Michael Herrera Balancing Vision and the Bottom Line

Transcription

1 ORCHESTRAS CANADA / ORCHESTRES CANADA Managing Your Financial Information through Your Accounting System A Guide to Setting Up (and modifying) your Chart of Accounts A companion to A Sustainability Toolkit for Orchestras With generous support from ORCHESTRAS CANADA/ORCHESTRES CANADA The Esplanade, Toronto, ON M5E 1A7 Canada PH FX info@oc.ca

2 Managing Your Financial Information through Your Accounting System Table of Contents Introduction...1 Chart of Accounts and Financial Reporting...1 General Information and Definitions...1 Overall Financial Reporting...2 Financial Reporting by Project or Event...3 Principles to Consider...4 Developing an Effective Chart of Accounts...5 General Information...5 Balance Sheet Accounts (accounts 1000 to 3999)...5 Revenue Categories (accounts 4000 to 5999)...5 Government Grants...5 Revenue Earned Revenue...7 Revenue Fundraising...8 Expenses Categories (account 6000 to 9998)...9 Artistic Expenses...9 Production Costs Education and Outreach Costs Fundraising Costs Marketing Costs Administrative Salaries and Benefits Costs Other Administration Costs Changing Your Existing Chart of Accounts Review Current Practices Consolidating Accounts Final Comments Appendix A Revenue Accounts Expense Accounts Appendix B Sample Project Budget POPS CONCERT Number

3 Introduction This guide has been designed to assist orchestras to use their accounting systems most effectively, to better capture and analyze financial performance. The guide is divided into three sections: The Role of the Chart of Accounts in Financial Reporting Developing an Effective Chart of Accounts Modifying An Existing Chart of Accounts Because it is the tool most often referred to, this guide will primarily focus on the Income Statement. Readers wishing to gain more in-depth knowledge of the entire cycle of financial planning, analysis and reporting should consult an excellent guide prepared by Heather C. Young. Her Finance for the Arts in Canada is a good general primer on all of these subjects. To learn more, visit Chart of Accounts and Financial Reporting General Information and Definitions Account codes are the basic units, or building blocks, of all financial information. Their integrity and the level of detail they speak to will determine the efficiency and the effectiveness of the time you and your organization spend on financial management. Therefore, it s vitally important that you capture the right amount of detail at the account level not too much, and not too little. It is critical for the orchestra s general manager, bookkeeper and treasurer to communicate what the information requirements are of the organization, what the reporting expectations are and what processes need to be put into place to ensure that the right model is developed. Accounts are generally classified into five categories. The first three categories 1. assets 2. liabilities 3. equity are the categories that you find on your organization s Balance Sheet or Statement of Financial Position. 1

4 The other two categories 4. revenues 5. expenses form your Income Statement. (You may also know this statement as a profit and loss statement, statement of operations or statement of revenue and expenses.) The listing of accounts that your organization chooses to segment its financial information is called a chart of accounts. This guide will focus on the last two categories: revenues and expenses. We ll specifically focus on the creation of general accounts, used when analyzing overall results. However, we will also discuss project codes (also known as job codes). These latter code types are useful if you wish to understand (for example) the financial performance of individual concerts on a series, or to compare the performance of one series against another. If you do not use job codes, you ll be hard pressed to isolate one series subscription revenue against that of another series, or one concert s production expenses against another. In all accounting software packages, basic accounts are assigned an account number. This number can be of any length, depending on the complexity of your organization. For this guide, we will assume that you will be using a four-digit account number. Overall Financial Reporting If you are reading this guide, you are likely to be familiar with your organization s overall income statement. What s more, you ve likely seen the same information presented in a number of different ways: produced directly from your accounting software package, presented and interpreted by the Treasurer to your board of directors, presented by your auditor to your board and membership, re-stated in Orchestra Canada s Comparative Report, or presented in various government funders financial information pages. Although there may be differences between how information is categorized and clumped, the process of compiling the information is the same. If you have a logical account structure, you ll find the process relatively simple. If, however, you find yourself having to combine selected transactions from one account with selected transactions from another to present your financial information in a way that s consistent with a funder s requirements, you should consider re-evaluating your existing chart of accounts. 2

5 Financial Reporting by Project or Event The ease with which you can track the results of projects with specific funding or individual performances/events is linked to how your accounting system is set up and whether or not you are appropriately tracking these detailed revenue and expense lines. Many orchestras track and report the revenues and expenses by specific project or event. They do this by using the functionality within the accounting package known as either project costing or job coding. How do you work with this functionality most effectively? 1. Determine which events or projects you want to track. 2. Develop a logical coding convention for identifying these projects. 3. Ensure that all of the associated inputs into your accounting system, whether revenues (such as ticket sales, sponsorships, project-specific grants) or expenses (such as hall rental, per service musician expenses, event-specific marketing, or salary allocations) can be broken out and recorded as part of a particular project or event. By determining in advance what projects are important to track, you can then ensure that all the transactions are properly recorded in your accounting system to enable you to create reports accurately by project or event. Project codes can be alpha-numeric and can range in size from 4 digits to even more. For example, if you wanted to create project codes for each of your pops series programs and you offered 5 different programs, you might then set up 5 distinct project codes POPS1, POPS2, POPS3, POPS4 and POPS5. You then need to ensure that all transactions relating to these concerts are allocated properly first of all, to the correct account and secondly, to the correct project. To make best use of the time you re investing in designing your project codes, you may want to consider both (a) how you will use them in the current year, and (b) how they might be helpful to you in future. If you think this through at the design phase, you can facilitate future analysis by capturing trends at the project level. Carrying on with our example of pops series codes, you can always use the code POP1 to track your first pops concert each season and compare it to prior years performance. You d be comparing like events at least, in terms of scheduling. Keep in mind, though, that you should only use the POPS project coding for pops concerts; this way, if you wanted to generate summary financial information for all pops concerts in a given year, you could do so by running a report on all projects with the code POPS*. This logic sequence is critical when being able to generate useful summarized financial information. 3

6 For specific information on project codes or job codes and their application in your accounting software, you can visit the user s guide and help menu of your accounting package. Principles to Consider Different orchestras will have different information and reporting requirements, so it s good to consider your own orchestra s needs before simply adopting another orchestra s chart of accounts structure. You need to understand the rationale for why certain accounts exist and why others do not. In this guide, we talk about some best practices; ultimately, though, you will need to determine what your organization requires. It is important to remember that more detail does not necessarily lead to better information or increased efficiency. In their zeal to capture information, many organizations end up creating too many accounts. A complex system can be unwieldy to manage, and the information you generate from it may be difficult to analyze. You should determine what minimum threshold revenue or expense level is appropriate for an account to be justified. A good rule of thumb is to create accounts where the total expected allocation for the account is not less than.5% of the total budget. If you have an annual operating budget of $100,000, that would mean that you would not set up an account where the anticipated allocation is less than $500..5% of total budget is a significant enough amount to warrant tracking and analysis. Where you are dealing with amounts anticipated to be less than.5%, you will also want to think about logical groupings of expense types, in order to create accounts that contain similar kinds of transactions. If you were to combine expenses of too many types into one account, you would not be able provide an appropriate breakdown to other users of the financial information. You should also determine the kind of financial breakdown your funders (private sector or government) require. If you are expected to track specific expenses separately from others, you should ensure that you create accounts that can provide the necessarily level of detail. It s also good to look at all current funders reporting requirements when you re still in the design phase, to ensure that your account design facilitates the reports you ll be preparing several months from now! Remember, it is always easier to add several accounts together for reporting purposes than it is to split out information once it has been commingled into one account. 4

7 Developing an Effective Chart of Accounts General Information In this portion of the guide, we will primarily focus on creating the general chart of accounts for the typical revenues and expenses of a symphony orchestra. Although you can assign any account code to any type of account, we strongly encourage you to keep similar accounts within the same numeric range. This will enable you to quickly group similar accounts together when you are running your financial reports or preparing any financial analysis. We also recommend that you leave gaps between categories. This will make it easier to maintain the groupings should you need to add new accounts later. You will see examples of this throughout the guide. Balance Sheet Accounts (accounts 1000 to 3999) If you are creating codes for your balance sheet, we would suggest you follow the following logic: Asset categories (including cash, receivables and fixed assets) (1000 to 1999) Liability categories (including payables and deferred revenues) (2000 to 2999) Equity categories (including accumulated surplus/deficit and invested in capital assets) (3000 to 3999) Revenue Categories (accounts 4000 to 5999) Government Grants (4000 to 4499) Earned Revenue (4500 to 4999) Fundraising (5000 to 5999) Government Grants Government grants can be subdivided by grant type (operating vs. project funding) and/or by government level (federal, provincial, regional or municipal). You can use the account coding logic to differentiate the types. 5

8 Here s a sample account listing, demonstrating how you can differentiate operating/project grants and grants by government level Canada Council Operating 4005 Canada Council Project 4015 Department Canadian Heritage Capacity Building 4100 Ontario Arts Council Operating 4105 Ontario Arts Council Project 4115 Ontario Trillium Foundation 4200 Regional Funding Operating 4205 Regional Funding Project 4300 Municipal Funding Operating 4305 Municipal Funding Project 4400 Other Government Funding Operating 4405 Other Government Funding Project Here s the logic behind this proposed structure: The accounts between 4000 and 4499 relate to government funding. Accounts that end in 5 are project funding and accounts that end in 0 are operating funding. Federal funding is coded 40, provincial funding 41, regional funding 42, municipal funding 43, and other government funding is coded 44. How to use the project function within this account structure The project function is very useful if you need to generate financial reports relating to a specific activity or activities. If you wanted to generate a financial report for a specific tour for which you had received funding from a number of different government levels, you could segment the relevant project funding categories above using the project code function in your accounting system, and simply allocate the appropriate amount from each touring grant to the appropriate project code. For instance, if your organization receives touring dollars each year to visit each Canadian province, you could set up project codes such as TONT for Ontario, TQUE for Quebec, TALB for Alberta, and so on, within the existing accounts. This would enable you to compare Alberta tour financials year over year, and will also facilitate the easy preparation of final reports. If you only plan and execute one tour a year, you might choose to only set up one TOUR project code within the relevant revenue and expense accounts. Again, this will facilitate year over year comparisons, as well as easy reporting. 6

9 Revenue Earned Revenue Here is a sample earned revenue account listing for a typical symphony orchestra organization: 4500 Subscription Revenue 4530 Single Ticket Sales 4540 Fee for Service Revenue 4550 Touring and Run-Out Revenue 4600 Education Concerts 4700 Other Special Initiatives (Youth Orchestra) 4800 Interest Income 4900 Other Earned Revenue You will note that the sequence of numbers leaves a fair amount of room in between each account. This provides you with the flexibility to add additional accounts should the nature of your earned revenue change. Again, we ve endeavoured to maintain the logic in our numbering: income lines that relate to regular orchestral performances begin with 45, whereas education and other special initiatives are segregated into the 46 and 47 level. How to use the project function within this account structure To better understand the nature of your core business the presentation of concerts you are likely to want to be able to track both revenues and expenses by concert or event. By attaching project codes to Account 4530 (single ticket sales) and to any other revenue or expense account whose allocations can be said to belong to a specific performance, you will be able to review the results of each concert. This will help your current-year budgeting, and will also facilitate future planning. If, for instance, you d like to understand the potential financial impact of adding another program to a series, the project coding will help you easily isolate current perprogram financials. We ve included a sample project report for a typical pops concert at the back of the guide as an appendix. 7

10 Revenue Fundraising 5000 Individual Giving 5100 Corporate Sponsorship and Donations 5200 Foundations 5300 Special Event Revenue (gross) 5400 Volunteer Committee Donations 5500 Gambling Revenue 5600 In-Kind Donations 5700 Interest from Endowment 5800 Other Fundraising Initiatives A Word About Fundraising Records It is of paramount importance that you record fundraising results with great care in your accounting software package. Your auditor will review these records carefully in the course of his or her annual work, and if you are ever subjected to an audit by the Canada Revenue Agency, you ll be much happier if your records (including all entries on your accounting package, copies of charitable receipts, third-party appraisals, and donor lists) are in immaculate condition. However, you will need to consider the level of detail in account and project set up that will best suit your purposes. Many mid-sized and all larger orchestras track their donor data and the results of various fundraising initiatives and strategies in specially designed fundraising software. Before you design your chart of accounts, you should consider whether you wish to capture campaign detail in your accounting set-up as well, or if your detailed reporting and analysis needs will be met by your fundraising software. Special Event Revenues There are a couple of ways that orchestras can track special event revenues. The sample Fundraising Revenue codes above provide for a separate account for special event revenues. We re assuming that all revenue for special events whether from an individual or a corporation would be entered into account # However, if it is important for you to track donations from individuals separately perhaps as a way of cross-checking against the receipts that you will need to issue you may want to use the project code function to capture revenue source detail for your special events. 8

11 Alternatively, if you wanted to use your accounting software to track cumulative relationships with a corporate funder across your various programs of solicitation (ranging from concert sponsorship to table purchase at galas to a foursome at a golf tournament or any other annual giving program), all of this information could be tracked using project codes but still contained within the one general account of Using a generic, yet logical, project coding sequence will give you the flexibility to change special events year after year without compromising your ability to perform trend analysis. If your orchestra is committed to holding 4 special events per year, but planners are aware that the nature of the specific events could evolve over time, you might set up project codes SPE1, SPE2, SP3, SPE4. This way, you can track, year over year, the results of your special events separately, whether they are golf tournaments, silent auctions, fashion shows, gala dinners or whatever. Expenses Categories (account 6000 to 9998) Here is a sample listing of expense accounts for a typical symphony orchestra organization: Artistic Costs (6000 to 6499) Production Costs (6500 to 6999) Education and Outreach Costs (7000 to 7999) Fundraising Costs (8000 to 8499) Marketing Costs (8500 to 8999) Administrative Salaries and Benefits (9000 to 9499) Other Administration (9500 to 9998) We ve purposely chosen not to include 9999 as an account code. This is because that account number is normally reserved for use as a suspense account. If you are unsure of how best to allocate an entry or if a not-yet-reconciled error has occurred, you can record that transaction in this account. This enables quick identification of transactions requiring correction, clarification or resolution. Artistic Expenses Artistic expense accounts will vary, depending on the type and size of orchestra and the type of work performed by the orchestra. The following list may be too detailed for some orchestras, while others may need to include more accounts. Consider your organization s specific structure and activities, the.5% threshold rule and your tracking needs as you design these accounts. 9

12 6000 Artistic Director 6100 Core Musicians Fees 6150 Core Musicians Benefits 6200 Guest Artists Fees 6250 Guest Artists Expenses 6300 Audition Expenses 6350 Per Service Wages 6400 Composer in Residence Fees 6450 Other Artistic Staff In this account design, both artistic and production costs fall in the 6000 account numbering series. Artistic and production costs are integrally linked with program delivery thus this suggested numbering convention. Project coding is very useful in this area. Allocating guest artists fees and related expenses to particular projects/programs will help you properly plan and monitor each project/program. You may choose to allocate core musician fees and benefits to individual programs, but the utility of this will depend on the nature of your agreements with the musicians. If they are paid on a fee for service basis, per concert cost allocation is both easy and defensible: there s no guess work attached. If they are compensated through a guaranteed weekly contract, you will need to work out a consistent method for allocating their fees across the programs that you present, and you may also need to consider how best to deal with the services you are paying for but not necessarily using. Typically, the Artistic Director s costs are not allocated to individual projects but again, this depends on the structure of your orchestra s contract with the Artistic Director. Production Costs Production expense accounts will also vary, depending on the nature of the work you do. Again, consider the nature of your organization s activities, the.5% threshold rule and your tracking needs as you design these accounts Theatre Rental 6510 Front of House Expenses 6520 Stagehand Expenses 6600 Box Office Expenses 6650 Ticket Printing Expenses 6700 Music Rental/Purchase 6750 Music Royalties 6800 Equipment Rental/Purchase Expenses 6900 Production Staff Salaries and Benefits 10

13 With the exception of salaried production staff, you should be able to allocate most production costs to specific projects/programs, and the project code function will serve you very well here. Education and Outreach Costs We ve observed that many orchestras are not yet tracking costs associated with their education and outreach programs. As many funders, both private and public, are keen to understand the qualitative and quantitative impact of orchestras work in this area and to contribute to its costs we highly recommend that you consider tracking the expenses for your education and outreach work Education Staff Salaries 7100 Education Programming Costs 7200 Other Education and Outreach Costs This list is relatively brief. Many of the expense areas in your education and outreach work likely have general accounts already set up in other areas (such as certain artistic or production costs, or administration costs such as printing and photocopying). You can use the project coding function within these existing accounts to identify specific education and outreach expenses. This way, you can track your expenditures in this area without having to expand the number of general accounts in your chart of accounts. Fundraising Costs The size of your orchestra s budget and the nature of your fundraising programs (whether volunteer or staff driven) will largely determine your need to closely track costs in this area. Again, consider the.5% threshold, your information and analysis requirements, and the needs of key staff and volunteers before you design your account structure Fundraising Salaries and Benefits 8100 Fundraising Supplies 8150 Fundraising Postage 8180 Sponsor Signage 8190 Sponsor Reception Expenses 8200 Fundraising Printing and Photocopying 8250 Other Fundraising Special Event Expenses 8300 Bingo/Gambling Expenses 8400 Other Fundraising Expenses Project codes are useful in this area, too. By using them, you can identify fundraising expenses within your general accounts (such as artistic expenses at a gala dinner). You can also use project codes within individual fundraising expense lines to identify 11

14 each special event s costs. Finally, coding can also help you analyze the risk, effectiveness and efficiency of your various fundraising initiatives, enabling an easy comparison of revenues to expenses for each event or activity. Marketing Costs As a general rule, orchestras have lean marketing budgets and they need to ensure that they re spending what funds they have as effectively as possible. Here is a sample listing of marketing and publicity accounts used by a symphony orchestra organization Marketing/Publicity Salaries and Benefits 8600 Subscription Brochure 8620 Other Marketing Printing 8650 Single Ticket Initiatives 8700 TV Ads 8750 Print Ads 8760 Radio Ads 8770 Other Publicity 8800 Front of House and other Displays 8850 Services, Clippings, Lists 8900 Annual Report 8950 Other Marketing Administrative Salaries and Benefits Costs The number and complexity of your organization s accounts in this area will depend on the size of your organization and the nature of your relationship with the people who provide management services to you (whether they are employees or independent contractors, for instance). Here is a sample list of administrative salaries and benefits accounts for a typical symphony orchestra organization Wages 9100 Employment Insurance Expenses 9150 Canada Pension Plan Benefits 9180 Workplace Safety and Insurance Board Expenses 9190 Employer Health Tax Expenses 9200 Part-Time Staffing 12

15 Other Administration Costs It s not unusual for even smaller organizations to have a significant number of accounts in this area. Consider the.5% threshold rule, and consider also the value of your time in allocating and tracking expenses like photocopying and postage into departmental activities and projects. Here is a sample list of other administration costs accounts for a typical symphony orchestra organization Office Rent 9520 Office Expenses 9530 Hydro and Utilities 9650 Telephone, Fax, Internet 9700 Postage and Courier 9750 Print and Photocopying 9800 Board and Meeting Expenses 9850 Training and Professional Development 9900 Legal and Audit 9920 Other Consulting Costs 9950 Insurance 9960 Depreciation 9990 Other You can certainly use project codes within these individual accounts. For instance, if you don t want to set up separate accounts for marketing-related printing and mailing costs, you can simply build project coding for specific departments into these general accounts. 13

16 Changing Your Existing Chart of Accounts Review Current Practices Most often, new general managers, treasurers and bookkeepers inherit their chart of accounts from a predecessor. It may be a good and useful chart of accounts, providing you with everything you need and it may not be. In any case, it s always a good idea to review your chart of accounts every two to three years, to ensure that you are still getting what you need from it. You may find that you need more detailed reporting than you re set up to collect or that you ve got a needlessly complex chart of accounts. Moving Forward If you are not sure if your chart of accounts works for you, we strongly recommend that you revisit the broad principles outlined at the beginning of this guide. Here, specifically, is what we recommend that you collate and consider: Think about the financial reporting requirements of your various funders if you need to segregate types of transactions within individual accounts to meet your funders reporting requirements, you may wish to create more accounts. Could you benefit from a closer tracking of certain expense lines? Are funders asking for a more detailed breakout of expenses specifically related to the administration of a specific project? Again, you might want to consider setting up project codes to better identify these expenses within a general expense account. Prepare a list of projects (such as concerts, special fundraising events, education and outreach initiatives) that you d like to isolate, to analyze and/or to report on. This will give you some clues about the kinds of project codes you might want to set up. Understand the 0.5% threshold and just what it means in the context of your organization s budget. Review your largest dollar-figure accounts to determine whether there is a better and more useful way of describing the types of transactions that are represented within them, either by creating a new account or by using project codes. Obviously, there will be times when there is no need for this operating grants from a single level of government provide a good example of this. However, if you find areas where more detail would be useful, take action! 14

17 Think about the kinds of discussions that come up in board and committee meetings: are there certain areas that board members flag during detailed discussions of organizational finances areas that your current chart of accounts does not readily isolate? If, for instance, you need an efficient way of tracking sales for individual concerts and the organizational practice has been to track all single ticket sales on one line, you might consider using project codes within that account to more readily highlight the progress of individual concerts sales. Better Retroactive Information The kind of thinking we re suggesting to you will facilitate a better tracking of relevant detail on a go-forward basis but how do you perform trend analysis when you are working from older, consolidated information? The answer is: it depends! You are not expected to dig through past documentation to re-allocate to the penny. We suggest that you estimate proportionally, based on current experience and detailed future budgets. You can easily do this if you are using the OC Financial Sustainability Toolkit but you can also program any Excel spreadsheet to calculate percentages for you, too. In the example below, the orchestra started tracking detailed information about its single ticket advertising in 2006, but they also wanted to estimate previous spending in equivalent detail. Here s what they might do, working back from actual figures in 2004 and 2005: SINGLE TICKET ADVERTISING 2004 (estimate) 2005 (estimate) 2006 (actual) Single Ticket Advertising Creative Costs $ 10,000 $ 12,000 $ 15,000 Advertising-Print $ 28,000 $ 15,000 $ 10,000 Advertising-Radio $ 5,000 $ 7,500 Advertising-TV $ 5,000 $ 7,500 Advertising-Posters $ 5,000 $ 5,000 $ 5,000 Advertising-Postcards $ 3,000 $ 3,000 $ 3,000 Advertising-Flyers $ 2,000 $ 2,000 $ 2,000 TOTAL SINGLE TICKET ADVERTISING $ 48,000 $ 47,000 $ 50,000 15

18 In this example, the orchestra only used print advertising in 2004, with a similar strategy for posters, flyers and postcards year over year. Radio and television advertising were tried in 2005, and their use was expanded in The estimate, while unlikely to be absolutely accurate, still provides the management team with better information than if they had kept the 2004 and 2005 balances recorded as a one-line expense item. Consolidating Accounts After your first review of the chart of accounts, you may notice some accounts have not been used in years, and others that appear to be redundant. You may, for instance, have some difficulty figuring out what to allocate to office expenses, what to office supplies, what to stationery, and what to general office. Here again, the.5% rule can help you identify some logical candidates for account consolidation. Once you have determined the accounts that can be eliminated, you must communicate this with your bookkeeper and with any other staff who have responsibility for coding invoices. These accounts should be locked in your accounting system so that no further entries may be made. Any budgeted amounts included in the old accounts should be transferred into the new consolidated account. Using the previous example once again, all printing charges could be combined as one account line. 16

19 SINGLE TICKET ADVERTISING 2004 (estimate) 2005 (estimate) 2006 (actual) Single Ticket Advertising Creative Costs $ 10,000 $ 12,000 $ 15,000 Advertising-Print $ 28,000 $ 15,000 $ 10,000 Advertising-Radio $ 5,000 $ 7,500 Advertising-TV $ 5,000 $ 7,500 Advertising-Print Materials $ 10,000 $ 10,000 $ 10,000 Advertising-Posters Advertising-Postcards Advertising-Flyers TOTAL SINGLE TICKET ADVERTISING $ 48,000 $ 47,000 $ 50,000 Final Comments Analyzing and understanding your organization s financial performance is critical to success. But you can only achieve and sustain this success through an intelligent use of the basic tools and materials at your disposal. Accounts and project codes are effective basic tools to generate the financial information you need, and it s critical that you know how to use them appropriately. 17

20 Appendix A Revenue Accounts 4000 Canada Council Operating 4005 Canada Council Project 4015 Department Canadian Heritage Touring 4100 Provincial Arts Council Operating 4105 Provincial Arts Council Project 4115 Provincial Foundation 4200 Regional Funding Operating 4205 Regional Funding Project 4300 Municipal Funding Operating 4305 Municipal Funding Project 4400 Other Government Funding Operating 4405 Other Government Funding Project 4500 Subscription Revenue 4530 Single Ticket Sales 4540 Fee for Service Revenue 4550 Touring and Run-Out Revenue 4600 Education Concerts 4700 Other Special Initiatives (Youth Orchestra) 4800 Interest Income 4900 Other Earned Revenue 5000 Individual Giving 5100 Corporate Giving 5200 Foundations 5300 Special Event Revenue (gross) 5400 Volunteer/Committee Donations 5500 Gambling Revenue 5600 In-Kind Donations 5700 Interest from Endowment 5800 Other Fundraising Initiatives 18

21 Expense Accounts 6000 Artistic Director 6100 Core Musicians Fees 6150 Core Musicians Benefits 6200 Guest Artist Fees 6250 Guest Artist Expenses 6300 Audition Expenses 6350 Per Service Wages 6400 Composer in Residence Fees 6450 Other Artistic Staff 6500 Theatre Rental 6510 Front of House Expense 6520 Stagehand Expenses 6600 Box Office Expenses 6650 Ticket Printing Expenses 6700 Music Purchase 6750 Music Royalties 6800 Equipment Rental/Purchase Expenses 6900 Production Staff Salaries and Benefits 7000 Education Staff Salaries 7100 Education Programming Costs 7200 Other Education and Outreach Costs 8000 Fundraising Salaries and Benefits 8100 Fundraising Supplies 8150 Fundraising Postage 8180 Sponsor Signage 8190 Sponsor Reception Expenses 8200 Fundraising Printing and Photocopying 8250 Other Fundraising Special Event Expenses 8300 Bingo/Gambling Expenses 8400 Other Fundraising Expenses 8500 Marketing/Publicity Salaries and Benefits 8600 Subscription Brochure 8620 Other Marketing Printing 8650 Single Ticket Printing Initiatives 8700 TV Ads 8750 Print Ads 8760 Radio Ads 8770 Other Publicity 8800 Front of House and other Displays 8850 Services, Clippings, Lists 8900 Annual Report 8950 Other Marketing 9000 Wages 9100 EI Expenses 9150 CPP Benefits 9180 WSIB Benefits 9190 EHT Expenses 9200 Part-Time Staffing 9500 Office Rent 9520 Office Expenses 9530 Hydro and Utilities 9650 Telephone, Fax, Internet 9700 Postage and Courier 9750 Print and Photocopying 9800 Board and Meeting Expenses 9850 Training and Professional Development 9900 Legal and Audit 9920 Other Consulting Costs 9950 Insurance 9960 Depreciation 9990 Other 19

22 Appendix B Sample Project Budget POPS CONCERT Number 1 POPS Subscription Revenue 10,000 POPS Single Ticket Sales 15,000 POPS Corporate Giving 5,000 POPS1 Total Revenues 30,000 POPS Core Musicians Fees 15,000 POPS Core Musicians Benefits 3,000 POPS Guest Artists Fees 3,000 POPS Guest Artists Expenses 150 POPS Theatre Rental 2,000 POPS Front of House Expense 1,600 POPS Stagehand Expenses 1,500 POPS Box Office Expenses 1,500 POPS Ticket Printing Expenses 500 POPS Music Rental/Purchase 1,500 POPS Music Royalties 750 POPS Equipment Rental/Purchase Expenses 500 POPS Sponsor Signage 100 POPS Sponsor Reception Expenses 100 POPS Single Ticket Initiatives 500 POPS TV Ads 300 POPS Print Ads 200 POPS Radio Ads POPS1-Total Expenses 32,200 POPS1-Projected Net Income (Loss) (2,200) 20