Wednesday, October 22, 2014

Mullet 2014 Accounting...

This post is made to have a transparent journal of the 2014 Mullet Accounting.  Race Directors are always searching for the proper balance to provide a great event, keep everyone happy, and break even when it comes to expenses. 

A big race is always a tremendous undertaking - both financially, and with one's time, energy, and effort.  Some years I lose money.  Some years I break even.  And some years I have quite a surprise surplus that is either donated to a local trail cause (CITA), or rolled over to help with expenses the following year.  I rolled over the leftover cash from 2013 to this year's race ($900) knowing that I had some things I wanted to provide at this year's race.

This year appears to be no different than past years in that regard as I had 8 fewer racers than last year show up at Lake Ahquabi.  Combine that with there being a number of free entries via the Series Winners from last year, and giving a discount to the Iowa City NCJC youth - meant the "entry fee gate" was a bit under from the prior 2 seasons.  Medals went up in price (USAC provided them last year which in turn, was spent on new number plates for the bikes), and Resource Revival raised their prices from the last time I ordered the same amount by well over $100.  I will have to study the bill, but some of that was due to being charged an artwork charge to change the year from 2012 to 2014 on the medal, and an extra charge for what they considered a "rush order" even though I really thought I had ordered the medals with plenty of time.  Reminder to self:  Get everything listed on your timeline of things to do for the race in order to avoid extra charges!!!

In addition, the toilets have increased in rental price as well from prior years.  Since the DNR closes the restrooms on October 1st, it is a requirement that I have toilets there - so this expense could only go away if I held the race before October 1st.  I moved from 2 toilets to 3 a couple of years ago, and would hate to cut back to 2 as I think for our numbers we need 3.  I had the Lodge rental expense this year because I wanted to make sure we did not conflict with an event being held there had somebody else rented it for race day due to the route going up the hill, and down the hill, and up the hill again by the lodge.  ;-)  I also wanted it in case of bad weather to house the potluck or possible start/finish line area.  The biggest expense was my decision to provide a prize table with much of it at my expense (I hate tapping out the same usual places that always provide Schwag), and hired chip timing which, when combined, was about the same cost as the t-shirts were last year.

All of that combined meant a dip into the carryover cash from 2014 race to stay solvent.  One never knows what the turnout will be, of if the weather will cooperate.  Regardless, I can use the lesson of this year's cost structure to tweak some things and improve for next year.  2011 was a similar year in numbers (155 that year) and expenses, as I had a $1,100 carryover from the 2010 race.  I had a carryover from last year of $900 which I used to cover the expenses for this year.

2014 Mullet Accounting

Race Timing:  $724
Motel for Timers:  $84
Cash payouts for Marathon and CAT I:  $1140
Resource Revival Award Medals:  $478.04
Prize Table:  $1216.79
Water:  $35.94
Food and Beverages for Volunteers:  $147
PiPi's Toilet Rental:  $220.60
Gas for Mower/Generator:  $6
U-Haul Rental:  $112.35
Registration Supplies:  $16.56
McKay Insurance: $512.50
DNR Permit: $25
DNR Lodge Permit: $90

Total Expenses:  $4808.78

Sponsor Cash Scheels: $200
Day of Race Registrations:  $1380
Payment #1 from Online Registration Processing Center: $20.00
Payment #2 from Online Registration Processing Center: $385.00
Payment #3 from Online Registration Processing Center: $1965

Total Income:  $3950
Carryover Cash from 2013:  $900

Income & Cash Balance: $4850
Less Expenses: - $4808.78

Ending Balance: $41.22 (rolled over to use for 2015)

Donation Money for IMBCS website/domain name fees:  $120.57 (goes into a separate holding account)


How to save money and budget for 2015?

• The prize table expense this year was a conscious choice on my part not to tap the same sources I have tapped before, ended up being the deal breaker.  Whether it was last year's expense of the t-shirts, or this year's prize table - that is an area worth cutting back on in expense.  Seeking out sponsor schwag, or skipping it all together is always an option to staying solvent.  In spite of how cool it is to have everyone walk away with a nice prize via the raffle ticket before the race started, or providing a t-shirt - it is a huge expense.  That being said,  huge word of thanks goes out to Rob Versteegh of Oakley, Scott Sumpter of Bike Iowa, and Scheels for the sponsorship support I did receive from all three for prizes.  Thank you very much!!!!   And for those of you who raced - consider all three sponsors when it comes time to buy eyewear, and to buy some cool cycling gear.

• Award Medals.  I need to look for an alternative, and much less expensive solution for the medals.  As neat as the Resource Revival medals are, they are not within budget as prices have increased and with all of the various age groups - that's a lot of custom medals.  Enough said.  Either a group purchase of IMBCS medals with the new IMBCS logo for all race directors that are interested, or me finding a lower cost solution - or even creative arts and crafts could be in order next year for medals.

• Cash payouts for Marathon will change next year as we move from my experimental phase of including a Marathon Category, to there being an actual series within the IMBCS Season of some Marathon races at events which will be up to each race director how they want to handle the awards on their own accord.  Medals.  Cash.  Prizes.  Or any combination of that.  I paid out pretty well for the Marathon, so that expense will change going forward following a very similar payout schedule to that of the Pycowpath Series Marathon events...

PyscowpathMarathon

• Cash payouts that I have used for CAT I have been pretty high (compared to what other series around us use as well), so I might have to tweak that a little more in line with the Psycowpath Payout to stay solvent...

Category 1 racers (men and women); Top finishers regardless of age (up to 5 when total field size is more than 10) will receive cash prizes according to the Psycowpath Cat 1 Payout Schedule 2013. Of those not recognized among the top overall finishers, the top 3 finishers in each age category will be recognized and receive medals.

CATIPayouts

Following the Psycowpath Marathon and CAT I Payouts - I would have paid out $555 instead of the $1140 that I did for a savings of $585.  That, combined with having had 8 more racers for 8 more entry fees to match last year's numbers - could have made quite a difference and left enough for a donation to CITA.

All in all, there are ways to adjust next year's budget, and features without dumbing things down too much.  Again, my goal is to break even, and not make any money on the adventure.  So I was happy to payout the carryover of $900 from the 2013 race in this year's prizes and cash payouts.

I just wanted to post up the transperency of accounting for a race so that all can see, understand, and hopefully for future race directors learn what to do, or what not to do.

The Mullet Fall Classic History of Participants

2014:  160 racers (broke even)
2013:  168 racers (surplus carried forward to 2014)
2012:  172 racers (surplus given as CITA donation)
2011:  155 racers (surplus given as CITA donation)
2010:  133 racers (surplus carried forward to 2011)
2009:  61 racers (broke even)
2008:  41 racers (in the red)

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