FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

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A feasibility study prepared for the Black Box TrustNovember 2011The major items of expenditure at the Black Box are „wages & NI‟ and „rent‟ which togetheraccount for almost two thirds of total expenditure (see Table 4.5 below). The next largest item ofexpenditure is „artistes & travel‟ which amounted to £35,550, or almost 10% of total spend in2009/10.Source: Annual AccountsTable 4.5: Operating expenditure, 2009/102009/10 % of totalWages, NI & training 180,264 47.0%Licensing costs 1,824 0.5%Advertising 9,795 2.6%Sound, lighting & equipment 12,168 3.2%Performing rights 4,092 1.1%Artistes & travel 35,550 9.3%Rent 69,996 18.2%Repairs & cleaning 11,311 2.9%Heat, light & power 11,387 3.0%Insurances 4,520 1.2%Telephone & internet 1,652 0.4%Stationery and postage 965 0.3%Bank and other charges 6,567 1.7%Accountancy & payroll 2,675 0.7%Miscellaneous 214 0.1%Depreciation 30,619 8.0%Total expenditure 383,599 100.0%The wages bill covers the employment of two full time staff – a Manager and Assistant Manager– and various part time or casual staff. The list of staff and their rates of pay are shown in Table4.6 below.34
A feasibility study prepared for the Black Box TrustNovember 2011Table 4.6: Black Box staffing and rates of pay, October 2011PositionManagerAssistant ManagerBook KeeperDuty ManagerAdmin AssistantGreen Room SupervisorBar StaffWage£22,061/yr£9.05/hr£8.50/hr£8/hr£8/hr£7/hr£6.08/hrSource: The Black BoxTotal staffing costs in the first 6 months of the current year amounted to £63,241, comparedwith £72,234 in the same period last year, a reduction of 12.4%.The other major item of expenditure for the Black Box is rent. The premises currently occupiedby the Black Box are held on a 10 year lease which will expire in 2016 with an option tocontinue for another 5 years. The annual rental cost is £70,000.We have not had the opportunity to examine the operating costs of the organisation in anydetail to see if there are any opportunities to become even more efficient. However weconsider that going forward the Board might wish to undertake a closer examination of its costsand how these are controlled on an ongoing basis.4.5 ConclusionThe Black Box has done well to grow its turnover and income over the four years of itsexistence, although the current economic recession has seen this growth stall. This has beenachieved with a reduced level of grant assistance from the public sector and the company hadachieved a position of over 80% self generated income by 2009/10.However, the company had not made profits in the first four years of its existence and anexceptional loss in 2008/09 has left the company with a large bank overdraft and operating as agoing concern. Whatever the way forward for the organisation, the bank overdraft created bythis loss needs to be addressed as it constrains the future development of the company.The company faces a number of financial challenges looking forward including the continuingeconomic recession which is impacting on the business. In these circumstances it will beimportant for the company to strengthen its financial management and reporting systems as itseeks to maximise revenues and control its costs.35
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FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

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