Download Exercise Three

Money Matters: Better Budgets for Small Museums
EXERCISE THREE: Wayward Symposium
You carefully developed this budget for a one-day symposium with one keynote
speaker, four follow-up speakers, and 200 participants. Only two speakers are from out
of town.
Budget
Expenses
1 speaker @ $400
4 speakers @ $100
Marketing
Lunch 205 @ $10
Speaker travel 2 @ $200
Total
$400
400
1,000
2,050 (includes the five speakers and 200 registrants)
400
$4,250
Revenue
200 registrations @ $40
$8,000
Net
$3,750
The bills have all been paid. You find that you actually received only $5,500 in revenue.
Expenses totaled $3,220. You know that only 130 people registered and that impacted
revenue, but your boss wants a better explanation. How much of the difference is
because only 130 people registered and how much is because the program cost more
than anticipated? Or less? Here’s what you know happened:
1. Just as the marketing materials were being finalized, the membership manager
successfully argued for a reduced registration fee of $30 for members and an
increased fee of $50 for non-members. Of the 130 who registered, 50 were
members.
2. The keynote speaker refused an honorarium.
3. Lunch cost $12 per person.
4. Speaker travel was only $200.
Questions
1. Prepare a financial report of actual income and expenses v. budget. Where are
the variances?
2. What have you learned?