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Future Strategies for EFP – MCI Proposal

Future Strategies for EFP – MCI Proposal. Session 3: Financial Management Setting the right financial expectations and strong financial management are key aspects of the PCO business. What are the latest best practices on budget management and how do we control the risks of the event.

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Future Strategies for EFP – MCI Proposal

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  1. Future Strategies for EFP – MCI Proposal

  2. Session 3: Financial Management Setting the right financial expectations and strong financial management are key aspects of the PCO business. What are the latest best practices on budget management and how do we control the risks of the event. Presentation : René Haller 13 March 2010

  3. Contents • What is a Budget • Importance of the Budget / Finance within the Congress organization • Setting the expectations • Management of the Budget • Latest Practices • Risk Control

  4. W • hat is a Budget

  5. What is a Budget Wikipedia says: • A budget (from old French bougette, purse) is generally a list of all • planned expenses and revenues. It is a plan for saving and spending. • In other terms, a budget is an organizational plan stated in monetary terms. • In summary, the purpose of budgeting is to: • Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. • Enable the actual financial operation of the business to be measured against the forecast.

  6. What is a Budget There are different budget types • Revenue Budget • Expenses Budget • Cash Flow Budget

  7. Revenue Budget • Participant Registration • Exhibition Surfaces • Symposia Satellites • Other Income: • Sponsored sessions • Congress bags • Printed Matters • Pads and Pens • Insert in Congress Bags • Advertisement • Lanyards • Social Events • Refund of VAT (if possible)

  8. Expense Budget • Venue Rental • Printed Matters • A/V and Staff • Marketing • Socials • Faculty • Transportation

  9. Cash Flow Budget If the event is self-financed, there is more security for the client

  10. I • mportance of the Budget / Finance within the Congress organization

  11. Importance of the Budget CLIENT  Reporting/ updating lists Client Zone  Budget & Financial Control Client Zone MCI Event Director Transport Social Events Registration Project Management Hotels Exhibition / Sponsorship Pre-convention Meetings Creation of registration form Assistance / Staff Room research/ Negotiation Exhibition Layout and Design Flights Ground Mailing of form Action Plans & timelines Dine around Sales & Marketing Reservation Centralization of registrations Excursions Deposit payments Proactive sponsorship Budgeting & Control Special request Themed Dinners Rooming lists Onsite delivery and control Abstracts and Scientific Programme Badges, conference kits Allotment handling Gala Dinner Online Registration Dedicated phone & fax lines Meetings Consulting and return on investment

  12. S • etting the Expectations

  13. Setting the Expectations • What does the client want? • General • Breakeven • Maximum Result • Specific • Scientific Oriented • Attendance Oriented • Socially Oriented • « Cheap » Oriented • Sponsor Oriented • Quality Oriented

  14. M • anagement of the Budget

  15. Management of the Budget • Cost control • Client expectations will help you control the budget • Guarantees • How strong is the PCO involvment (risk share / profit share). The PCO can guarantee profit • Fund raising • Institutions, Government, Organisations • Sponsors • Congress / content related companies

  16. Management of the Budget • Taxation / VAT • Recuperation of VAT • Accounting • Reconciliation of accounts between PCO budget and PCO accounting • Finance report / Final statement • By external auditor

  17. Management of the Budget Budget and real expenses need to be compared at all times

  18. L • atest Practices

  19. Latest Best Practices Establish Benchmarks

  20. Management of the Budget Budget and real expenses need to be compared at all times

  21. Latest Best Practices Establish Benchmarks: Same can be done for Revenue Budget % • Participant Registration • Exhibition Surfaces • Symposia Satellites • Other Income: • Sponsored sessions • Congress bags • Printed Matters • Pads and Pens • Insert in Congress Bags • Advertisement • Lanyards • Social Events • Refund of VAT (if possible) % % % %

  22. R • isk Control

  23. Risk Control • Know the scope / impact of your event • eg. is animal research involved • Choice of Destination / Venue • size of the venue, accessibility of the venue / city, political situation of the destitation • Get information on local habits • staff rates, communication ways, financial recommendations, city regulations • Financial Regulations • Tax applications, money transfers

  24. Risk Control But also • Terrorist threats • Natural Disasters • Pandemics • Economic Crisis • Set appropriate congress deadlines • allows to give enough reaction time • Setup of a Marketing Plan • define strategy and means of distribution as well as target audience • Establish worst case scenarios • have different budget versions

  25. Be Partners Client PCO

  26. T • hank you

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