FY16 Shortfall Management Memo
- FY16 projection with no expense cuts or changes in revenue goals shows a shortfall of $118,655
- This is due to the following:
- $50k in unidentified revenue at start of budget year
- Loss of MSAB grants ($100k)
- Shortfall in CD sales
- We have picked up new bookings for the year and these are included in the projection.
In December we were estimating a shortfall of around $120,000. The projection with proposed changes shows a shortfall of $63,201. Major changes include:
- Unidentified $20k in new funds (house concerts, other)
- Increase in ticket sales at Covers with a promotional sponsorship from Summit Brewing
- Using Mainspring Productions to book summer concerts
- Freezing salaries as of January 31.
- Eliminating 403(b) match for all employees.
- Reduction of some education expenses (photographer)
- Reducing musicians at Covers from 4 to 3.
There are two efforts that need to begin immediately.
- Continual review of projection as new information comes in (grants awarded, cd sales review, etc). Company will continue to cut expenses and identify new revenue.
- An 18-month review of cash flow to understand how and when we will make a turn-around. We will be working closely with Nonprofits Assistance Fund to manage all aspects of our Finances. CLA (accounting team) is also apprised of our current situation.
Other items that will help our balance sheet:
- Staff employees are now encouraged to use vacation time before end of Fiscal Year so it is not on balance sheet.
- CONUS per diem increased to $51/day on October 1. Typically we use this rate for singer per diem while on tour. For the remainder of this fiscal year Cantus per diem will remain at $46/day.
- CDs have been priced at $10/per from now through end of year to reduce inventory and bring in additional cash.