Homework help. Thanks in advance. Homework help. Thanks in advance.

LONGTERM COMPANY GOAL: Satisfy client expectations while generating profits from operations focusing on the following: Management of corporate hospitality planning at sport attractions and events at sport venues Travel tours to major domestic sporting events Travel tours to major international sporting events Local, national, and international travel for sports teams BRANCH OBJECTIVES FOR FISCAL YEAR 2017:* 1. Increase net profits by 7.95% 2. Add an additional domestic tour package to an event in the U.S. that will generate profits and has the potential to appeal to families with children 3. Add one additional corporate hospitality event or contract at a sport venue or event in the Southern U.S. 4. Add one tour offering to a foreign sporting event *These goals are in addition to any changes already made to the FY17 budget per the assumptions BRANCH STAFF Branch Manager Assistant Branch Manager Marketing Specialist Sales Coordinator Two Sales Representatives Event Coordinator Two Event Managers Office Manager Receptionist/Secretary Administrative Assistant Two summer interns from NC State Eight Event Supervisors (parttime) SALARIES $46,750 $37,400 $34,000 $32,500 $22,900 each $31,500 $22,500 each $21,300 $19,400 $19,000 $4,200 each ($300/week for 14 weeks) $12,000 each EXPERIENCE GROUP Southern U.S. Branch ANNUAL REVENUES All Revenues Presented Net of Costs Object Account Name Class 1000 COMPANY APPROPRIATION 1010 General Company Appropriation Share 2000 CONTRACTS 2010 Atlantic Coast Conference (Men's Basketball Tourn.) 2020 Carolina Panthers 2030 Atlanta Falcons 2040 New Orleans Saints 2050 Speedway Motorsports 3000 LOCAL/DOMESTIC PROGRAMS 3010 College Football Programs 3020 Baseball Programs 3030 Golf Programs 3040 Special Programs 3050 NBA Programs 3060 Team Charter Services 3070 Alumni Charter Services 4000 INTERNATIONAL PROGRAMS 4010 Southern Hemisphere Rugby Tour 4020 Major International Competitions Packages 4030 European Soccer Tours FY16 $356,000 $40,000 $35,750 $35,750 $35,750 $31,500 $80,150 $75,150 $62,200 $51,100 $34,200 $22,500 $46,100 $75,875 $157,750 $112,850 ANNUAL EXPENSES Object Account Name Class 1000 SALARIES AND WAGES 1110 Branch Manager 1120 Assistant Branch Manager 1210 Marketing Specialist 1310 Sales Coordinator 1320 Two Sales Representatives 1410 Event Coordinator 1420 Two Event Managers 1510 Office Manager 1520 Receptionist/Secretary 1530 Administrative Assistant 1600 Two summer interns from NC State 1700 Event Supervisors 1800 Fringe Benefits (24.5% of salaries) 2000 SERVICES 2110 Postage 2120 Telephone 2310 Printing 2340 Public Relations 2350 Marketing/Advertising 2380 Publications 2400 Utilities 2500 Repairs/Maintenance 2700 Professional Fees 3000 SUPPLIES 3110 Office Supplies 3130 Contract Supplies 3180 General 4000 4010 4020 4200 4300 4400 4500 CHARGES Office Rent Equipment and Event Rentals Liability Insurance Credit Card/Bank Charges Subscriptions Taxes/Fees FY16 $7,350 $15,155 $21,530 $12,845 $44,300 $7,970 $19,815 $13,370 $32,865 $19,155 $11,931 $11,880 $25,820 $29,700 $120,185 $7,180 $3,190 $15,275 BUDGET ASSIGNMENT GUIDELINES/STEPS 1. Roughly speaking, prepare a budget statement as follows (Fiscal Years operate on a calendaryear basis): You will prepare these tables twice (once for unadjusted FY17 budget and one for adjusted FY17 budget). The % column represents the % of total revenues or total expenses for each line item. REVENUES Object Account Name FY16 % FY17 % Class Amount Amount $ % $ % $ % $ % $ % $ % EXPENSES Object Account Name FY16 % FY17 % Class Amount Amount $ % $ % $ % $ % $ % $ % BUDGET SUMMARY FY 2016 FY 2017 Amt. Change % Change Total Revenue Total Expenses Net Profits You will present a memo back to your boss highlighting your budgets and justification for adjustments. Your report will include two of these budget reports. The first will have the side by side budgets from 16/17 with ONLY the proposed changes outlined in the instructions below. The second budget will adapt the instructed FY17 budget with YOUR suggestions (but still include the FY16 budget). You should highlight changes in the budget document from the unadjusted FY17 and adjusted FY17 budgets. The written justifications will only be needed for items that deviate from the instructed FY17 budget and your proposed FY17 budget. 2. You can expect SALARIES AND WAGES (1XXX) to rise an average of 2.65% next FY. All pay raises go into effect at the beginning of your next FY. 3. Rumor has it that the nephew of the Company owner wants to move to Raleigh and will be assigned as a sales representative to your office at the beginning of FY17. You had better plan on this and pay him the prevailing wage for his position in FY17. 4. I met your delightful administrative assistant when I visited your branch last month. She was concerned that her workload has increased considerably over the past year and was considering looking for another position. I don't want to lose good people like her in our region. I'm sure you will do a better job of managing her time than your predecessor; however, I would like you to hire an additional administrative assistant at the FY16 prevailing wage to assist with bookings and administrative tasks. 5. Inflation has struck again!! Expect all expenditures under SERVICES (2XXX) and SUPPLIES (3XXX) to go up 4.5%. 6. Retrofitting some event spaces to accommodate wheelchairs will allow us to meet ADA requirements. However, it will require special supplies and equipment. Next year, you will need to plan on adding an extra $12,775 to the 3180 expense account to purchase these. 7. Taxes are on the rise! Estimates are that TAXES (4500) to rise 6%. 8. Contracts obtained by your predecessor are in various stages of duration. The Atlantic Coast Conference contract will move to our national office as the men's basketball tournament will be moving across regions to the Northeast branch. Therefore, you will no longer receive these revenues. The contracts with NFL teams will each increase by 6.75% next year. We also obtained a contract from Hendrick Auto Group for $25,000 to coordinate corporate hospitality events at Charlotte sporting events. All other contracts will remain in place and unchanged. 9. There is no Olympic Games in 2017. This event created all of the revenue within the \"Major International Competitions Packages Category\" in FY16. The company will redirect resources to increase package tours for European soccer, which they estimate will generate an extra $91,500 in net revenues and on the Southern Hemisphere Rugby Tour, which they estimate will generate an additional $13,500. This will also cause Liability Insurance (4200) to decrease by 14%. 10. The company expects the same allocation of general revenues (1010) to the branches for FY17. 11. It is expected that any revenues or expenses not explicitly mentioned in these notes will remain the same in FY17. 12. Our company requires revenue budgets to include justification for two types of revenues. a. Programs - Programs are travel packages that are marketed and sold to the general public. Program estimates must include a proposed itinerary, itemized cost estimates (including administration overhead of 2.5% of pretax cost and appropriate sales tax), and per person price. b. Contracts - Contracts are singlepayer revenue items. That is, a single company or organization will pay us for our services (e.g., manage hospitality areas or provide travel services). Contract estimates must provide a general description of the required services we will provide, an estimate of our service fee net of costs, and a justification for the estimate of the service fee. 13. Because we want to ensure that we budget conservatively, the company requires the assumption of no more than a 22% pretax profit margin on all programs. 14. Costs associated with any new sales/revenues should not be entered as fixed or operational expenses in the budget, rather revenues net of costs should be entered in revenues. PRT 466 - Sport Finance and Economics - Spring, 2017 (REFER TO BUDGET DOCUMENT) MEMO TO: Your Name, Manager, Southern U.S. Branch, Experience Group FROM: Michael Edwards, Director, Americas Regional Office, Experience Group DATE: January 9, 2017 SUBJECT: Budget Preparation, Review and Approval Congratulations on your recent appointment as Branch Manager within our Company. We at the Regional Office wish you great success in your new position. As you were made aware while interviewing for this position, budgets serve as a major component of our company's fiscal management plan. A well prepared budget helps our company estimate revenues and expenditures for upcoming fiscal years as well as identify potential sources of new funding. Your appointment to our Southern U.S. Branch Office coincides with our annual planning period for budget development. For your first task as Branch Manager, you will need to prepare a budget for the next fiscal year (FY 17). Until then, you should continue to operate from the current budget, which is attached. Accompanying this memo are various attachments, which should assist you in preparing next year's budget for the Southern U.S. Branch Office of Experience Group. If you should have any difficulties between now and April 6, feel free to contact me. This assignment should have 3 budgets and a written justification: A FY16 budget following the instructions laid out - simply input all the figures into a spreadsheet A FY17 budget making the budgetary changes outlined in the instructions. Hint: This may result in your net profits decreasing (FY17 Unadjusted). A FY17 budget with YOUR suggestions incorporated so that you can meet you goal of increasing net profits by at least 7.75% from FY16. A written justification of the changes you implemented. Hint: Each student will have different suggestions. The trick will be how you justify your suggestions to me and whether they seem plausible. Higher grades will be given to students who provide plausible budget changes with 1) evidence of how they arrived at numbers and 2) reasonable justification for changes. In order to protect your organization from risk, spreading out the budget adjustments will be important. Specifically, you must include adjustments to both revenues and expenses You will need to upload both a Word document that represents your budget report including all three budgets and written justifications as well as a Microsoft Excel file that includes your budget spreadsheet. The premise of this assignment is that you will be responding to this memo with a professional report that highlights the required budgets and your professional judgment on how to meet your branch's financial objectives. Thus, the aesthetic quality of your budget and how easy it is to follow will be important. Example Revenue Adjustment Justification Spring Training Legends Tour To increase revenue by $23,000 and meet the branch's goal of adding a domestic tour program that appeals to senior citizens, we will add a Spring Training Legends tour package. I anticipate that the tour will attract 200 customers in 4 groups of 50 (from different locations) and will net Experience Group a profit of over $100 per customer. The tour program targets the nostalgia and historical aspects of baseball and provides seniors with the opportunity to escape winter weather to sunny Florida for 5 days. Customers will stay in Sarasota, Florida and attend two spring training games in the Fort Myers/Sarasota area (either Twins, Red Sox, Pirates, or Orioles) and one game at the New York Yankees' George Steinbrenner Field in Tampa. Each evening of the trip, at least one legendary baseball player or coach will attend a group reception and provide a brief talk about his experiences in the game of baseball. There will also be a VIP reception at Legends Field which will feature opportunities to interact with former Major League Baseball Players and a panel discussion focused on great stories from their playing days. Customers will also receive a behind the scenes tour of Legends Field. Hotel accommodations will be at selected golf resorts with opportunities for daily rounds of golf, tennis, swimming, and walking groups. Excursions will be planned for outlet mall shopping and floral gardens. Appendix A Program Schedule Day 1 The group will travel to Sarasota to the resort hotel. A welcome reception will be held that evening. Day 2 After breakfast, customers will have the choice to play golf or participate in other activities at the resort or go on a shopping excursion. In the afternoon, we will attend Game 1 in Sarasota/Bradenton and return to the resort for a baseball legends reception and dinner. Day 3 After breakfast and short free time, the group will travel to Ft. Myers for Game 2 followed by a trip the Edison and Ford Winter Estates and floral gardens. We will return to the resort for a baseball legends reception and dinner. Day 4 After breakfast, the group will travel to Tampa and George Steinbrenner Field. The group will receive a behind the scenes tour of the complex and monument park led by a former Yankees player. Following the tour, the group will eat lunch with Yankees major and minor league players in the team cafeteria. We will then watch the game. Following the game, a VIP reception and dinner will be held in the Dugout Club. The event will be attended by at least 10 former major league players. The players will interact with guests before dinner. After dinner, the players will provide a panel discussion about life in the big leagues in their eras. Day 5 After breakfast, customers will be free to play golf or participate in other activities at the resort before departing for home. Expenses Breakfast (4) Lunch (3) Hotel Receptions/Dinners (3) Yankees Reception/Dinner Tickets to games Admission to Edison/Ford Estates Hotel (Double Occupancy, 4 nights) $32 $30 $60 $30 $50 $15 $600 Per person bus cost $150 Sub-Total $967 Administration Fee $25 Total Expense $992 Revenues Package Fee $1,210 Gross Profit $218 Less sales tax (8.5%) $102.85 Profit $115.15 Example Expense Adjustment Justifications Summer Interns In order to minimize our expenses, I propose to change our summer internship program into an unpaid position. Previously in FY 14, we were hiring two interns and paying them $4,200 each. This amounts to $8,400 total. While this may seem like a relatively small expense, it is an expense I believe that we can do away with in FY 15. Most internship positions are unpaid, but they satisfy college course credit. We must change our hiring practices to only hire college students for our internship positions so that we can \"pay\" them with class credit not money. We still intend on hiring the same number of interns and providing the same level of training. Thus, I do not expect service quality to suffer. This adjustment to the budget will save us $8,400 each year. Insurance With the addition of two new programs (one of which specifically designed for minor children), I felt it made sense to assume an increase in liability insurance. As such, based on the percentage of increased revenue from programs (9%), I estimated an equal percentage increase in my adjusted budget for liability insurance ($10,800). Budget Assignment Rubric Student Name: To receive full credit, each component/element must contain ALL information submitted with accurate & excellent detail. Component Possible Points Actual Points Comments FY 16 Budget Accurate FY16 Budget 10 Are your FY16 budget numbers accurate based on the instructions you were given? FY 17 Budget Accurate FY17 Budget 10 Are your FY17 budget numbers accurate based on the instructions (Unadjusted) you were given? FY 17 Budget Realistic Adjusted FY17 Budget 15 Are the adjustments you propose realistic and do they minimize risk to (Adjusted) the company? That is, you've adjusted BOTH revenues and expenses and attempted to balance new revenues and cutting expenses rather than being over-reliant on either. New revenues should be in line with current revenues. Expense cuts should be realistic, have a clear strategy, and not arbitrary. Accomplishes Goals Accomplishes Financial and Branch Goals 5 Your Adujsted FY17 Budget, after any corrections I make for errors in unadjusted budgets, achieves the required profit goal of the company as well as clearly achieves the branch goals. Appearance Professional Appearance of your Budget Tables 10 Your budget report is complete, including a memo cover sheet, all expected budget tables, and justifications (all within the Word Document). The report is neat and professionally presented. All adjustments to the FY17 budget are highlighted. An Excel file with all data is also uploaded. Justification Justification for all revenue and expense adjustments made to the FY17 (Adjusted) budget. Provide evidence of costs and description of new revenue streams per assignment instruction. Revenue justifications are presented in format expected for programs and contracts. Provide justification of expense adjustments that indicate they are realistic and will not negatively impact revenues. Provides some level of support for adjusted figures rather than just being arbitrary. Justifications are thorough and supported. 25 75 0 REVENUES Object Class 1000 Account 1010 Name COMPANY APPROPRIATIONS General Company Appropriation Share TOTAL REVENUES FY16 Amount % $ 356,000.00 100% $ 356,000.00 EXPENSES Object Class 1000 Account Name FY16 Amount SALARIES AND WAGES $ - % FY17 Amount % $ 356,000.00 100% $ 356,000.00 FY17 Amount $ - %