Future Strategies for EFP – MCI Proposal

Presentation : René Haller 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

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

W hat is a Budget

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.

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

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)

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

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

I mportance of the Budget / Finance within the Congress organization

Importance of the Budget  Budget & Financial Control Client Zone CLIENT  Reporting/ updating lists Client Zone MCI Event Director Registration Project Management Hotels Exhibition / Sponsorship Transport Social Events Creation of registration form Assistance / Staff Room research/ Negotiation Exhibition Layout and Design Flights   Pre-convention Meetings Mailing of form Ground   Action Plans & timelines Dine around Reservation Sales & Marketing Centralization of registrations Deposit payments Proactive sponsorship Excursions Budgeting & Control Special request Rooming lists Themed Dinners 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

S etting the Expectations

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

M anagement of the Budget

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

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

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

L atest Practices

Latest Best Practices Establish Benchmarks

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

% Latest Best Practices % % % % Participant Registration 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) % % % %

R isk Control

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

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

Be Partners Client PCO

T hank you