1. Future Strategies for EFP – MCI Proposal

2. 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

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
 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

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 % % % % 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) % % % %

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