This document discusses budgeting for events by outlining potential sources of revenue including sponsorships, donations, ticket sales, and fees. It also categorizes expenses as fixed like personnel salaries and transportation or variable like food and beverage. Financial statements are presented as tools to track the financial status of an event, including the balance sheet, income statement, and statement of cash flow.

1. BUDGET
HEVENTSCON
FROM EVENT MANAGEMENT FOR TOURISM, SPORTS, BUSINESS AND MICE
BY M. TUAZON-DISIMULACION
PRESENTED BY MERVYN MAICO D. ALDANA, FACULTY CHTM

2. REVENUES
• These represent the money you receive in exchange for products and/or services.
• The formula for computing revenues is:
• Revenues = Unit Price X Number of Units

3. POSSIBLE SOURCES OF REVENUE
• Sponsorships
• Donations
• Barters
• As placements in your event collaterals
• Ticket sales
• Exhibit booth rentals
• Registration fees
• Entrance fees
• Membership fees
• Sales of merchandising items
• Exhibit booth space rentals
• Concessionaire rentals

4. EXPENSES
• Expenses refer to fees you need to pay and the costs of running the event.
• There are two main types of expenses: fixed and variable.

5. FIXED EXPENSES
• Expenses that remain constant irrespective of changes in quantity.
• Quantity can refer to number of delegates, booths, function rooms and meals.

6. FIXED EXPENSES
• Audio-visual equipment
• Speakers
• Insurance
• Personnel salaries
• Transportation
• entertainment

7. VARIABLE EXPENSES
• These are expenses that vary with changes in quantity.

8. VARIABLE EXPENSES
• Additional site rental fees
• Communications costs
• Room rates
• Décor
• Food and beverage
• Gifts and tokens
• Printing of invites and collaterals
• Advertisements
• Electrical, gas and water charges
• Rehearsal costs
• Shipping, handling, and drayage
• Gasoline
• Office supplies

9. OTHER EXPENSES
• Taxes
• Services Charges and Surcharges
• SC – billed by facilities to offset labor costs and/or equipment maintenance
• Surcharges –imposed to cover extra-ordinary incidents such as rising fuel prices
• Gratuities
• Favors or gifts, given in return for good service
• Attrition Contingency Fund
• Clause in the contract “minimum guaranteed number” to ensure that the company earns the expected revenue
in case the event falls below expected numbers

10. INCOME AND EXPENSE REPORT
• This is the summary of the amount of money received and amount of money used during a specific
point in time.

11. FINANCIAL STATEMENTS
• Financial statements give you the status of your financial activities at a certain point in time.

12. BALANCE SHEETS
• The Balance Sheet shows assets, liabilities, and capital of a business or an event at a specific date. The
assets of a company must equal the sum of its liabilities and equity.
• Formula is:
• Assets = Liabilities + Stockholder’s (Owner’s) Equity

13. INCOME STATEMENT
• An Income Statement show the profitability of an organization at a specific time.
• It reports the revenues and expenses as well as the net income (or net loss) on the period stated.
• A company reports NET INCOME if the revenues are higher than its expenses.
• NET LOSS means that its expenses exceeded the revenues.

14. STATEMENT OF CASH FLOW
• The statement of cash flow reports the changes in cash and cash position due to operating, investing
and financing activities.