Page 122 - DMGT304_EVENT_MANAGEMENT

Unit 5: Financial Management

Self Assessment Notes

Fill in the blanks:
1. The ............................ is a projection (forecast) of the income and expenditure that the event
will incur based on plans made and information gathered.
2. The preparation of a budget is an essential part of ............................
3. The event budget should be set so that if sponsorship and/or government funding is not
............................ the event does not have to be canceled.
4. It can be difficult to obtain money from spectators in circumstances where there is
............................ restriction of access.
5. ............................ events are a service provided and it is reasonable to suggest therefore that
all basic costs of the event should be covered by participant fees.

5.4 Typical Event Costs

Events costs will depend on the scale and type of event. Not all the categories stated in the table
5.2 will apply to every event.
Table 5.2: Categories of Event Costs

Travel and Costs associated with officials needed to run the event may have to be
Accommodation borne by the event organisers. Event participants are generally
responsible for their own travel and accommodation costs. In minor or
local events travel and accommodation costs are unlikely.
Trophies, The cost of medals, trophies and other awards requires detailed
Awards knowledge about the number of competitors, the categories of divisions
of the competition and the format of the competition.
Salaries Applies only events are organised by professional staff.
Postage and Events usually require considerable communications with participants
telephone and the event management team.
Stationery and Special event stationery may be printed but otherwise there is always a
Photocopying lot of photocopying and usage of organisation letterheads to write
correspondence.
Medical Fees Events require persons with at least First Aid training to be in
attendance. Larger events may also warrant the employment of a
doctor and physiotherapists.
Venue Hire A critically important aspect of the budget. Information about the
probable cost of the venue needs to be obtained as early as possible.
Beware that there some hidden costs such as security and supervision
costs, and heating and lighting costs.
Insurance Additional insurance can be taken out to cover risks of injury and/or
financial losses associated with events.
Printing Event programmes, posters, fliers and other promotional documents
may need to be printed - especially where quality and colour is required.
Promotion Expenditure on promotion may be considerable where a significant
proportion of the event revenue is likely to be earned through
spectators. Promotion covers items such as advertising, give-aways,
costs associated with promotional events and sponsors' signage.
Equipment Hire Includes equipment directly used by participants in the event and also
any equipment used by the event management staff including sound
systems, computers, mobile phones, two way radios, etc.
Transport Includes costs of transporting equipment and hire of buses.

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