14

Financial Report

Dave Kruyt

Building upon the financial success of 2003, the Guild and Gallery posted a combined profit

of $12,000 in 2004.

budgeted and actual results, and offers a comparison with the 2003 results.

The following table illustrates the differences between our 2004

2004 % of 2004 % of 2003 % of
Budget Revenue Actual Revenue Actual Revenue
Gallery
Revenue $ 306,834 $ 325,962 $ 307,797
COGS $ 153,350 50% $ 171,322 53% $ 162,064 53%
Gross Profit $ 153,484 50% $ 154,640 47% $ 145,733 47%
Administration $ 120,385 39% $ 139,901 43% $ 128,976 42%
Net Gallery Income $ 33,099 $ 14,739 $ 16,757
Guild
Revenue $ 35,034 $ 52,137 $ 60,104
Expenses $ 51,215 146% $ 54,878 105% $ 47,947 80%
Net Guild Income $ (16,181) $ (2,741) $ 12,157
Total Net Income $ 16,918 $ 11,998 $ 28,314

While 2004 saw higher than expected sales in the gallery, this was offset by increased
administrative and sales costs. The largest factor in the administrative overage is funds
spent on gallery assistants. While there is definitely a relationship with increased sales of
2004, the Board has included a daily staffing schedule in the 2005 budget that will allow
closer monitoring of the gallery’s staffing costs. Other areas that experienced higher than
planned expenses include exhibition expenses, advertising, and our repair and maintenance

budget.

Guild results exceeded expectations both in revenue and the management of expenses.
Made of Clay revenues were up significantly, although expenses followed suit creating a
break-even on the overall financial results for that event. A 77% increase in newsletter
advertising revenue added additional revenue to the Guild, along with a collection of other

smaller items.

In looking at Guild expenses, once the increased costs of Made of Clay are removed, the
overall expenses for the year are substantially under budget. Savings arose in the overall

management of expenses and were also due to a modicum of luck as the budgeted

contingency fund was not needed.

Overall, while falling somewhat short of plan, 2004 was still a successful year upon which
the Guild continues to build. Addressing the identified shortfalls will continue to add to
recent successes. In 2005 we have adopted a very conservative budget which projects a
combined profit of $8,000. If the Guild continues to monitor its bottom line and sales in the
gallery continue to grow with the success of the previous years, we should have no trouble
meeting or possibly exceeding our expectations for the year.

Potters Guild of British Columbia Newsletter

July/August 2005