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The 990's


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Cavaliers

Expenses

Travel

2009: $348,752

2010: $423,721

2011: $416,443

Travel? As in Adolph and the Old Man travelling to shows on a chartered private jet?

I don't think so. Something tells me that this includes Tour travel as well, as in buses and trucks.

This likely includes the bus lease and tractor trailer leases, as well as fuel, staff travel costs, etc.. Didn't they add a third trailer in 2010?

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"Other Expenses" are broken down into 4 categories: Tour Expenses, Camps/Auditions/Recruiting, Uniforms & Supplies, and Rehearsal Sites.

Cavaliers

Expenses

Other Expenses

Tour Expenses

2009: $114,788

2010: $131,626

2011: $108,948

If rolling stock is included in "Travel", then it's likely this is everything else, like food.

Based on how they categorize expenses, food likely comprises the majority of this line item.

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Before we finish up, one final detail about Expenses. Many people compare charitable organizations based on the amount of money that actually gets to the charitable purpose of the organization vs. the administrative expenses used to get the money there. The 990's provide a look at this comparison by requiring expenses to be categorized into two categories, Program Service Expenses and Management and General Expenses.

For 2011, Total expenses were $9,429,827. Of that amount, $6,555,032 (69.5%) went to Program Service Expenses and $2,874,795 (30.5%) went to Management and General Expenses.

In 2010, Total Expenses were $8,875,705. Of that, $5,768,844 (65%) was Program Service and $3,106,861 (35%) was Management and General.

In 2009, Total Expenses were $8,542,134. $5,373,139 (62.4%) were Program Service and $3,168,985 (37.6%) were M&G.

(Sorry, just realized the order by year is reversed from prior posts.)

If this is a representation of efficiency, these numbers look pretty good. Seven percent more of DCI's Revenue was spent on Program Service in 2011 than in 2009, and Management and General expenses consumed less of the Revenue over these three years.

This would be a good thing depending on where you stand and what's behind the numbers. More money going into Program (show) expenses could mean more money is being paid out to corps, or it could mean more money went into show production (like venue costs, etc).

Anecdotally, I have noticed a decline in the number of attendants guarding the entrys to prevent fans from entering or leaving during a show. Those savings in venue costs (if my observation is a true representation) may mean the corps make more but the fans suffer more disruptions, for example.

Without an explanation of Program Expenses there's no way to tell who got the benefit of DCI's greater management "efficiency".

EDIT: If it's reasonable to presume that the corps benefited most from this increase in effeciency, I have to ask: What the heck are they complaining about? With all that DCI does to produce a tour (venue, rights, travel, etc) is it reasonable to think that a "Music in Motion" tour could be produced more efficiently?

I post the above again so we can fairly compare the "efficiency" of Cavaliers' operation in the same format that we consider DCI's and the other corps so far.

Cavaliers

Total Expenses v. Program Service & MGE Expenses

2009: Total Expenses = $1,153,734, PSE = $1.046,875 (90.7%), MGE = $106,859 (9.3%)

2010: Total Expenses = $1,213,648, PSE = $1,105,288 (91%), MGE = $108,360 (8.9%)

2011: Total Expenses = $1,227,237, PSE = $1,108,916 (90.4%), MGE = $118,321 (9.6%)

Wow. Based on what we've seen so far, and from an "efficiency" standpoint, DCI, YEA!, and BD can learn a lot from Cavaliers about how to run a lean and mean organization, IMO.

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I've been following along quietly, but I'd like to give a quick "thanks" to Garfield for this fascinating thread!

You're very welcome, Matt and the others who have PM'd me.

I'd appreciate it if those who are following along rate the thread by clicking on the stars at the top of the first post. That will show how many individuals are following along.

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We've seen so far that Cavaliers run a financially lean, mean Green Machine, but it also appears that they run their budget very close to the edge of profit or loss each year. Post #289 shows that their net revenue improved from 2010 to 2011, but what about their "safety net" in case a catastrophe hits. Is their balance sheet deep enough to bail them out, or are they just one bad event away from financial collapse?

The balance sheet should reveal these answers.

Edited by garfield
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Cavaliers

Assets & Liabilities

The Bottom Line

Assets

2009: $405,325

2010: $330,956

2011: $304,794

Liabilities

2009: $157,547

2010: $150,916

2011: $126,875

Total Net Assets

2009: $247,778

2010: $180,040 (minus $67,738 [27.3%] from 2009)

2011: $177,919 (minus $2,121 [1.1%] from 2010, minus $69,859 [28.2%] from 2009)

Considering that the Cavaliers seem to be very stable in their operations, it seems reasonable by these numbers that $177,919 is a substantial cushion.

But is that really the case? Remember that Assets includes items that may not be liquid or otherwise easily available for the corps to use as a cushion. To really understand the depth of their liquid cushion we need to know what comprises "Assets".

Next, we'll look more closely at assets to see if Cavies have as much of a "safety net" as it these numbers suggest.

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