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"And now, please welcome to the field, from Denver, Colorado...

The Blue Knights!

(an Ascend Performing Arts Production)

(Reminder: Please rate this thread by clicking on the stars at the top of the page.)

Edited by garfield
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The Blue Knights

Revenue, Expenses, and Assets

The Bottom Line

Total Revenue

2009: $858,906

2010: $1,118,324 (plus $259,418 [30%] from 2009)

2011: $763,781 (minus $354,543 [31.7%] from 2010, minus $95,125 [11%] from 2009)

Total Expenses

2009: $838,311

2010: $1,184,432 (plus $346,121 [41.3%] from 2009)

2011: $816,070 (minus $368,362 [31%] from 2010, minus $22,241 [2.6%] from 2009)

Net Revenue

2009: $20,595

2010: ($66,108) a loss

2011: ($52,289) a loss

Net Assets

2009: $73,584

2010: $7,477

2011: ($44,812) a negative

Personal observation: This appears to be another example of a drum corps that has a terrific Revenue year (2010 in this case) but, instead of holding the line on spending (and building a cushion for the future), it spends all - plus more - of the increased revenue.

While our deeper look may explain that this was an unusual circumstance, it makes little sense to me, especially in hindsight, that there was no restraint in spending.

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The Blue Knights

Statement of Program Service Accomplishments

(Only the drum corps is listed in each of the three years)

2009: Revenue: $586,257

2010: Revenue: $928,251 (plus $341,994 [58%] from 2009

2011: Revenue: $707,869 (minus $220,382 [23,7%] from 2010, plus $121,612 [20.7%] from 2009)

2009: Expenses: $576,250

2010: Expenses: $966,272 (plus $390,022 [67.7%] from 2009)

2011: Expenses: $693,271 (minus $273,001 [28.2%] from 2010, plus $117,021 [20.3%] from 2009)

Personal Observation: So while 2010 Program Service Revenue was up an impressive 58%, BK spent nearly 68% more in Program Service Expenses. In 2011 it appears they reversed this trend and spent less on Program Expenses than Program Revenues brought in. But this, combined with other expenses, left them eating into their assets in 2011.

I'm hopeful that the details will explain the spending v. revenue but, so far, I just don't get it.

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"And now, please welcome to the field, from Denver, Colorado...

The Blue Knights!

(an Ascend Performing Arts Production)

(Reminder: Please rate this thread by clicking on the stars at the top of the page.)

If I recall correctly the Blue Knights were originally organized (several decades ago) as a Boy Scout chartered group; has that affiliation gone the way of the dodo bird or is that still the base underlying foundational status of the Ascend group.

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The Blue Knights

Statement of Program Service Accomplishments

(Only the drum corps is listed in each of the three years)

2009: Revenue: $586,257

2010: Revenue: $928,251 (plus $341,994 [58%] from 2009

2011: Revenue: $707,869 (minus $220,382 [23,7%] from 2010, plus $121,612 [20.7%] from 2009)

2009: Expenses: $576,250

2010: Expenses: $966,272 (plus $390,022 [67.7%] from 2009)

2011: Expenses: $693,271 (minus $273,001 [28.2%] from 2010, plus $117,021 [20.3%] from 2009)

Personal Observation: So while 2010 Program Service Revenue was up an impressive 58%, BK spent nearly 68% more in Program Service Expenses. In 2011 it appears they reversed this trend and spent less on Program Expenses than Program Revenues brought in. But this, combined with other expenses, left them eating into their assets in 2011.

I'm hopeful that the details will explain the spending v. revenue but, so far, I just don't get it.

A couple of thoughts about information being presented -

Gross receipts does not really tell much and can just confuse the reader. For example an organization had $5,000,000 in bingo receipts which would be included in gross receipts and does not provide meaning. Meaning comes in the statement of revenue where the net proceeds of bingo are calculated.

In my opinion, pulling data from Part III - Statement of Program Service Accomplishments is not a very good place to examine because often one does not really know where the data in this section comes from.

I think (just took a quick look so someone can double check this) revenue and expenses were up in 2010 because DAR income was not netted and listed in revenue but an income line item was listed in revenue and and expense line item was listed in functional expenses. The change in report method overstates both revenue and expenses by 244,890.

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The Blue Knights

Revenue, Expenses, and Assets

The Bottom Line

Total Revenue

2009: $858,906

2010: $1,118,324 (plus $259,418 [30%] from 2009)

2011: $763,781 (minus $354,543 [31.7%] from 2010, minus $95,125 [11%] from 2009)

Total Expenses

2009: $838,311

2010: $1,184,432 (plus $346,121 [41.3%] from 2009)

2011: $816,070 (minus $368,362 [31%] from 2010, minus $22,241 [2.6%] from 2009)

Net Revenue

2009: $20,595

2010: ($66,108) a loss

2011: ($52,289) a loss

Net Assets

2009: $73,584

2010: $7,477

2011: ($44,812) a negative

Personal observation: This appears to be another example of a drum corps that has a terrific Revenue year (2010 in this case) but, instead of holding the line on spending (and building a cushion for the future), it spends all - plus more - of the increased revenue.

While our deeper look may explain that this was an unusual circumstance, it makes little sense to me, especially in hindsight, that there was no restraint in spending.

See my note above on why 2010 revenue and expenses seemed to be up in 2010 but really weren't.

Holding the line on spending and building a cushion for the future is very challenging for a drum corps to do. Most run hand to mouth with most expense line items being difficult to cut without changing the program (shorter tour, shorter move-in, change staff to reduce staff expense - product suffers, etc.). Many expenses usually are increasing (gas prices, charter bus fees, airline travel, food price increases, etc.) .

Don't see how you can make the statement "...that there was no restraint in spending." Pure conjecture on your part.

Edited by btracht
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