WELCOME!

ICYPAA University 2016-2017 Cycle

Session 4 – Sunday, February 5th, 2017

Bid Requirement10: Present detailed proposed conference budgets that take into account variations in facility and AV costs.

How To Participate In ICYPAA University

•  Register by clicking the link sent via email or posted on Facebook.

•  If your computer does not have a microphone or you are having other technical difficulties, you may participate by dialing in on your phone.

•  The dial-in number is located in your registration confirmation email.

•  It is recommended that everyone use a headset.

•  During the webinar you are able to ask questions by typing them out into the questions box, indicating that you have a question in the questions or chat box, or by utilizing the hand-raising function.

•  When asking questions, please identify which committee you are on.

•  Questions will be answered at the end of each section.

•  If a presenter is unable to answer all questions in the time allotted, the presenter will email you an answer to your question.

Introduction To ICYPAA University

•  Bidders and Advisory Council members frequently have informal conversations at ICYPAA, where we discuss several important topics. These conversations are a great way for individuals to gain insight to Council’s experience and expectations. ICYPAA University was created so that this information could become more widely available to anyone seeking it.

•  The Bid Development committee intends to present a series of educational webinars, providing an interactive environment for Bidders and Council members to learn from each other.

•  Each webinar will be recorded and available for viewing on the ICYPAA website. The full s c h e d u l e o f I C Y P A A U n i v e r s i t y w e b i n a r s c a n b e f o u n d h e r e : http://www.icypaa.org/bid-center/icypaa-university.

•  Please understand that the individual presenters are sharing their qualified experience and not representing the Advisory Council as a whole.

•  The full schedule of ICYPAA University webinars can be found here: http://www.icypaa.org/bid-center/icypaa-university.

Personal Introductions: Council members, when prompted, please introduce yourself:

•  First name and last initial only

•  This webinar is being recorded and will be posted to our website

•  Current position on the Advisory Council

•  Which ICYPAA Host Committee you served on

•  What position you served on your Host Committee

Bidders, when prompted, please introduce yourself:

•  First name and last initial only

•  This webinar is being recorded and will be posted to our website

•  Which Bid Committee you serve on

•  Current position on your Bid Committee

ICYPAA University Session 4 Topics

Bid Committee Testimonial: Shawn K. – DCYPAA Chairperson

Bid Requirement #10: Present detailed proposed conference budgets that take into account variations in facility and AV costs.

Bid Committee Q&A: A chance for representative from each bid committee to ask a question on any topic of specific Advisory Council Member(s) in attendance

Announcements:

Bid CommitteeTestimonial

Shawn K. - Chairperson, Desert Cities Young People in AA Bid Committee

Session 4 – Bid Requirement 10

Bid Requirement #10 – Present detailed proposed conference budgets that take into account variations in facility and AV costs.

•  Introduction to Budgets •  Income •  Expenses

Introduction to Budgets: So What Is A Budget?

budg·et (ˈbəjət/) noun

1. an estimate of income and expenditure for a set period of time.

Simply put, your budget is a financial plan for your proposed conference….it should be an accurate reflection of your understanding of the income and costs associated with your ICYPAA

The word “budgets” in the bid requirement points to the fact that you must find a way to show the “variations in facility and AV costs,” either by developing distinct budgets, or by finding a way to clearly display the facility and AV variations within the same budget.

Introduction To Budgets: Why Do We Care About This?

•  In order for ICYPAA to be sustainable it needs to be financially responsible;

your budget shows us a financially responsible ICYPAA is possible in your

bidding area

•  To be a successful host committee you will need to have a detailed

understanding of the “business of ICYPAA” – this requirement demonstrates

that understanding

•  To be a successful host committee your whole committee will need to work

together on the financial side of ICYPAA; this requirement demonstrates your

ability to do that

•  The Host Committee Responsibilities require you to put in place a financial

plan in short order; fulfilling this requirement will help greatly with this, as

many bid budgets become template for Host Committee budgets

Introduction To Budgets: Best Practices for Budgeting

•  Review past Bid Committee and Host Committee Budgets

•  Make sure you work as a team – many people will need to provide input on

your budget – establish a regular cadence of meeting with each other to work

on it

•  When you get new contracts/proposals, make sure you update the budget

•  Get quotes for items in your budget and let us know the source

•  Remember you have many levers to pull when adjusting for income and

expenses – little changes can add up big

•  Document, document, document – show us you have done the homework and

the coordination through your notes

•  Double check formulas and math

•  Reach out to the finance committee early and often with questions and drafts

Introduction To Budgets: Common Issues We See

•  Making too much money

•  Having a loss

•  Not having a budget for each scenario – hotel and A/V

•  Budgets that don’t match contracts or A/V proposals (we

check!)

•  Unrealistic registration numbers or revenue

•  Way too little/too much spent on the program

•  Errors in formulas/calculations

•  Lack of detail

Introduction to Budgets: New Host Committee Budget Template

This is now what is expected of each Host Committee

• This template allows for more of a streamlined system of budgets that aligns with the Advisory Council system of budgets and accounting.

• Bid Committees are free to develop their own budgets, however once awarded the conference, Host Committees are expected to use this budget.

Introduction to Budgets: Income – The Basics The income side of your budget (also called the “top line”) should cover all money you expect to collect during the host year from any source. Where appropriate, income should always include a price and a quantity Common areas of income include: ● Registrations ● Merchandise ● Pre-conference Event Income ● Host Year Event Income ● Administrative Income Tip: Remember the little stuff too (Host Committee Shirts, 7th Tradition Basket etc.)

More About Registration Income

•  Registrations

•  Make sure your budget is clear the number of registrations you expect to get at each price point

•  Be realistic in your registration pricing

•  Factors to consider when estimating attendance numbers:

•  Prior year registration numbers

•  Population of host city/state

•  Strength and size of AA Young People's Community and AA Community in general in city/state

•  Density of local rehabs/recovery centers/sober living homes

•  Proximity and size of other surrounding AA communities: e.g. SoCal to Phoenix

•  Is host city/state a tourism destination?

Tip: Raising registration prices is an easy way to add more income to your budget, however, be careful as it can often

lead to unrealistic registration prices

More About Registration Income Continued: Scholarships

•  Scholarships & Partial Registrations

•  Scholarship funds are donations given to help cover the cost for

those who can’t afford to pay the registration fee.

•  Although it’s important that attendees understand their role in

helping support the conference, no one is turned away for lack of

funds. Including an estimate of expected partial registrations (of

people paying at the door) is a good idea.

•  For example: 100 @ $20, 100 @ $15, 50 @ $10, 50 @ $5 etc.

More About Merchandise Income

•  Merchandise

•  Each type of merchandise (hats, T-shirts, hoodies, mugs, whatever) should have a

separate line item both in the income and expense sections.

•  Have a thorough understanding of past performance of ICYPAA’s so your numbers

have back-up

•  Make sure you take into account the local sales tax laws and regulations and clearly

document collection and payment of sales tax

Tip: Merchandise income will probably be your second largest source of income. Small changes to the

pricing of merchandise can have big impacts on your overall budget

More About Pre-Conference Event Income

•  Pre-Conference Event

•  The Pre-Conference Event should be priced to break even at a minimum

self-supporting; it does not need to make a profit.

•  The all-in cost of venue, transportation, insurance, F&B (if any) and

complimentary tickets (if any) should be considered when estimating ticket

pricing.

•  The average range of attendees over the past several years is between

200-400 – the price point and attractiveness of the event will affect attendance

More about Events Income

•  Include separate line items for each individual event – drill down to as much detail as you

can.

•  Events generate additional cash flow for your host committee

•  It’s ideal that the events be self-supporting, but they are also important outreach

opportunities.

•  Remember to factor in the cost of event insurance. Some venues require you carry at least

$1,000,000 in general liability coverage.

•  Your bid committee’s general history with events can serve as a good guide for budgeting

for events

Tip: Event income can help the “top-line” of the budget, however be careful not to anticipate more than your

historical event performance says you will do

More About Administrative Income

•  Advisory Seed Money

•  Council gives $2,000 to the new Host Committee to help kick-start their new endeavor.

•  The seed money is returned to Council at the end of the Host Year so the budget must show

this amount in both the income and expense sections.

•  7th Tradition

•  ICYPAA Host Committees are self-supporting. 7th Tradition money is often used to cover

rent costs and/or refreshments for business meetings. Unused money from 7th Tradition can

be rolled into the general fund and used for things like scholarships, etc.

•  Bid Committee Carryover

•  Some Bid Committee agree to carry over a certain portion of their balance to the host

committee if awarded. If this is the decision of your bid committee you can show the

estimated amount carried over as income in your budget

Tip: If you plan on a “bid committee carryover, make sure the amount is in line with what your bid committee

actually has in the bank, based on Requirement 2

More About Banquet Income – A Thing of the Past?

•  Banquets have not been a common part of the program at recent ICYPAAs because they

are often costly and have faded in popularity

•  Some time ago, banquets would draw 600-800 attendees, but the last few years have seen

a drop off to numbers like 150-300.

•  Hotels will usually require some sort of F&B minimum as a revenue source for the

property, so if you’re not having a banquet, consider how you will meet the F&B.

•  Work closely with your facilities team to know what to anticipate.

•  Make sure your budget explains how you will cover any F&B minimum

Tip: Something to keep in mind, you can have different sources of income that the usual ones, just make sure

we understand them and you know how realistic they are!!!!

Introduction to Budgets: Expenses – The Basics The expense side of your budget should cover all money you expect to spend during the host year both to operate your committee AND to host your conference. Where appropriate, expense lines should always include a price and a quantity Common areas of income include: ● Admin Expenses ● Program and Entertainment ● Registration Expenses ● Hotel Expenses ● Outreach Expenses ● Merchandise Expenses ● Event Expenses ● Miscellaneous Expenses Tip: Committees often look to increase income to balance budgets, but small adjustments to many expense lines can also add up quick

More About Administrative Expenses

•  Advisory Operating Expense: approx. $18-$20K per year

•  The exact amount will be set by the AC based on expenses for the year

•  Seed money given to the Host Committee will need to be returned to the

Advisory Council

•  Merchant account fees: merchant fees are approx. 3-3.5% of your total

registration income

•  State filing fees/permits

•  Make sure this matches your tax research

•  Copies: meeting agendas, minutes, formats etc. We’re in the future, be creative

with non-paper based solutions if you can

More About Program & Entertainment Expenses

•  Programs: conservative budgeting requires over-estimating the amount of programs and underestimating registrations

•  Audio/Visual: provide detail from your AV quotes

•  Entertainment: provide detail for each entertainment event

•  Other events like Yoga, Game Night, etc. may have expenses

•  Speaker/special guest travel, meal stipend, gifts for main speakers, GSO, Grapevine:

•  GSO/Grapevine attendees often plan travel last minute, so their travel costs may be higher

•  Big Books for sobriety countdown

•  Hard of hearing/language interpretation services

•  Signage

•  Dropbox or other cloud account for sharing speaker files

•  Tip: Make sure that you are budgeting expenses to cover the program that you are proposing in your other bid requirements

More About Registration Expenses

•  Laptops/desktop rental

•  Paper Registration forms: nearly all registrations are done online these

days, but some paper forms should be available

•  Badges: Name tag cards, name tag holders/lanyards, pens/markers for

name tags, stickers/ribbons, reg bags

•  Intergroup/Central Office/Area/GSO mailings: stamps, copies

envelopes etc.

Tip: Budget for more registration items than your budgeted attendance to ensure extra

for registration growth

More About Hotel Expenses

•  Deposits: if you have a hotel master account, they may expect a deposit the day or week of the conference

•  Security T-Shirts

•  Walkie-Talkies

•  Decorations

•  Gratuities: many of our guests could be staying at a large hotel for the first time; for this reason the committee will often tip bellmen, housekeeping staff, valets, etc. beyond what our attendees might tip. It is not unusual for this number to be several thousand dollars

•  Hospitality Room

•  Food

•  Games

•  Other stuff?

•  Internet Access

Tip: It’s good for the person writing the budget to understand the hotel contract and any additional costs in it

More About Outreach Expenses

•  Business Cards

•  Banners

•  Travel: committees usually establish a set budget and agree on how to divide up the cost per trip and/or per outreach committee member

•  Fliers

•  Mailings

Tip: Your outreach budget is a good place to think about what works best in your area for outreach. Be creative and don’t just cut and paste

Host Committee Budget Template

TEXAS PROPOSED OUTREACH EXPENSES

PHOENIX PROPOSED OUTREACH EXPENSES

FLORIDA PROPOSED OUTREACH EXPENSES

BR 10 Section 8: Merchandise Expenses

•  Each type of merchandise should have a separate line item both here and in the income section.

•  T-Shirts

•  Hoodies

•  Hats

•  Mugs/Tumblers/Etc.

•  Other

•  Sales Tax

Tip: Do not forget about sales tax and make sure this matches your BR #7

BR 10 Section 9: Event Expenses

•  It’s typically not necessary to have a detailed budget for each event

•  The budget should take into account historical costs of your committee’s events

•  Some typical event expenses are: • Space Rental • Insurance • Beverages/Food • Decorations • Entertainment • Supplies

More About Miscellaneous Committee Expenses

•  Every sub-committee previously mentioned should have a Miscellaneous Line Item because unforeseen things do come up (usually somewhere in the few hundred dollar range).

•  Some of your sub-committees and officers might need budget lines to do the jobs that your ICYPAA asks of them. (Allocating a few hundred dollars in advance to these sub-committees is a good idea)

• Graphics • Literature • Secretary • PI/CPC • Archivist • Al-Anon/Alateen

Session 4 – Bid Requirement 10

Any Questions?

Bid Committee Q&A

Please select ONE representative of each committee to ask a question of specific Advisory Council Member(s) on any topic *Can also choose to ask a specific Bid Committee to ask. It is that Bid Committee’s discretion as to whether to respond.

Announcements: BR/Bid Book Early Review

Submissions •  DO NOT WAIT until an early review deadline to submit Bid

Requirements for feedback. Send them to us as you complete them.

•  Only turn in Bid Requirements that are complete and ready for review.

Avoid sending multiple drafts.

•  Waiting until the early review deadline to submit bid requirements for

review compromises the Advisory Council’s ability to thoroughly

review your work and may mean that you won’t have enough time to

implement feedback prior to the final deadline.

CHECK OUT THE ICYPAA BLOG & SHARE YOUR EXPERIENCES ON ANY SOBRIETY RELATED TOPIC THAT MAY BE HELPFUL TO

ANOTHER YPAA! SUBMIT YOUR BLOG POSTS, WE WOULD LOVE TO HEAR FROM YOU!

BIDDEV@ICYPAA.ORG

ICY U Session 5 Testimonial Drawing

Thank you for attending ICYPAA University Session 4!

This webinar has been recorded and will be available on the ICYPAA website for viewing along with a PDF copy of the presentation material.

We look forward to your continued participation with ICYPAA University!

•  Our next webinar will be Session 5: Bid Requirement 11 – Hotels March 5th @ 1:00 PM PDT / 2:00 PM MDT / 3:00 PM CDT / 4:00 PM EDT.

•  If your committee would like a private, one-hour webinar meeting with available Council members, please contact us at biddev@icypaa.org with your requested dates and times (no individual webinars close to ICYPAA) We will do our best to accommodate. There is a limit of one individual webinar per Bid Committee per year.

Feel free to contact us with any further questions or comments:

•  Subcommittee emails: http://www.icypaa.org/bid-center/bid-related-questions

•  Individual emails: http://www.icypaa.org/council/roster