More bad financial news for Langley Canada Day event

Organizers have fallen $12,000 behind on their bills; Township defers decision on $10,000 bail-out

A detailed financial report shows the combined Langley International Festival and Canada Day celebrations lost money because the Canada Day event came up $37,783.12 short.

The International Festival actually ended up in the black, posting a $3,268.29 surplus.

The revenue and expenses statement was included in a report to council by Township recreation, culture and parks director David Leavers (and can be viewed at langleytimes.com).

The Oct. 23 report said the group that operates the two events as two different societies has fallen behind on its bill payments as a result of the shortfall.

“Staff have the details of how much is owed, and to whom, and are advising council that this outstanding amount exceeds $12,000,” the Leavers report stated.

“Having analyzed this detail further, it would seem that an immediate influx of cash in the amount of $10,000 is required by the two societies in order to meet their most immediate obligations.”

The Leavers report went on to say Township council could give the money to the Langley International Festival Society and  the Langley Canada Day Celebrations Society in the form of a one-time grant “to allow them to meet their immediate financial obligations and continue with plans for 2015.”

Leavers added members of the two societies would be attending the Monday Oct. 27 meeting of council, the last meeting of Township council before the municipal elections.

“If council chooses to add this as an “other business” item, it would be most appropriate to do so at the 7 p.m. [public] meeting.”

However, there was no discussion of a bail-out during the public council session of Oct. 27.

The matter has been deferred until at least Dec. 15, when Leavers said the organizers have asked to appear before council as a delegation.

At that time, he said, “council should anticipate a request … for a repayable loan early in 2015 to assist them with the start-up costs that will be required prior to next years’ two events.”

Staff expect the overall request will be for “approximately $24,500.”

Leavers also noted that while the international festival is in the black, “ … it has a number of outstanding liabilities that it is carrying as a result of their limited cash flow position.”

The financial crisis was disclosed at the Sept. 29 council meeting by Shar Dubas and Bal Sabharwal of the Langley International Festival Society, which took over the duties of the Langley Canada Day Celebrations Society in January of this year.

They blamed the problem on a $35,500 Canadian Heritage grant that was approved, then withdrawn because the combined Canada Day and multicultural festival was supposed to run three days, not two.

At the time, councillors said they needed more details about the finances.

 

Revenue and expenses statement (09/01/2013 to 08/31/2014) for the Langley International Festival Society and  the Langley Canada Day Celebrations Society:

 

Revenue:

International Fest             Canada Day

Sales  34,425.80            214.29

Donations        Nil        200.00

Sponsorship    17,750.00    12,750.00

Fundraising    5,704      Nil

Grant  15,005.00      28,500.00

Member fees    152.12    Nil

Other   1,180.24    321.79

 

Total revenue 74,217.62   41,986.08

 

Expenses:

International Fest           Canada Day

Honorarium    Nil        13,340.00

Accounting and legal  470.80     5,140.83

Advertising and

promotions    10,935.91       10,935.91

Bad debts      2,088.50       Nil

Business fees

and licenses    157.53        20.48

Expenses – prior year    682.14       Nil

Courier and postage    55.63      Nil

Credit card charges    404.20           Nil

Commissions  3,988.75       3,968.75

Amortization Expense        1,545.00         Nil

Equipment rental   21,789.63     21,286.64

Grant writing   900.00       Nil

Insurance    2,285.00    400.00

Interest and

bank charges  946.10       142.97

Office supplies    80.71      Nil

Other expenses   2,837.80    1,008.09

Prizes   2,500.00     Nil

Rent      2,750.00      1,824.00

Security    5,793.14    Nil

Subcontract   1,150      2,300

Supplies   1,664.15       Nil

Telephone  514.50    302.43

Meals and

entertainment  6,235.00    Nil

Volunteer expenses        901.98     Nil

Web maintenance    1,657.14      1,340.54

Fireworks    Nil    4,449.40

Rides    Nil        4,200.00

Safety     Nil           7,889.30

Shirts    Nil            1,220.06

Total expenses 70,949.33         79,769.20

Bottom line    3,268.29 (surplus)      27,783.12 (loss)

 

 

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