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:
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
International Fest Canada Day
Honorarium Nil 13,340.00
Accounting and legal 470.80 5,140.83
promotions 10,935.91 10,935.91
Bad debts 2,088.50 Nil
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
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
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)