Managing Financial Resources in Sport and Leisure Service Organizations

by Brayley, Russell E.; McLean, Daniel D.

• ISBN13: 9781571674548
• ISBN10: 1571674543
• Format: Paperback
• Copyright: 1999-08-01
• Publisher: Sagamore Pub Llc

Summary

Written with both the United States and Canadian markets in mind, this book provides an excellent economic foundation for today's sport and leisure services managers. Readers will learn the necessary skills to prepare, present, and manage budgets, as well as generate revenues for capital development and daily operations. Become an enterprising custodian of resources by learning to utilize your finances effectively.

Table of Contents

Preface	xii
SECTION A---Concepts and Practices of Financial Management	1	(44)
Economic Principles	3	(24)
Introduction	3	(1)
Supply and Demand	4	(3)
Estimating Supply and Demand	7	(7)
Inflation	14	(1)
Interest	14	(1)
Future Value	15	(2)
Present Value	17	(1)
Depreciation	18	(3)
Economic Impacts	21	(3)
Summary	24	(3)
Financial Management in Public, Private Not-for-profit, and Commercial Sport and Leisure Organizations	27	(10)
Introduction	27	(1)
Public Enterprises	27	(3)
Legislative/Legal Parameters	28	(1)
Social Roles/Expectations	28	(1)
Market Management Techniques	28	(1)
Indicators of Success	29	(1)
Financial Management Opportunities and Challenges	29	(1)
Other	29	(1)
Private Non-Profit Enterprises	30	(2)
Legislative/Legal Parameters	30	(1)
Social Roles/Expectations	31	(1)
Market Management Techniques	31	(1)
Indicators of Success	31	(1)
Financial Management Opportunities and Challenges	31	(1)
Other	32	(1)
Commercial Enterprises	32	(2)
Legislative/Legal Parameters	32	(1)
Social Roles/Expectations	32	(1)
Market Management Techniques	33	(1)
Indicators of Success	33	(1)
Financial Management Opportunities and Challenges	33	(1)
Competition and Cooperation	34	(1)
Summary	35	(2)
Organization	37	(8)
Introduction	37	(1)
Financial Responsibility	38	(1)
Financial Functions of the Organization	38	(1)
Organizational Structures	39	(1)
Director of Finance	39	(1)
Controller (also called ``Comptroller'')	39	(1)
Treasurer	39	(1)
Assessor	39	(1)
Purchasing Agent	39	(1)
Auditor	40	(1)
Organization for Financial Management in the Public Sector	40	(2)
Organization for Financial Management in the Private Nonprofit and Commercial Sectors	42	(1)
Politics and the Financial Management Organization	42	(1)
Summary	43	(2)
SECTION B---Revenue Management	45	(76)
Income Sources	47	(16)
Introduction	47	(1)
Types of Income Sources	47	(1)
Compulsory Income Sources	48	(7)
Types of State and Municipal Taxes	49	(1)
Real Property Taxes	49	(3)
Other Types of Taxes	52	(1)
Other Sources of Compulsory Income	53	(1)
Special Assessments, Dedication Ordinances and Regulations	53	(1)
Licenses and Permits	54	(1)
Federal Government Sources	54	(1)
Gratuitous Income	55	(1)
Earned Income	56	(2)
Investment Income	58	(1)
Contractual Receipts	58	(1)
Partnerships and Collaborations	59	(1)
Revenue Structure Plan	60	(2)
Summary	62	(1)
Pricing	63	(18)
Introduction	63	(1)
Purposes of Pricing	63	(3)
Pricing to Recover Costs	63	(1)
Pricing to Create New Resources (Added Value Pricing)	64	(1)
Pricing to Establish Value	64	(1)
Pricing to Influence Behavior	64	(1)
Pricing to Promote Efficiency	65	(1)
Pricing to Promote Equity	66	(1)
The Appropriateness and Feasibility of Pricing	66	(1)
The Nature of Price	67	(2)
Monetary Price	67	(1)
Opportunity Price	68	(1)
Psychological Price	68	(1)
Effort Price	68	(1)
Approaches to Establishing Price	69	(11)
Calculating Costs for Unit Pricing	70	(2)
Subsidization and Unit Pricing	72	(2)
Other Considerations in Establishing Price	74	(1)
Willingness to Pay/The Going Rate	74	(2)
Sensitivity to Changes in Price	76	(2)
Adjusting Prices	78	(2)
Summary	80	(1)
Grantseeking	81	(20)
Introduction	81	(1)
Why Pursue Grants?	81	(1)
The Grantmaking Environment	82	(2)
The Grantseeking Process	84	(15)
Identifying a Potential Idea	84	(1)
Discovery, Selection, and Contact with a Granting Agency	85	(1)
Searching for Grantmakers	86	(2)
Selecting a Grantmaker	88	(1)
Contacting the Grantmaker	88	(2)
Securing Grant Guidelines	90	(1)
Preparation of the Grant Proposal	90	(1)
Cover Letter	91	(1)
Executive Summary	91	(1)
Statement of Need	92	(1)
Project Description	93	(2)
Organizational Information	95	(1)
Budget	95	(1)
Evaluation Process	96	(1)
Commitment and Capability	97	(1)
Submission of Grant Proposal	97	(1)
Grantmaker's Decision	97	(1)
Grant Administration	98	(1)
Summary	99	(2)
Philanthropy and Fundraising	101	(20)
Introduction	101	(1)
Philanthropy	101	(5)
Why Fundraising is Important	102	(1)
The Role of Fund Development	103	(1)
Why People Give	104	(1)
Charitable Organizations	105	(1)
Fund Development	106	(7)
Fundraising Sources	108	(2)
Goal Setting, Relationships, and the Gift Pyramid	110	(1)
Goal Setting	111	(1)
The Gift Pyramid	112	(1)
Fundraising Strategies	113	(5)
Annual Campaigns	113	(1)
Planned Giving	114	(3)
Special Events	117	(1)
Support Organizations	117	(1)
Summary	118	(3)
SECTION C---Expenditure Management	121	(64)
Accounting/Reporting	123	(12)
Introduction	123	(1)
Stock and Flow	124	(3)
The Balance Sheet	124	(2)
The Income Statement	126	(1)
Internal Control	127	(3)
Petty Cash	129	(1)
Reporting	130	(3)
The Budget Statement	130	(2)
Project/Event Report	132	(1)
Summary	133	(2)
Budget Preparation	135	(28)
Introduction	135	(1)
Budget Processes	135	(27)
What is a budget?	135	(1)
The Budget Cycle	136	(1)
Budget Preparation Cycle	137	(3)
Funds	140	(3)
Budget Presentation Format	143	(1)
Budget Preparation Activities	143	(6)
The Relationship of Strategic Planning to Budget Preparation	149	(1)
Budget Preparation Philosophies	149	(1)
Preparing the Departmental Work plan	150	(1)
Estimating Personnel Service Requirements	151	(1)
Staffing Issues	152	(1)
Determining Salary Costs	153	(3)
Contractual Service Requirements	156	(1)
Materials, Supplies, and Equipment Costs	157	(1)
Reviewing Budget Estimates at the Department Level	158	(1)
Preparing a Simple Activity Budget	158	(4)
Summary	162	(1)
Budget Formats	163	(22)
Introduction	163	(1)
Budget Formats	163	(15)
Object Classification/Line Item Budget	163	(6)
Program Budget	169	(3)
Performance Budget	172	(4)
Running Budget	176	(2)
Zero Based Budgeting	178	(5)
Advantages and Disadvantages of Zero-Based Budgeting	181	(1)
Modified Zero Based Budgeting	182	(1)
Budget Presentation	182	(1)
Summary	183	(2)
SECTION D---Long-Term Financial Planning	185	(38)
Business Planning	187	(16)
Introduction	187	(1)
Format of the Business Plan	188	(14)
Title Page	188	(1)
Front Matter	189	(1)
Executive Summary	189	(1)
The Enterprise	190	(1)
The Industry	190	(1)
Product/Service Offering	191	(1)
Market Analysis	192	(1)
Market Plan	192	(1)
Development Plan	193	(1)
Production/Operations Plan	193	(1)
Management team	194	(1)
Financial Plan	195	(1)
Current Financial Statements	195	(1)
Financial Projections (for new enterprises)	195	(1)
Ratio Analysis	196	(5)
Appendices	201	(1)
Summary	202	(1)
Capital Budgeting	203	(20)
Introduction	203	(1)
Capital Budgeting in the Public Sector	203	(6)
The Capital Budgeting Process	204	(5)
Capital Improvement Revenue Sources	209	(8)
Bonds	211	(3)
Other Capital Improvement Revenue Sources	214	(3)
Capital Budgeting in the Commercial Sector	217	(3)
Decision Processes	217	(3)
Income Sources for Commercial Capital Projects	220	(1)
Summary	220	(3)
Index	223