Morning Production Budget Planning Afternoon Managing your Team

Morning: Production Budget Planning Afternoon: Managing your Team

Scheduling exercise What makes a good schedule?

Budgeting Defining the budget In a producing house there may be an annual budget for these areas, which the Production Manager divides up throughout the year. The production Manager needs to decide whether the breakdown in the outline budget is correct for each production , and to adjust accordingly.

Budgeting Defining the budget In Commercial Theatre the producer will set the overall budget. In simple terms the producer will assess: • Potential Income • minus Expenditure • = Potential Profit The PM often assists the producer at Concept Stage to set the budget paramenters.

Budgeting Staging Expenses These are the areas dealt with by the Production Manager: The Production Budget This is split into three main areas; • Production Materials • Fees and salaries • Logistics

Budgeting Staging Expenses These are the areas dealt with by the Production Manager: Running Costs Again split into three main areas; • • Fees and salaries Maintenance & Renewals Consumables Logistics

Defining The Production Budget Receive a figure from the producers for the production budget and production running costs Refine this figure after the concept meeting Set provisional budgets for each department Calculate the contingency on the production

Review The Budget Receive detailed costings from each department It may be necessary to Cost Evaluate to get the Budget within the set parameters. Publish confirmed budgets to each department

Tracking Expenditure Managing the Budget Establish Financial policy Develop Systems Induction and awareness across all departments

Managing the Budget Paperwork Budget Petty Cash Purchase Orders Contracts

Procurement of show goods and services can by judged on: Managing the Budget • Cost and Value for Money • Quality of goods or services • Evaluation of Technical response • Prompt delivery • Sustainability • Relevant experience • Corporate and financial credentials

Managing the Budget Procurement Responsibilities Production Managers are responsible for: • Ensure procurement methods are followed accordingly by all departments • Input into sourcing suppliers • Responsible for clearly defined Scope of Works and Tender Specifications

Managing the Budget Procurement Responsibilities Production Managers are responsible for: • Review Quote &Tender Returns to ensure the brief and scope of works are met • Manage the contractor or service provider delivery of work • Responsible for signing off deliverables and liaise with Finance regarding payments and final settlements.

Managing the Budget Types of Contracts Employment contracts – For individuals such as performers and production personnel Including term of contract, Job Description and specification, remuneration, hours of work, tax & social security liabilities, insurance details.

Managing the Budget Types of Contracts for Services – Goods and Services Including clearly defined • Scope of services, • Technical specification, • Insurance liabilities, • Payment schedules, • Change Control, • Penalties.

Managing the Budget Types of Contracts Framework Contracts – Goods and Services Framework agreements can be used where the scope of services or bill of quantities are not yet defined or currently provisional based on further design or production development.

Managing the Budget Monitor and Review Weekly meetings with HOD’s to track expenditure Ensure all departments are following financial procedure Update budget and review regularly to pre-empt financial issues

Managing the Budgets (Post-Performance stage) Budget reconciliation Finance de-brief and box office reconciliation