tower theatre

NOTES ON BUDGETTING

Issue 5 : December 2011

 NOTES ON BUDGETTING

Who Are These Notes For?

These notes are intended to help anyone responsible for expenditure on a production.

How Do We Set A Budget?

As we all know, the Tower is always short of funds. On the other hand we all want to put
on our productions in the best possible way, and this will always involve spending money.
The production budget is the system we use to decide how much money to spend on a
particular show. It is a common mistake to assume that there is a fixed, pre-determined
amount available for each show. There is not. If there were, it would encourage people
to spend this amount whatever the real requirements were. This would lead to too much
money being spent on some shows, and too little on others. Instead, we expect each
production to decide what it wants to do and prepare proposals accordingly. The
production team (director, designer, stage manager etc) can then set their own priorities
and in their joint artistic and commercial judgement use money to maximum effect on their
show. The aim is to help everyone involved to put on the show in the way they want and
to help everyone involved to put on the show in the way they want and to encourage
creative ideas. Obviously, there is a limit to what the Tower can afford, and at times the
Artistic and Financial Directors will have to say no. But in general, production teams are
very cost-conscious. At the budget production meeting your proposals will be brought
up before one of the Artistic Direction Team (the Artistic Director or one of the assistant
ADs) attending your meeting and your budget will be determined.

How to organise your budget

Every production should have a formal budget meeting. This should be held before
any money needs to be spent, but after initial design ideas have been agreed. About
6 weeks before the show's opening is probably about right. The director or stage
manager should call the meeting, inviting set, costume, lighting and sound designers, the
show's publicity co-ordinator and the musical director if there is one. Representatives of
the Technical Group will come if invited; their main role is to provide advice on the cost of
materials and various aspects of safety. One of the Artistic Direction team must also be
invited. The meeting is an important part of the process of putting a show on; don't try to
skimp the time by trying to fit it in an odd half-hour before a rehearsal. Allow at least 1½
hours.

At the meeting a Budget Form should be filled in and signed off by the Artistic Direction
Team member present (sample of form is at the end of these notes).

Account Suppliers

No account supplier should be asked to supply goods without an order number

reference. Order forms are in the office and bear the appropriate number on them. A
show reference should also be quoted.

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What to put in the budget

1. The basic list – A budget form should be included in your stage managers pack. If
not, please request from your Technical Co-ordinator.

Most shows will need to consider the following:

Set materials
Furniture hire
Properties (don't forget food and drink)
Costume materials
Costume hire
Lighting consumables (gel, gaffer tape etc)
Sound hire
Special Publicity and Photographs
Transport costs to and from the venue and Ironmonger Row

For hired items, don't forget the cost of delivery and collection if you are unable to do
this yourselves. Don't include VAT in any of your figures.

2. What you may need to consider on some shows

These items will not be a cost on every show, but if needed they must be included in
the production budget

Hire of scripts, scores or band parts

Musicians expenses
Hire of outside rehearsal space
Special effects (pyrotechnics etc)

3. What at you need not worry about

The following items are decided at the start of the season and so needn't be
considered at the Production Budget meeting :

Play royalties
Venue Hire costs
Programmes

The following items are charged to the overall theatre funds, and they are therefore
not part of the show budget

Performing Rights Fees

Electricity, gas, water
Replacement light bulbs for our standard stock equipment
Recording tape
Rubbish removal costs
Basic publicity
Insurance
VAT

4. How much money is too much?

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 As noted above, there is no pre-determined figure for the total budget and every effort
should be made to make it as small as reasonably possible.

Popular misconceptions

A. Buying for stock on a maintenance budget

Every so often someone has the idea that we should 'invest" in materials for stock that
can be charged to an overhead maintenance budget, so that the show does not bear the
cost. This is not permitted because

a) There is no actual saving - the Theatre has to pay the bill whatever the budget it is
allocated.
b) We have no storage space for stocks.
c) Past experience suggests that the one show's idea of a good investment may not
be another's - for example, one colour lighting gel may not ever be used by
another designer, and therefore buying for stock is a complete waste.

If you need something for your show, say so and ask for the money; don't try to hide it.
However, if you can share the cost with another show because they want the same as
you, then by all means go ahead and split the bill.

B. The Stage Manager's float is the props budget

Sometimes Stage Managers are given a float to cover incidental cash expenses. Mostly
these tend to be for props but the money is for all expenses. The float is just part of the
total budget; the props budget may be less than or greater than the value of the float
depending on the show.

Accounting for your expenses

Whether you have a float or not, it is essential that you keep all the receipts and a set of
accounts. Each Stage Manager is obliged to personally account for the money spent,
paying back the Company where appropriate, or requesting extra money if the float has
been exceeded.

A float will not be issued until the overall production budget is agreed.

The accounts, whether written or typed, should be set out as shown overleaf.

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 ACCOUNTS FOR (XXXXXXX)
(date) to (date)

Receipt No. Date Item Amount VAT (Y/N)

Opening Balance £abc.00

1. xxxxx - £ xx.xx
2 etc.

Closing Balance £ xyz.xx

Points to remember are : -

i. All receipts should be numbered on the accounts with corresponding numbers on

the receipts themselves.
ii. Items on which VAT is charged and where the VAT number is shown on the receipt
should be identified on the accounts so that the VAT may be claimed back. (This
excludes food and other VAT exempt items.)

The following items cannot be claimed for :

i. Scripts
ii. Haircuts
iii. Personal travel expenses (except for petrol for van hire)
iv. Teas (food, coffee etc other than where required as a prop) - the cast and crew
must pay for these themselves.
v. Clothing - unless Wardrobe has specifically authorised a member of the cast to
purchase an item of clothing, etc, the costs are not recoverable. Cast members
are expected to supply their own tights, knickers, hairpieces, hairnets, modern
accessories, etc.
vi. If in doubt as to whether an item is recoverable, check first with a member of the
Artistic Team.

Notes prepared by Laurence Tuerk

November 1991
Fourth Revision, December 2011

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 PRODUCTION COST ESTIMATE FORM
PRODUCTION:
PRODUCTION MEETING DATE
DIRECTOR
STAGE MANAGER
ARTISTIC TEAM REP

Estimated Max Cost Actual Cost

Set Construction:
Materials
Paint
Furniture Hire
Material Hire
Transport Hire
Lighting/Video:
Consumables
Hire
Sound:
Consumables
Hire
Wardrobe:
Materials
Hire
Cleaning fee 30.00
Music:
Fees
Hire
Stage Management:
Props Purchase
Props Hire
Sundries

Hire of rehearsal space

FOR COMPLETION BY
OFFICE:
Venue rent
Royalties
Additional Publicity
Total

APPROVED BY

DATE
EXPENSES COMPLETED AND
CONFIRMED BY OFFICE ON:

NOTES ON COMPLETION

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ALL REQUESTS FOR REIMBURSEMENT OF EXPENSES MUST BE RECEIVED IN
THE OFFICE WITHIN TWO WEEKS OF THE END OF THE RUN.

FAILURE TO SUBMIT THE ESTIMATED PRODUCTION COSTS IN ADVANCE WILL

RESULT IN DELAYS IN PAYMENT OF EXPENSES.

ALL COSTS MUST INCLUDE VAT AND A VAT ESTIMATE MUST BE PROVIDED FOR
EACH EXPENDITURE.

EACH SHOW MUST HAVE A PRODUCTION MEETING WHERE ALL COSTS ARE
CONSIDERED AND ESTIMATED.

THE ATTACHED FORM IS COMPLETED BY DIRECTOR/STAGE MANAGER EITHER AT

OR BEFORE THE PRODUCTION MEETING LIAISING WITH THE AT REP.

A COPY OF THE COMPLETED FORM SHOULD BE SENT TO THE OFFICE

FOLLOWING THE PRODUCTION MEETING AND TO THE COMPANY COMMITTEE
VIA THE ARTISTIC TEAM REP.

ANY “EXTRAORDINARY” ITEMS THAT MAY BE HARD TO SOURCE OR EXPENSIVE

SHOULD BE IDENTIFIED EARLY ON AND APPROVED

A BUDGET OF £450 IS ALLOCATED, IN THEORY, FOR EACH SHOW, HOWEVER, ANY

SAVING ON EXPENDITURE WOULD BE APPRECIATED

ANY EXPENDITURE PUTTING THE SHOW BUDGET ABOVE THIS AMOUNT MUST BE
APPROVED IN ADVANCE

UNAPPROVED EXPENSES WILL NOT BE REIMBURSED.

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