TC 842

Budgeting

Budgeting

• Producers do it--but have little or no training in it.

• predict the future• world of projections• in business, budgets are accepted way

of life • things more predictable and

standardized than in production

Media Budgeting

• how do you value creativity• attempt to impose order on

essentially disordered process• difficult to be precise• frequently done backwards--ought

to cost $$$$, make it fit• necessary in all production

Bertold Brecht

• Ah how sorely they're mistakenWho think that money doesn't countFruitfulness turns to famineWhen the kindly stream runs out

Operating Budget

• often flexible in businesses as long as stay within the total amount- but less so in non-profit organizations

• much estimation in budgeting– predicting prices (market forces),– salaries (union contracts), – success of a product (whimsy of consumer)

• profits depend on keeping within it• Department heads must work within

Operating Budget

• allocation to the entire department• total money for an entire fiscal yea

– Equipment travel, phone, office supplies, subscriptions, special events, supplies

– Salaries– overhead (lights, heat, corporate overhead

charged)– maintenance and repair, rentals, licensing

fees, instructional materials

Project Budget

• partial charge back– contracting department pays for extras only– tape, outside sources (writers, graphics,

shooters, music, etc)– the out of pocket costs. – This is most frequent arrangement--PTV

Project Budget

• Total charge back– Contracting department pays for

everything – hourly salaries, depreciation of eqt– plus out of pocket– outside clients

Project Budget

Flat budget--all production is to be accomplished within a set budget for the year--

ITV

Budget Questions What must be done and who will

pay for it

• 1. Can it be done in house, or will it require independent/external help ?

• 2. Travel ? How much ?• 3. Length of program/piece ?• 4. Level of sophistication of project

(tape format, graphics, drama,web site)

Budget Questions What must be done and who will

pay for it• 5. Format (docum style more involved

than studio int)• 6. Does distribution require funding

( duplication, uplink costs,server, postage etc)

• 7. Performers/ talent• 8. Research costs• 9. Timeline

Budget Questions What must be done and who will

pay for it• 10. Shooting ratio• 11. Sets/ graphics/materials• 12. Size/sophistication of crew• 13. Is there music• 14 Remember set up/rehearsal• 15. Royalties, fees• 16. lighting, electrical

Budget Questions What must be done and who will

pay for it• 17. Media costs (tape,CD’s,DVD’s)• 18. Food/lodging/catering• 19. Insurance• 20. Ancillary uses/technology

– Web for tv or film

Budget Questions What must be done and who will

pay for it• Challenge all assumptions

– Realistic ?– Needed ?– Do internally ?– Internal good enough

During Project

• Track all expenses– Weekly if possible

• Track payments • Organizational tracking

– Often well behind

• Save all receipts• Cut costs where possible

– Shoot less, reduce complexity

• Prompt action if problem surfaces

Questions for Outside Vendors

• Normal business hours

• Overtime rates

• Require operator

• Personnel and mileage for location shoots

• Minimums

• Liability

• Discounts--large volume or not-for-profit

Questions for Outside Vendors

• Down time policy--equipment malfunctions

• Cancellation deadline

• Equipment included in package ?

Budget Structure

• Pre-production

• Production

• Post production

• Duplication/distribution/promotion

• Evaluation

Contingency

• Almost always there

• Understood by funders

• Sometimes questioned

• Usually 10-15%