Fiscal Year 2015 (FY15) is 52-weeks long, running June 30th, 2014 to June 28th, 2015. Co-op bylaw 6.2 requires that management prepare an annual budget with input from the Board and its Finance Committee, the Board approves the budget, and a consolidated version of the budget is published and distributed to the Owners.
The FY15 budget was approved by the Board on June 24th.This budget reflects a Cooperative that isin transition. The East Remodel was completed in September. Willy West turns four years old in November and is now a “mature” store. Administratively we have restructured and invested in our back office support of the retails.
Some of the highlights from the budget
- Achieving break-even profitability (a.k.a. net income = $0).
- Funding our highest priority projects: customer service initiative, staff evaluation system, open book management 2.0, standardized operating procedures, and telling our story.
- Looking to the future by completing a Co-op strategic plan, expansion plan, and Willy West store layout evaluation.
- Developing staff capacity with an improving and better funded training program that is more aligned with Co-op needs and staff career path interests.
|FY15 Budget by the Numbers|
|[The below numbers are rounded.]|
|$42,800,000||in total budgeted sales|
|$27,300,000||in cost of goods sold (63.7% of sales)|
|$8,300,000||in total wage expense (19.4% of sales)|
|$3,100,000||in benefits, taxes, and other personnel related expenses (7.3% of sales)|
|$970,000||in capital expenditures (see accompanying capital budget)|
|$480,000||in debit/credit card processing fees|
|$390,000||in repair and maintenance expenses|
|$370,000||in rent expenses|
|$290,000||in utility expenses|
|$250,000||in Access (need-based) discounts|
|$210,000||in new Fair Share equity payments|
|projected surplus (aka net income)|
|Approved FY15 Operating Budget|
|The operating budget is a detailed projection of sales and expenses to support and guide day-to-day Co-op operations.|
|FY15 Budget||FY14 Actual|
|$||% of sales||$||% of sales|
|Cost of Goods||($27,263,780)||-63.7%||($25,630,881)||-64.1%|
|Other Operating Expenses||$4,194,870||9.8%||$3,941,596||9.9%|
|Total Operating Expenses||$15,602,070||36.4%||$14,427,894||36.1%|
|Income (Loss) from Operations||($45,850)||-0.1%||($70,512)||-0.2%|
|Total Other Income (Expenses)||$45,860||0.1%||$66,730||0.2%|
|Income Tax Expense||$0||0.0%||($51,112)||-0.1%|
|Net Income (Loss)||$0||0.0%||($54,894)||-0.1%|
|Approved FY15 Capital Budget|
|The capital budget includes significant, long term investments to support strategic initiatives (sales growth and/or operational efficiency), equipment replacement, or facility improvement.|
|East Remodel||$650,000||Finish East Remodel.|
|Expansion||$200,000||Budget to support Co-op expansion.|
|Point of sale server upgrade||$11,000||Upgrade the Point-of-Sale servers to improve performance and allow for scalability.|
|Customer Service Revamp: Customer comment software||$10,000||Implement new customer surveying system to track customer comments received/responded to, report trending customer interests, track satisfactory meeting customer service goals.|
|Security Cameras||$10,000||Expand current security camera arrangement to improve security of staff and owners, and reduce product loss.|
|Delivery Truck Refrigeration Unit||$10,000||Replace current unit which is past its useful life.|
|Carpet extraction/steam cleaner||$5,000||Purchase equipment to reduce dependence on external service providers.|
|Outdoor Mwerchandiser||$4,000||Purchase outdoor merchandiser fixture for produce and other seasonal products.|
|Unallocated/Contingency||$70,000||Unallocated is reserved for contingency and for projects that require additional planning before approved.|
If you have any questions regarding the FY2015 budget or other Co-op financial matters, feel free to email me at .