Introduction
The blue water football association was originated in 2006 as a not-for-profit organisation in Lamb ton country with a mission of providing a safe and productive environment that will enable youth to learn and apply the principles of teamwork, discipline, dedication and sportsmanship.
It eventually started with a single travel football team, the Sarnia Sturgeon for Lamb ton country youth aged 13 to 14 years. The starting three years were of struggle and the organization faced a decline. This decline ended when the team reached finals of provincial championship, finishing second in Ontario.
In the year 2010, the BFA added two more teams to its organizational hierarchy. The club now had a peewee team for the kids aged 11 to 12 and a bantam team for kids aged 13 to 14 and a junior varsity team for aged 15 to 16.
The Blue water football association being a not-for-profit organization had no such business to generate revenues for the club and its operations. The association totally relied upon the volunteer basis. Home games were played at the Norm Perry memorial field in Sarnia.
The association is of the view that it should launch a new team for the age group of 17 to 18 because the player from the junior varsity team wants to continue with the club. The players of this age from the city are travelling to other city to play football for other club. So the association members are of the view to provide a facility for the players in their club.
Approach Adopted
On July 31, 2012, Marge Stewart, the finance director of Blue water football association has received a number of requests for the start a team of age group from 17 to 18. She was of the view that this will require cash for the team to come into operations and to participate in the next season.
She knew that this would be a fruitful idea and the success of this step is probable but she wanted to know how much cash to the association needs to start up a new team. The finance director wants to develop a budget which can forecast the related costs and revenues from the start of a new team.
The approach adopted by the finance director is the activity-based approach which is more or less same as input and output approach. The finance director is looking from where she can get funds and from which activities they can earn revenues. The finance director is also looking to decrease the cost of managing a new team.
The activity-based approach reduces the distortion in the transformation through emphasis on the expected cost of the activities planned. The services that the organization provides have a cost which is to be calculated by the organization to keep the operations feasible. The costs are based in the activities performed by the organization.
The costs related to the football team are based on the activities performed by the organization to participate in the next season. The season consists of 7 months starting from February to August. The football team will take part in the up coming season which is the measure cost to the development of the team.
The budgeted cost for the team is related to the participation in the football season. In evaluating the proposed budget, the management have to focus their attention on the identification of the optimal set of activities rather than just the output and input relationship of the start of the team.
Budgets
The data available to the finance director is quite precise. The costs related to the start of the team and the revenues that the organization can generate from the start of the new team. The inflows that are probable in the budgets are the registration fees that the players will pay at the time of their registration.
The other revenues that can be expected are from the fundraising activities from the parents of the players and from the society. When the team will take part in the football season, the season consists of 8 matches and out of this 4 will be played on home ground from which the club will earn from the admission of public to the stands..........................
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