The 2017/18 budget was presented after 10 months delay at the Student Union Society’s (SUS) Extraordinary General Meeting (EGM) on Feb. 8. For the 2017/18 fiscal year, the SUS predicts a $131,940 corporate surplus with an overall $15,826 deficit.
The SUS has been operating without an approved budget since the previous fiscal year due to there not being enough adequate information for an accurate budget to be created back in March.
The budget was presented by SUS executive director Mark Wellington.
“When I came here a year ago, the financial situation of SUS was extremely, to say the least, a wreck,” Wellington said at the EGM. “There was no finance manager, they left the executive without any financial help. The [previous] executive director left, so no help there either.”
Because of the delay, this year’s budget included far more actual figures than projections. Each month up to and including November contains actual figures.
Food and Beverage
Over the last seven years, SUS food and beverage services accumulated a $762,755 deficit.
“When I came here, the reporting on the Canoe was in two categories: food and liquor,” Wellington said.
The Canoe’s sales are projected to total $124,635, but will run a $88,297 deficit for this fiscal year. This is a decreased deficit from previous years. In 2016/17, the Canoe ran a deficit of $113,571.40, and in 2015/16, $79,500. Prior to that, the campus restaurant existed as Aftermath, located in E building.
“This is virtually what happens at almost every single student union in the country,” Wellington explained. “I say that with extensive knowledge.”
Wellington said this is typical of student unions due to the precarious nature of the restaurant business. He also noted that campus restaurants face additional challenges to other restaurants.
“52 weeks a year, you’re paying overhead. At best, there’s 28 to 30 prime operating weeks in a year, but that’s not exactly true. You start cutting out the long weekends, the holidays, you really only have 22 to 23 prime weeks that you may have an opportunity to make money — in 52 weeks of paying operations and overhead.”
The Canoe runs with a 49 per cent cost of goods sold.
Fairgrounds is expected to profit $46,700 this fiscal year. It notably runs with a more healthy 32.2 per cent cost of goods sold.