The AMS's first quarterly report of its 2023/24 fiscal year shows most businesses earning revenue far under budgeted expectations.
Year-to-date business revenues have fallen below budget expectations. Grand Noodle Emporium recorded the lowest revenue with $24,932 in losses, a considerable difference from the budgeted $52,107. In contrast, Blue Chip surpassed the budget’s expectations by generating $90,065, exceeding the predicted $81,867.
VP Finance Abhi Mishra speculated that the lower numbers were a result of reduced students on campus during the summer term, compared to 2022.
The AMS’s 2023/24 budget also anticipated a $738,000 deficit.
According to Mishra, business performance has been improving since September, which will be reflected in the next quarterly report.
“I'm hoping that a version of that continues throughout the school year that would then also reflect the fact that students are wanting to come back and they want to be more out there,” he said.
The AMS financial report shows a surge in spending on events like the Welcome Back BBQ and Block Party, reaching $70,500 so far, considerably higher than the $36,937 spent in the 2021/22 first quarter. The AMS budgeted more for events this year — going from $370,000 to $418,000.
The second salary increase for the Work Learn positions has created an unexpected financial risk for the department of Student Services. The unplanned additional costs reach $11,812. This unplanned risk affects the salaries of 15 coordinators and assistant coordinators within the team.
Going forward, Mishra said to ensure financial responsibility the AMS, “will be doing monthly variances, even for all executives to make sure their spending is in line.”
“Everything is … very much in line with what we projected to be in the beginning. Now it's just time to implement those different pieces to the puzzle, and it's getting better every year,” said Mishra.
The AMS originally planned to open a new Mediterranean restaurant where Blue Chip currently sits when it moves to its new location.
The new opening was meant to happen in October, but it is now unclear when the move will happen.
Managing Director Justin Lieu said the AMS is now looking to lease the space to a food outlet instead, due to issues around financial stability.
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