Hey, @finance !
Ever since seeing the numbers in the August board meeting, I have been struggling to digest the $11,190 for “Website Development”.
Is there any way this number can be further broken down? What, exactly, is encompassed in “website development”? To be frank, I don’t see an $11k site when I look at ILGISA. There’s got to be something I’m not seeing, right?
Hi Josh,
I will look into that further, we have $6,461.45 in the budget for the website.
The line after that $11,190 shows it being amoritized, so maybe this was from a bigger website redevelopment that happened years ago spread across several years?
I’ll reach out to Megan to see where that number comes from.
I was going to summarize this, but it’s just easier to copy Megan’s reply.
"Sure! It gets a little confusing. Amortization is essentially the process of spreading the cost of an intangible asset over its expected useful life, rather than recording the entire expense at once. The $11,190 was related to website development from many years ago… I believe around 2015. Rather than recognizing the full $11,190 expense all at once, that cost was spread out over a number of years.
Since it has been many years since that expense occurred, the website development cost has now been fully amortized. That means the full amount has already been recognized as an expense over time, and no additional amortization expense is currently hitting the P&L.
The $6,461 we budgeted for website expenses this year is entirely separate from the $11,190. Those are our current annual costs to keep the website and database up and running.
Hope that helps clarify things!"
Hi Josh. That was the cost several years ago. What you’re looking at is the asset value from when we purchased it. That’s been on every balance sheet going back at least to 2020.
@jcarlson (realized I replied to myself)
I see! Thank you both of you for the explanation. I do remember seeing it on older balance sheets, but mistakenly thought that amount was being paid annually!
Okay, so… what exactly does $6,461 get us? I still don’t think I see a website worth that much… Is that dedicated staff hours? Is that a subscription to MemberClicks? It seems like a lot to me.
@sspradling Any further breakdown on the $6.4k? I’m planning to attend Finance next week, if it makes more sense to discuss then.
Nothing at the moment, we will discuss further on Thursday.
Good morning,
From Megan,
"The $6,461 we budgeted is just for the MemberClicks site. That includes our database, event reg forms, frontend of the site, etc.
It does not include any staff time. All staff time is accounted for under the CM Management Fee (which is a flat fee - we don’t bill hourly)."
