division iv director report. why is ieee different from other technical societies? the breadth of...
TRANSCRIPT
Division IV Director Report
Why is IEEE different from other technical societies?
The breadth of activities!
Membership
350,000 members
210,000 also belong to societies
That means that 140,000 members belong to to IEEE for reasons other
than society participation!
IEEE• Technical Activities
– Societies
• Regional Activities– Chapters– Sections (Some)
• Educational Activities• IEEE- USA• Standards• HQ - The folks who run it
(Green = income other than IEEE dues)
IEEE Funding Source History
Annually From IEEE Budget
Member DuesInv. IncomeConferencesNon-member PubsPackaged Products
IEEE duesAll Income Sources
Society DuesConference IncomeNon-member Pubs
IEEE duesInvestment IncomePackaged Products
IEEE Reserves - History
($20)$0
$20$40$60$80
$100$120$140
YE1994
YE1995
YE1996
YE1997
YE1998
YE1999
YE2000*
YE2001
YE2002
* 2000 was first year Corporate Reserves were depleted
Final IEEE Ending Reserve Balances ($M's)
Restricted Fund
Societies/Councils & TAB
ISTO
IEEE-USA and AAES/ABET
Educational Activities
Regional Acts & Offices
Standards Association
Corporate
Where IEEE money comes from
~$250M revenues per year$25-35M from IEEE dues$3M from StandardsThe rest are split between conference income
and pubs salesPlus a smattering of other sources (society
dues, regional confs, Proc of the IEEE, regional events, etc
IEEE Finances ($M)Entity Revenue ExpenseSpectrum 13 (Dues) 13EAB 3 (Dues) 3RAB 8 (Dues) 8Geog. Units 1 (Dues) 1
IEEE Other 23 (Dues) 24Publications 4 (Dues) 4 (Pubs distributes IEL income to S/Cs =
21)Standards 11 11
TAB/Soc. 154 153IEEE-USA 6 6
Infrastructure
Current infrastructure costs are like 20-30% of NPS expenses
IEEE Conferences
• Included Services– Use of Logo– IEEE Advertising– Budget Review/Approval/Audit Services– Forward Funding (Advance Loan)– Fiscal Insurance– IEEE Publication of Conf Record, Journal, Transactions– Publication Sales by IEEE (ASPP, IEL, …)
IEEE Conferences•Available Services
•Audit•Contract Negotiation•Conf Planning•Registration•Travel
Current Issues
• Should governance structure change?
• Should publications income be dependent on usage?
• Should TAB expand w/o bounds or should there be a S/C life cycle?
• There will be Division Director-Elect positions in all Divisions
Current Issues (con’t)
• Reserve funds are ~ $77M. "Non-Reserve" funds are $47M (invested in minimum risk vehicles)
• Reserves “should” be built to 50% of annual expenses (10 year process?)
• Affiliate fees to 50% of IEEE dues• No business class travel for 2003 and
2004 (except health reasons or IEEE President(s))
History
Prior to mid-1960’s: All income goes to the General Fund:All entities funded annually by IEEE
Brief IEEE Financial History
• 1967 - Investment fund initiated• 1969 - Investment committee established• 1970 - Societies requested financial assistance• 1971 - Society surplus concept established• 1973 - Additional Society revenue streams requested;
Board gave credit for “short term” interest on surplus balance
• 1974 - Societies allowed to keep non-member single-sales revenue
• 1974 - Long-term investment pool created allowing Societies to share in investment gains
Brief IEEE Financial History (Cont.)
• 198? - Additional society revenue requested• 198? - ASPP revenue distributed to Societies• 198? - Book broker revenue to TAB• 1993 - RAB reserve fund established• 1994 - EAB reserve fund established• 1996 - Practice of raising dues to only add money to
reserves ended• 1996 - Standards reserve fund established• 1996 - Book broker revenue to Societies• 1996 - Current financial model identified by volunteers
& staff as a major issue
Brief IEEE Financial History (Cont.)
• 1996 - Practice of spending from prior years surplus began at 9% of investments level
• 1996 - Allocation study undertaken• 1996 - Allocations frozen expecting “infrastructure
charge” to begin shortly (did not happen) • 1998 - “New” financial model proposed• 1999 - Proposal withdrawn• 2000 - Russell committee established• 2000 - Corporate reserves went to 0, investment market
declined, resulting in OU reserves being taxed
Brief IEEE Financial History (Cont.)
• 2001 - Findlay committee established; Allocation process implemented in 2002 budget; TAB allocation process implemented
• 2002 - Adler committee established (LRBPC); Process for overhead recovery evolved; TAB committee refined allocation model for Societies/Councils
• 2002 - Financial model implemented• 2002 – IEEE BoD mandates balanced
operations budgets
2001 Budget
• Long practice of building 9% return on investments into budget continued
• Additional $10 Million of Initiatives• Overall 2001 actuals
– ($29.3 Million)– Mainly due to stock market decline
• 2001 operations actuals– Positive to budget by over $11.0 Million– Expenses still greater than income– IEEE began responding to slowing economy
2002 Budget• Practice of investment spending paying
for operations eliminated• IEEE BoD mandated net zero or positive
operations budget• 2002 IEEE operations net improved by
over $23 Million relative to 2001 budget• BoD passed a net positive operations
budget• Continued reacting well to slowing
economy
2003 Budget
• Practice of not using investment spending to pay for operations continued
• IEEE 2003 operations budget– $0.8 million net operations surplus
• Continuing to react well to the economy