IEEE Technical Activities Board Operations Manual

7.0

FINANCIAL MATTERS

7.1

TAB FINANCES

The TAB Treasurer or an appropriate designee shall annually recommend to the Technical Activities Board a TAB budget for the subsequent year. The Technical Activities Board shall annually approve the TAB Budget. The administration of TAB finances shall be in accordance with the TAB Operations Manual.

7.2

TAB FINANCE COMMITTEE
The TAB Finance Committee, chaired by the TAB Treasurer, serves as an oversight and advisory body. The Committee shall establish financial goals and procedures for the operations of TAB, develop and implement the TAB budget development process, and project and monitor the financial performance of technical activities. The TAB Finance Committee is responsible for making recommendations on all financial matters to the TAB Management Committee and for keeping the TAB Management Committee fully informed on all financial issues.

7.3

SOCIETY FINANCES
The budgets, finances, and reserves of all technical organizational units are an integral part of IEEE under the ultimate authority of the IEEE Board of Directors. These operations are carried forward through administrative authorizations delegated to the Technical Activities Board, as appropriate. In connection with the annual budget cycle, each Society may set organizational unit dues and fees to help defray operating expenses. Society dues shall be applied to membership in the respective Societies as specified in IEEE Bylaw I-108. - Dues, Assessments and Fees.

7.4

SOCIETY/COUNCIL/CO-SPONSORED PUBLICATIONS ANNUAL BUDGETING PROCESS

Budget Cycle Dates.

(1)

First Week in April- First distribution of S/C Budgets. Staff will prepare and electronically distribute a first pass base budget accompanied by a supporting budget memo for all Societies/Councils (S/Cs) and co-sponsored publications. The budgets will include default parameters from the prior year budget (i.e.: society member fees, optional price per periodical, issues, page count) as well as Marketing's recommended non member price, society member projections, optional publication and non member subscriptions, first pass infrastructure numbers and complete operating detail based on appropriate inflation factors.

(2)

First Week in May. Preliminary S/C budgets are due back to the TAB Finance Group. The TAB Finance Group staff will work with the S/C officers to incorporate feedback on the base operating budgets. The following items MUST be submitted:
(a) Society member fee
(b) Member price per periodical
(c) Non member price per periodical
(d) Number of issues per periodical
(e) Page budget per periodical
(f) Preliminary operating budget
(g) Planned Initiatives, if appropriate
(h) New publication proposals, if appropriate
(i) Conference Worksheets

(3)

Mid May. Requests for new publications must be submitted to appropriate TAB staff for inclusion in agendas of June meetings if approval has not been received previously the following committees:
(a) TAB Finance Committee
(b) TAB Periodicals Committee
(c) Technical Activities Board (TAB)
(d) Publication Services and Products Board (PSPB)

(4)

June. Society fees, prices, page budgets, and planned initiatives must be:
(a) Endorsed by TAB Finance Committee
(b) Approved by Technical Activities Board
Please Note: No changes to periodical prices will be accepted once approved by TAB. For any prices not approved by TAB, the non-member price will be set by the IEEE Marketing Department, and all other prices (member, student, etc.) will remain at existing prices.

(5)

June. If not already received/approved, new publication proposals must be:
(a) Reviewed and endorsed by the TAB Finance Committee.
(b) Reviewed and recommended by the TAB Periodicals Committee.
(c) Approved by the Technical Activities Board.
(d) Received by the Publication Services and Products Board
Please Note: The driving force behind the June deadline for setting fees, prices, page budgets, etc., is the IEEE membership renewal cycle, which officially begins in the fall. During the summer months, IEEE Marketing prepares all of the brochures and promotional materials for the upcoming renewal. During this same period, TAB staff is responsible for updating the price and product tables in the Oracle database. Once this data is inputted, it must be tested and reviewed for accuracy. These tables are the source for all of the information that appears in the brochures and on the actual bills themselves.

(6)

First Week in July: Second distribution of S/C budgets - Staff will distribute electronically, the second pass operating budgets to the S/C officers which will include all revisions/modifications made to date. It is during this cycle that the S/C's are expected to complete their full operating budgets for the upcoming year. The TAB Finance group will have incorporated any adjustments to the All Society Periodicals Package (ASPP) and the Conference Publications Distribution Program distributions. Also included are any adjustments to infrastructure, paid by each Society/Council.

(7)

First Week in August. Full S/C operating budgets are due back to the TAB Finance group. Budgets should include final modifications or confirmation that no further changes have been incorporated.

(8)

1 September. The TAB Finance Group submits the S/C budget summary to the IEEE Financial Planning Group in order for them to aggregate the S/C budget results into the IEEE consolidated budget.

(9)

October: The TAB Finance Committee and the IEEE Finance Committee will review and endorse the Society/Council budgets and initiatives.

(10)

November. Approved budgets will be distributed to the S/C's.
(a) Approved by Technical Activities Board
(b) Approved by the IEEE Board of Directors

(11)

December. Approved budgets will be distributed to the S/Cs.

Important Information Regarding Page Budgets. TAB will continue to approve the S/C page budgets in June of each year with the caveat that S/Cs may publish any amount over the budget, but may not publish less than 95% of their budget in the following production year, without adjustment to their ASPP print distribution.
Note: The IEEE Publication Department plans their organization and publication rates for the upcoming year based on the page budgets submitted by the S/Cs. S/Cs may request any amount over the budget, but must inform IEEE Publication Department staff by 15 April of the production year for planning purposes. Additional pages should be spread evenly over the remaining issues for the year.
Any requests to increase pages after the 15 April forecast will be considered on a "resource available" basis.

ASPP Print Income Distribution Adjustment: The ASPP income distribution to those individual S/C periodicals that fall under 5% of their budgeted page count at year end will be adjusted such that the income received is in proportion to the ratio of actual pages printed divided by budgeted pages.

Distribution of ASPP Print Adjustment Funds: Funds collected from adjustments made to S/C periodicals that fall under 5% of their budgeted page count will be distributed back to the S/C periodicals that did not, using the ASPP print algorithm, which will be re-calculated for the eligible periodicals.
Note: TAB has approved the methodology in 1998, that in computing the final distribution of the print ASPP, TAD staff will use the page count that is available on 31 January of the following year (13th month). Publication issues not having a confirmed actual page count by 31 January will not be included in the official page count for the previous year.

Investment Income. Beginning with the 2002 budget cycle, Investment Income (short-term interest and dividends) for S/C's are now budgeted at the Institute level and are no longer budgeted at the individual Society/Council level.

Exceeding Budgets. Elected and appointed individuals and Chairs that are funded by TAB shall not exceed their budgets without approval. The following steps must be followed:
(1)The current Chair is responsible for providing input to the revenue/expense line items found in their committee budgets. Each line item shall be accompanied by a rationale for spending.
(2)The TAB Finance Committee will review budget inputs for acceptability and make adjustments as necessary.
(3)The Committee Chair will have access, using a WEB account, to review expenses on a monthly basis via the online financials.
(4)When it is apparent that actual or projected expenses will exceed their budgets, TAD will advise the TAB Managing Director, Vice President-Technical Activities or the TAB Treasurer as appropriate.
(5)Any actual or projected expenditure that causes any activity within the TAB budget to exceed its budget must receive approval from the TAB Finance Committee. The TAB Finance Committee will bring appropriate items to the attention of TAB as necessary.

7.5

ADMINISTRATION OF SOCIETY/COUNCIL AND TAB FINANCES
The Technical Activities Department (TAD) Finance Group is responsible for the overall management of TAB/TAD and Society/Council/Committee finances, which includes the coordination of the annual budget cycle, management of actuals against budget, and preparation of year-end forecasts vs. budget. In addition, the group supports the TAB Treasurer and the activities of the TAB Finance Committee.

Processing TAB/S/C Officer Expense Reports. In order for expense reports from TAB officers to be processed by TAD staff, it is the responsibility of the officer to identify what Committee the officer is an official member, or provide their S/C affiliation and purpose for travel. If official membership or S/C affiliation is not provided, TAD staff is directed by TAB to hold up processing until the proper information is provided.

Handling of any TAB Year-End Surplus. Any TAB year-end surplus will be used to reduce TAB Support. TAB reserves be fixed at the ending 2004 level, only to be affected by market fluctuation, and special needs as approved by TAB.

S/C Label Income. S/C label income will be used as an income source to offset TAB Support.

S/C Financial Watch List Guidelines. A S/C will be considered for the Watch List when one or both of the following take place:

(1) The S/C runs or budgets a deficit for two (2) consecutive years (unless the S/C provides the TAB Finance Committee with a reasonable explanation of the deficits, e.g., a purposeful decision to draw down reserves when reserves are more than adequate, for a special project or to increase member benefits);
(2) The S/C fails to maintain minimum levels of reserves for two (2) consecutive years. S/Cs on the Watch List will remain on the list until both of the following conditions are met:
(a) The S/C runs a surplus for two (2) consecutive years;
(b) The S/C maintains minimum recommended levels for reserves for two (2) consecutive years.
Minimum Recommended Levels for Reserves

Total Expense	Reserves/Expenses
Less than $700k	.50
$700k - $2M	.40
$2M - $15 M	.30
More than $ 15M	.15

7.6

FINANCIAL STATEMENTS AVAILABLE ELECTRONICALLY
Financial statements are provided electronically. Instructions for utilizing these options are described on each individual Society website. An IEEE Web Account is needed to access these pages. Refer to the Technical Activities FAQs for further information. If you have questions about the downloading instructions, please contact Technical Activities Staff.