CONTENTS:
FINANCIAL
REPORTS and FISCAL YEARS
IEEE Geographic Units must annually
report their financial status (using the
L50
form) covering the period of 1 January -
31 December. This period is the fiscal year for
all IEEE Geographic Units. The Financial
report is due by the third Friday of February
following the end of the fiscal year. A
report must be signed and submitted,
noting beginning and ending balance, even if
there was no financial activity during
the one-year period. The Unit Treasurer
should retain a copy of the report.
As part of standard audit procedure, a
Unit Officer other than the Treasurer
(assuming the it is the Treasurer that has
prepared the report) must review the
financial report. The Treasurer and the Unit
Officer who have reviewed the report, should
sign and date the report in the spaces
provided. If an independent accountant has
audited the Unit's records, a copy of
the audit report must accompany the
report. However, if the audit report has
not been completed by the due date of
the financial report, the report should be
submitted anyway and the audit report
submitted when it becomes available .
The annual financial report is
essentially structured to use the
principles of cash basis accounting throughout
the year, but adjusted for revenue and
expense accruals at year-end, if necessary. Cash
basis accounting means that only those
transactions that involve the receipt or
disbursement of cash should be reported. For
example, cash received by the Unit
Treasurer would be included as revenue
(receipt), and a check drawn on the Unit
bank account would be an expense
(disbursement).
At December 31st, if your unit has
incurred revenue that has not been
received or expenses not paid (both known as
accruals), it should be reported in the
financial report.
In addition to the principles of
financial operations on this web page,
Treasurers of Units in the United States should
refer to the "Principles
of IEEE Financial Operations for
Regions 1-6."
Forms and instructions necessary to
complete the financial report are
updated and available on the web in December
each year. Go to www.ieee.org/scsreports,
and select the link for "Financial
Report."
+1 732 562 5516
financial-report@ieee.org
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FINANCIAL
RESULTS TO BE REPORTED
The annual L50 financial report should
reflect financial transactions for the
year related to the following:
(1) General Activity : All Unit events
and other activities normally associated
with the operation of the Unit should be
included (for example: Unit meetings, social
events, seminars, publications).
(2) Sub-unit Activity: Sections should
include Subsection, Chapter and Affinity Group
financial transactions with those of the
Section. Financial data for Joint Section
Chapter and Joint Section Affinity Group
activities should be reported by the
managing Section, and based upon actual cash
transactions and year-end accruals. Care
must be taken to prevent duplicate reporting of
Joint Chapter and Affinity Group
activities by multiple Sections.
(3) Conferences : Conferences with
budgeted income/expense of $25,000 USD
or more must forward a detailed budget to
IEEE Conference Services for approval. The
report should be submitted at least one
year in advance of the conference. It
should include written Unit approvals,
and should note if Unit cross endorsement has
been sought. (PM 10.1.4)
Conferences must also close their
financials by preparing a detailed final
financial report and submitting it to IEEE
Conference Services twelve months
(within 6 months is desired) following the date
of the conference. Bank Accounts must be
closed six months after the Conference
is held. Closing bank statement(s) must be
submitted to IEEE Conference Services
with the final financial report, (PM 10.1.11).
Conferences where IEEE has greater than
a 50% financial responsibility,
including conferences that are solely IEEE
sponsored, and where the actual or
budgeted income or expense is $100,000 or more
must be audited by a professional,
independent, outside source. This could
include IEEE Operations Audit, an external
accounting firm or another qualified
source (for example: an internal auditor from a
University or other organization).
Conferences with revenues under $100,000
USD will be audited on a periodic basis.
IEEE's Operations Audit Department will schedule
and arrange for the audits of these
conferences. For those conferences not
scheduled for an Operations Audit review in a
given year, an audit should be conducted
by a committee composed of individuals who have
no direct or indirect responsibility for
the financial transactions of the
conference. (PM 10.1.10; FOM.2.E.1.a)
For additional information regarding
conferences, please contact:
IEEE Conference Services
+1 732 562 3878
conference-services@ieee.org
http://www.ieee.org/conferences/conforward.xml
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REBATE FUNDS
FOR SECTIONS
The IEEE provides each Section with a
rebate upon receipt and approval of all
required reporting (meeting and financial
activity and current officers) from the
Section and its sub-units. Details for rebate
eligibility requirements and amount of payment
can be found on the annual Rebate
Schedule. For each calendar year a
Section may earn all of the following:
-
An
annual Section allowance.
-
Rebate payment per Member, Student,
Associate, Affiliate, Senior
and Fellow Grade, based on 31 December
statistics of the prior
year.
-
Subsection Rebate , for Sections that
have Subsections.
-
Chapter Rebate for each Chapter or Joint
Chapter. Rebates for Section
Chapters will be included in the rebate
distributed to the Section;
Council Chapter rebates will be
distributed to the Council.
These funds are intended to support the
activities of reporting
Chapters.
-
Affinity Group Rebate. Rebates for
Affinity Groups will be included
in the rebate paid to the Section or
Council to which they belong.
These funds are intended to support
reporting Affinity Groups.
-
10%
bonus for Sections whose reports are
submitted by the February
deadline.
-
Activity bonus.
Rebates for Geographic Units established
during the calendar year are prorated,
based on establishment date of the unit and upon
receipt and approval of the required
annual reports.
Geographic Unit Support
+1 732 562 5513
sec-rebate@ieee.org
www.ieee.org/scsreports
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GEOGRAPHIC
UNIT AUDITS
Geographic Units with annual revenues or
expenses of $100,000 USD or greater are
required to have their financial reports and
supporting records audited by a
professional, independent, outside source (i.e.,
by someone who has the appropriate auditing
credentials and is not a member of the
involved unit).
The audit may be done by a certified
public accounting firm, the IEEE
Operations Audit Department or another fully
qualified source. A copy of the
resultant audit report should accompany the
annual financial report (L50) for the
geographic unit that is submitted to IEEE as
part of the requirements for receiving
the annual rebate. For the geographic
unit audits that it performs, Operations Audit
assesses fees at the rate of six-tenths
of 1% of the geographic unit's annual revenues
or expenses, whichever is greater.
Geographic Units with budgeted or actual
revenues or expenses of less than
$100,000 USD are audited by Operations Audit on
a rotational basis. Operations Audit
selects the units to be audited and notifies
them of the selection, shortly after receipt of
the involved unit's L50 for the year
just ended, i.e., selection of units to be
audited for the calendar year 2005 will
be based on the information included in their
2004 L50. No audit fees are assessed on the
audits conducted on a rotational basis.
For answers to any additional questions
re: the audit requirement, please
contact:
IEEE Operations Audit
+1 732 562 5503
ops-audit@ieee.org
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APPLYING
FOR GRANTS AND CONTRIBUTIONS
IEEE Grant Administration staff can
assist volunteers with obtaining grants
and contributions from government agencies, as
well as private and corporate
foundations to support IEEE conferences,
projects and programs. Assistance is
provided with:
- Identifying funding sources
- Drafting proposals
- Understanding and following
funding sources proposal guidelines
- Submitting the proposals
- Compliance with funding sources
regulations regarding financial and
technical reporting
IEEE Development Office
+1 732 562 3915
supportieee@ieee.org
www.ieee.org/services/financial/grants/
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FINANCIAL
ASSISTANCE FROM REGIONS
FOR SECTIONS
Limited funds, as prepared by the Member
and Geographic Board, are allocated
to Regions to assist Sections having financial
difficulties. These funds are known as
"Section Support via Regions" or
SSVR. These funds are distributed directly
to the Regions for distribution to the
Sections. Sections must submit a request for
financial assistance to their respective
Regional Director who will review the
request for approval.
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USE OF UNIT FUNDS
Money on hand in the IEEE Societies,
Technical Councils, Geographic Units,
and Conferences is the property of IEEE. The
only exceptions are conferences
co-sponsored with non-IEEE entities. Any
Society, Technical Council, Geographic
Unit and Conference funds may not be used
for:
- Payments of any kind for the
preparation or presentation of papers,
whether to an individual unit, speaker or
author of a paper, except for
reasonable travel expenses. This policy does
not apply to compensation for
lecturers or other IEEE sponsored
educational activities where a fee
(or tuition) is charged.
- Monetary or equivalent prizes or
awards over $2,000 USD, except for
scholarships and other approved awards for
students. Awards above
$2,000 USD must be approved by the Awards
Board.
- Electioneering of any kind for
any IEEE or Unit office.
- Electioneering of any kind for
local, state or federal office.
- Commercial promotional
activities.
- Donations of a philanthropic
nature, including scholarships, unless
authorized in advance by the IEEE Executive
Committee.
- Personal or commercial loans of
any kind for any purpose.
- Purchase of real estate, without
prior authorization from the IEEE
Executive Committee.
- Investment of surplus funds in
any investment vehicle other than the
IEEE Investment Fund.
If your Unit has a reasonable and urgent
need for a waiver of any of the
prohibitions listed above, (with the exception
of the last item) a request may be
submitted by the Organizational Unit through the
Region Director to the IEEE Executive
Committee. Pending the decision of
the IEEE Board of Directors on the request
for waiver, no action contrary to the
policy stated above may be taken. (FOM.2.E.2.b)
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CONTRIBUTIONS
FROM UNIT FUNDS
Requests for permission to contribute
IEEE funds allocated to IEEE
Organizational Units in excess of $5,000 USD,
must be addressed to the Executive
Committee via your Unit's Region Director. Each
request should contain the following
information:
(a) purpose of the proposed contribution
(b) amount and source of the funds to be
contributed
(c) name, location and other pertinent
information concerning the grantee
organization or
individual
(d) a statement of the reciprocal
benefits to be enjoyed by the IEEE and
the grantee
For contributions in an amount of $5,000
or less, the same process described
above should be followed, except requests for
permission must be addressed to the
appropriate Major Board Vice President or
President, as such authority has been delegated
by the Board of Directors.
-
In
the case of a contribution to an
organization or individual to
be selected after permission is granted
(as in the case of
scholarships, fellowships,
grants-in-aid, etc.) the qualifications
to be met by the grantee, when selected,
shall be stated.
-
Requests to make contributions on a
recurring or continuing basis
(such as annual scholarships) should be
submitted to your Unit’s
Region Director who will then present it
to the IEEE Board of
Directors for approval. (FOM.2.E.4)
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ACCEPTING CONTRIBUTIONS
IEEE Units may accept contributions on
behalf of IEEE. Accepted
contributions should be reported in the annual
financial report. (PM 11.2.E.2)
Contributions received in excess of $250
USD must be reported to the IEEE
Development Office, so that appropriate
acknowledgements may be sent and records
kept. (FOM2.E.3)
IEEE Development Office
+1 732 562 5550
supportieee@ieee.org
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FINANCIAL
ASSISTANCE TO LOCAL
STUDENT BRANCHES
IEEE funds allocated to Societies,
Technical Councils, Conferences, and
Geographic Units may be used to supplement the
operation of Student Branches.
(FOM.2.E.5)
Student Services
+1 732 562 5523
student-services@ieee.org
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FUND-RAISING AND
GRANT ADMINISTRATION
It is the policy of IEEE to comply with
all applicable U.S. (federal, state or
local) or non-U.S. (at each governmental level)
charitable solicitation and donation
laws.
Fund-raising projects and initiatives
of, for, and between IEEE Organizational
Units, members, and staff worldwide, and with
the IEEE Foundation, Inc. are
coordinated by the IEEE Development Office
The IEEE Development Office is the
primary office to support and coordinate
fund-raising activities for IEEE Organizational
Units, members, and staff worldwide.
This office should be informed in
writing of any fund-raising activities at least
60 days in advance of such activities.
IEEE Organizational Units contacting potential
donors for the intent of soliciting
funds must post their fund-raising
projects on the Fund-Raising Development
Calendar prior to any solicitation.
(FOM.7)
IEEE Corporate Activities (Development Office)
+1 732 562 3915
supportieee@ieee.org
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INSURANCE
& BONDING
It is IEEE policy to provide
general liability insurance, including
coverage for property damage and bodily injury,
to cover IEEE organizational units. IEEE
Volunteers are included as additional
insureds under IEEE’s general liability
insurance policy while acting within the
scope of authorized duties on standing and
special committees.
It is also IEEE policy to provide
fidelity bond coverage for those
individuals who have access to funds for IEEE
activities and/or Organizational
Units. IEEE's fidelity bond coverage
applies only to funds under the
exclusive control of IEEE Staff or Volunteers.
The coverage does not apply to funds
held jointly by IEEE and any other
organization. For this reason, IEEE Volunteer
Officers who have access to funds held
jointly by several organizations should be
covered by a separate fidelity bond
policy, which may be arranged for locally by the
organization.
If difficulty is encountered in securing
separate fidelity bond coverage,
assistance may be requested from the IEEE
Insurance Department. Requests should be
made at least sixty days prior to the
date for which the coverage will be required.
IEEE cannot guarantee that fidelity bond
coverage can be obtained. (FOM.5.A;B)
IEEE Financial Services
Summary
of coverage
Volunteer
Global Travel Plan
+ 1 732 562 5388
ieeeinsurance@ieee.org
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UNIT RESERVES
Each IEEE Organizational Unit that
generates revenue, or is authorized by
the IEEE Board of Directors to receive
assessments or a portion of IEEE dues,
may have custodial responsibility for a portion
of IEEE Reserves, to the extent
determined by the Board of Directors (PM
11.4.A). Reporting of the reserves will be
included in the year-end reports (FOM
4.A).
Section reserves should be adequate but
not excessive. As a general guideline, a
reserve greater than three times the annual
rebate, after known commitments and
unusual requirements are deducted, would be
considered excessive. There will be special
cases where this may not apply.
In special circumstances, such as being
in a good location for conferences, some
Sections can provide outstanding services to
their members and, in the process,
generate surplus funds. In keeping with
the policy of avoiding large reserves, the level
of activity should be increased so as to
best serve the interests and needs of the
membership. This can be done through additional
meetings, conferences, educational
programs, publications, etc., or by putting
these funds to work elsewhere in the
Institute, through Member and Geographic
Activities, Technical Activities, Educational
Activities, or other Sections, Chapters,
or Branches within the Region. (PM 9.7)
IEEE Treasury
investment-program@ieee.org
concentration-banking@ieee.org
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CAPITAL ASSETS
The IEEE Controller's Office must be
notified of purchases and disposition of
capital items through the unit's annual report
so that the IEEE's property records
reflect the value of all IEEE capital
assets. (FOM.3.A.4)
A capital asset is generally defined as
tangible property with a minimum value
of $1500 USD, a useful life greater than one
year and intended for long-term use.
Examples include land, buildings,
computers, furniture and other equipment.
+ 1 732 562 5519
financial-report@ieee.org
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MEETINGS
- CHARGING FEES
Sections and Chapters frequently hold
small technical, professional,
educational and social meetings throughout the
year. Many of these meetings
involve guest speakers and other events designed
to meet member needs. These
meetings are sponsored by the related
organizational unit and open to all membership.
The costs of meetings are generally
supported by the budgets of the involved
IEEE organizational units. Most of these
meetings are free, or minimal fee.
Occasionally members may be asked to pay
for meals and entertainment. Donations or
grants may also help support these
meetings. (PM 10.0.C & 10.2)
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CONTRACTS
Contracts in excess of $25,000 must be
reviewed by the IEEE Procurement
department. IEEE Units may negotiate
contracts with a value of $25,000 or
above, but shall not give final approval or
"execute" contracts.
Contracts up to $25,000 in value may be
executed locally but a copy must be sent
to the IEEE Procurement department for central
record retention. (FOM.8.A)
IEEE Procurement
+1 732 562 5396
contracts@ieee.org
http://www.ieee.org/services/financial/contracts/
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TRAVEL GUIDELINES
Travel for IEEE purposes must be
approved by an authorized person.
- Transportation - the most
economical airfare must be used. If travel
is by other means (train, private car),
reimbursement will be the actual
cost, as long as it does not exceed what the
most economical airfare would have
been.
IEEE will reimburse mileage at the
current approved rate (check to
see that the expense form you use is
up-to-date). Car rentals should
only be used when economical public
transportation is unavailable or
impractical.
- Lodging - single room occupancy
will be reimbursed.
- Receipts - original receipts must
be submitted for any single
expenditure in excess of $25 USD.
However, where the expenses are
being shared with another organization and
IEEE is requested to reimburse
only a portion of the expenses, legible
photocopies are acceptable.
(FOM.6)
The expense report form is available.
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SECTION DISSOLUTION
Failure of a Section to meet the
minimum required activities for a period
of one year shall result in the Section
automatically being placed on probation,
effective 1 January of the following year.
The Member and Geographic Activities
Board may dissolve any Section for any
reason deemed sufficient by the MGA Board,
including Sections failing to maintain a
reasonable level of activity. Remaining funds
and assets in the custody of that
Section will revert to the IEEE. (MGA
OpsMan 9.4.M and 9.4.N)
IEEE Member and Geographic Activities
+1 732 562 5512
sec-chap-support@ieee.org
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CONFLICT OF INTEREST
Conflict of interest is defined as a
situation in which a member’s
decisions or votes could substantially and
directly affect the member’s
financial or business interests.
It is the responsibility of all IEEE
members in any elected, appointed, or
volunteer position of an IEEE activity to
consider each item of business where
they have a vote or decision authority to
determine if a conflict of interest may
exist.
Potential conflict should be made known
immediately to the person in charge of
the activity (or the next higher authority if
the member is in charge). After
consultation with other individuals in the
activity, this person will advise the
member of the proper course of action and
note the action in the activity’s record.
This policy also applies to nonmembers
who are serving IEEE. (PM 9.9)
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EXPLANATION
OF IEEE NONPROFIT STATUS
Nonprofit, not-for-profit,
for-profit…what is the difference?
Both for-profit and nonprofit organizations are
allowed by U.S. law to earn profits at
the unit level. But only for-profit
organizations are allowed to pass along
profits to those individuals or corporations
that control them. Nonprofit organizations
are required to use their profits for
their program activities to accomplish its
stated purposes. IEEE’s
purposes are stated in Section 2 of the IEEE Constitution.
Sometimes the term not-for-profit
organization is used instead of
nonprofit organization. Are the terms
synonymous? As a matter of law,
no. The two terms are often used
interchangeably in good faith, but the
proper legal term is nonprofit
organization. The law uses the term
not-for-profit to apply to an activity
rather than to an entity. For example, a
hobby is essentially a not-for-profit
activity.
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