SECTION & AFFINITY GROUP FINANCES 2011 LTC – Dallas, TX – March 4 to 6

SECTION & AFFINITY GROUP FINANCES2011 LTC – Dallas, TX – March 4 to 6

Leonard A. Anderson, PE AndersonL@asme.org

Mandy Cowgill BrogdonM1@asme.org

Bill Robbins RobbinsW1@asme.org

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OBJECTIVES

1. Overview of ASME Section & Affinity Group financial operations

2. Links to ASME policies 3. Merit-Based Funding Process and

relationship to unit operations – budgeting and planning

4. Custodian Funds

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OUTLINE – Part I

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• Expenses (Uses for Funds): What does an ASME Section or Affinity Group spend funds for?

• Income (Sources of Funds): Where does an ASME Section or Affinity Group get its operating funds?

• Fiscal Year: How does ASME’s Fiscal Year differ from the calendar year? (July 1 – June 30 vs. Jan 1 – Dec. 31)

BASICS

HANDOUTS

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• Overview of specific financial information - LTC_financial_handout_11.doc

• Dayton Engineering Sciences Symposium.pdf

• Event essentials – Events.doc

• Custodian Fund Explanation.pdf

• MBF handout - Sections.doc

• MBF handout - Affinity Groups.doc

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EXPENSES

• Meetings, tours, conferences, short courses and special projects

• Recognition, honors and awards

• Support for officers and members to participate in ASME programs

• Speaker programs

• Scholarship programs

• Newsletters and other member communications

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INCOME - MERIT-BASED FUNDING

• Current method of providing funding to Sections and Affinity Groups from ASME’s Operating Budget; based on Units’ achievements

• To be discussed in detail in the second half of this session

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SECTION INCOME - DUES STATEMENT

• FY08 (1st yr) ~$95K; FY09 ~$87K• FY10 - ~$83K donated • FY 11 ~ $85K donated• Checks / EFTs should have been

distributed by now for FY 11• Consider sending out reminders to

Members to renew and mention they can donate directly to the Section on their dues statement

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How Do We Raise Money? Ask for it!

Individuals:• Face-to-Face Asks• Direct mail, letter

campaigns• On-line campaigns• Telethons• Special Events• Products sales

Foundations:• Submit letter of inquiry & proposal • ASME sources• Outside Foundations

Corporations:• Sponsorships• Corporate Foundation/Marketing• Matching gifts• Campaign gifts

If Doing Any Major Fundraising, Check With Your District Leader to Insure You’re Not Interfering With Something Being Done by ASME or the ASME Foundation

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EXAMPLE OF A SECTION SUCCESS STORY:

Interactive Discussion on the Dayton Engineering

Sciences Symposium

Mandy Cowgill BrogdonM1@asme.org

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PREMISE

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COST FOR ATTENDEES• Undergrad students (presenting) $0

• Grad students (presenting) $0

• All other students attending $25

• Unemployed ASME members $25

• Keynote/luncheon only $30

• ASME members $75

• Non-ASME members $100

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GROWTH OF EVENT

• 2010 was 6th annual event

• 2005

o 6 ½ hr event

o 11 sessions

• 2010

o 9 hr event

o 28 sessions

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LONG TERM BENEFIT• Extra funds to support

o Student sections

o K-12 STEM programs

• Promotion of

o Local section

o Local companies

o Host university

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DISCUSSION• Do you have any questions?

• How many would consider replicating this program in your own Section?

• Further info:

• Mandy Cowgill BrogdonM1@asme.org

• http://www.cs.wright.edu/~asme/DESS.htm

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INCOME – ASME GRANTS• ASME Program Initiative Fund

(Policy P-2.3)

• ASME Foundation Grants (Policy P-2.11)

• Breakthrough Grants

• Enterprise Initiative Fund (coming soon)

http://www.asme.org/Governance/Volunteer/Funding/Program_Funding_Options.cfm

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EVENTS• Levels of ASME Involvement:

– ASME Sponsorship: ASME has total financial responsibility

– ASME Co-sponsorship: Joint financial responsibility with another organization

– ASME Participation: No ASME financial responsibility

– Policy 12.1; updated

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Section & Affinity Group Funds

• Monies from General Fund are disbursed by appropriations in accordance with Society Policy P-2.8.

• Monies may be solicited for special activities in accordance with Society Policy P-5.3. (Policy 2.1, Section IV.A.1)

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Section Funds• ALL Units with bank or other financial

accounts using an ASME issued tax payer ID must submit a bank statement in addition to the other annual ASME requirements

• If statements not dated 6/30, submit statements “containing” 6/30’s date

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Section FundsSubmit These Financial Statements by October 1: 1.Scan and email to unitsupport@asme.org along with your unit name.  Please put "Bank Statement" in the subject line. 2.Upload an electronic copy of your statement via VERT at http://vorequest.asme.org/  3.Send it via fax to 212-591-7671.  Attention: Jessica Albert 4.Send a hard copy to ASME to the attention of:Jessica AlbertMS 23S1ASMEThree Park AvenueNew York, NY  10016

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OPERATING FUNDS

• Money kept separately in banks or other recognized financial institutions (distinct from Custodian Funds which are maintained by the Treasurer of the Society)

• Each Section has a taxpayer ID

• Each Affinity Group should acquire a taxpayer ID if they receive funding

• Bank accounts should have at least two authorized signers

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Accounting

• Budget – required by ASME and useful tool

• Check signing authority

• Documentation – “paper trail”

• Audits – perform annually

• Accepting Credit cards – Acteva, etc.

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ASME Financial Reports Manager

• The Financial Reports Manager is a tool which allows Unit Leaders to view reports of their Custodian Accounts online

• Requires special authorization; usually given to Unit Chairs and Treasurers

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Accessing the ASME Financial Reports Manager

• The Financial Reports Manager can be accessed from the Unit Leadership Resource Center http://volunteer.asme.org/Unit/

• Or, can be accessed directly at http://my.asme.org/financials/GLReports.cfm

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The “ALF – Resources – Financial Reports Manager” presentation will be posted on the 2011 LTC Web Site, at

http://events.asme.org/LTC11/home.cfm

Aaron Tsang TsangAH@asme.org

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QUESTIONS / DISCUSSION

• Feedback on needs for ASME support for Sections & Affinity Groups in financial operations

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Part 2: ASME

Merit Based Funding Program

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• Program Objectives• Program Basic Facts• Quick Review of the Section & Affinity Group

Merit Funding Programs• Practical Exercise• Review Typical MBF Timeline• Important Filing Requirements• Benefit of Experience• Contact Information• Your Questions

Discussion Topics – Part 2

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• A system that recognizes achievement in meeting the Society’s objectives and adding membership value

• Ensure that all Units, regardless of membership size, demographics or geography have an opportunity to secure funding for future activities

• Develop criteria that are not prescriptive, but that set a roadmap and incentives for enhanced section or group performance

• Similar programs under consideration/development for Technical Divisions

Program Objectives

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• Covers program year starting July 1 to June 30

• Mandatory Prerequisites:

– In order to qualify for funding, each Section must have submitted the required Annual Financial Report, Operations Budget Report, and Merit Funding form between July 1st and no later than October 1st

– A current list of section officers must also be on file with ASME

– Unit After Activity Reports are components of the reporting criteria

Section Merit Funding

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• Reporting Criteria with varying weights:– Section Communications – Section Activities for Members – Provide Opportunities for Members’ Professional

Growth– Aid in the Development of the Engineering Workforce– Section Operations– Section Growth and Sustainability– Partner with Engineering Organizations

(Districts G – J)

Grade x Weight = Score , Add Scores From all Criteria = Total Score

Note: Not all section activities can be captured by a single form. If a section has done an activity or program above and beyond normal programming they can include that for special consideration.

Section Merit Funding: Updates - ‘11

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Review of changes to the Section Merit Based Funding Form for FY ‘11: (New criteria in underlined italics)Item 1 Section Communications

– Maintain a website with current officer contact information. (definitions on page 3 of form)

– Maintain regular communications with members: newsletters/meeting notices via website, direct mail, email, text message, social networking or other as appropriate to the section. (def’ns pg 3 of form)

– Set up and maintain a new social networking site/page for section members (Facebook, LinkedIn, etc.)

– Utilize ASME list-server for communication with members – newsletters/meeting notices, direct mail, and email.

NOTE: Scoring schema has changed for Item 1.

Section Merit Funding: Updates - ‘11Continued

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Item 2 Section Activities for Members– General membership activities held, such as technical

meetings, socials, tours, webcasts, industry meetings, History & Heritage events, etc., with corresponding ASME Unit "After Activity Report” must be submitted within two weeks of the activity (Item 5 includes grade points for Executive Committee Meetings which are NOT eligible for this category.)

– Collaborate with other ASME Units / Sectors, technical and professional societies and other educational organizations by organizing joint events and activities (definitions on page 3 of form)

NOTE: Scoring schema has changed for Item 2.

Section Merit Funding: Updates - ‘11Continued

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Item 3 Provide Opportinities for Members’ Professional Growth

1 Point for EACH activity (Max 3 points):– Sponsor or conduct a short course or other

professional development activity (seminar, workshop, etc.) Earn one point for EACH 2 PDH “eligible event” offered – You can accumulate more than one point per activity, or can add two 1 PDH activities together to equal 2 PDHs. (Note: No more than 1 point can be earned from technical dinner meetings. See definitions, Page 3 of form.)

1 Point (Max 1 point):– Send a delegate to the Leadership Training

Conference (LTC) [Relocated from Item 5]

Section Merit Funding: Updates - ‘11Continued

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Item 3 Provide Opportinities for Members’ Professional Growth Continued

1 Point (Max 1 point):– One Member submitted by the Section for ASME

District or higher Honor or Award– Bestow local Section Honor, Award or Scholarship

on one Section/Student Section Member (see definition, Page 3 of form)

Section Merit Funding: Updates - ‘11Continued

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Item 4 Aid in the Development of the Engineering Workforce

Candidate Workforce Development Activities:– Conduct a dedicated activity for students and/or

early career engineers (networking event, student paper presentations, career night, early career forum, industry tour, etc.)

– Conduct a short course at a level appropriate for students or early career engineers

– Engineering related presentations to or interaction with K-12 schools, universities, or student sections

– Participation in engineering job shadowing / mentoring program, or Engineering Fairs / Symposium

Section Merit Funding: Updates - ‘11Continued

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Item 4 Aid in the Development of the Engineering Workforce Continued

– Sponsor an engineering workforce or university activity (E-Week, FIRST, Human Powered Vehicle Challenge, Student Professional Development Conference, etc.) that promotes math, science and engineering education. Engaged participation or volunteering is expected in addition to any financial sponsorship.

NOTE: Scoring schema has changed for Item 4.

Section Merit Funding: Updates - ‘11Continued

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Item 5 Section Operations

– Executive committee meetings held at least quarterly

– Conduct an annual program planning meeting– Section has a representative participate in a Global

Communities or District or Society related webcast– Section submits an article or a best practice to

bestpractices@asme.org– Maintain current Executive Committee officer

identification on the ASME master roster.– Maintain Section operations by-laws document and

have current copy on record with ASME headquarters.

– Maintain a section history (Current with the last three years).

NOTE: Scoring schema has changed for Item 5.

Section Merit Funding: Updates - ‘11Continued

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Item 6 Section Growth and Sustainability [This is an entirely new Item – 5 Points, Max]

– Co-develop and/or organize an event with a Student Section [Similar bullet was in Section 4]

– Hold membership recruiting or retention campaign or event [Was in Section 4]

– Personally contact and invite new members to attend section event or activity (as per new member list and guidance from ASME headquarters)

– Include an early career engineer (less than 10 years professional experience) on the Executive Committee

Section Merit Funding: Updates - ‘11Continued

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Item 6 Section Growth and Sustainability Continued

– Conduct one communication on how to make the most of your membership such as a presentation at a Section or Student Section meeting, or a newsletter article. [Similar bullet was in Section 4]

– Hold an early career event, resulting in at least 50% participation by early career engineers (less than 10 years professional experience).

Item 7 Extent of Partnership with Local / National Engineering Organizations (NEO)

– Unique to Districts G – J (Non-N. American Dists)

Section Merit Funding: Updates - ‘11Continued

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• Four grading levels (Excellent; Good; Fair; and Funding Withheld)

• Funding formula – 100% for Excellent; 75% for Good; 50% for Fair; and Zero for ‘Funding Withheld’.

• Funding formula takes into account unit size, 100% Amount = $x per member for first 250 members, plus $y per member for each member over 250 members. For FY ‘11 formula x=$10.00 and y=$5.45.

• Current funding (FY11) is $375K (increase from FY10 funding of $367K) FY09 funding was $390K; FY08 funding was $350K; FY07 funding was $230K). Should have been completely distributed by LTC.

Note: The goal is for all sections to achieve “Excellent” status

15 Point Bonus – To ALL Sections for FY ‘11

Program Details: Updated for ‘11

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• Similar requirements to Section Merit Funding program. Deadline for submittal is October 1.

• Mandatory Prerequisites:

– In order to qualify for funding, each AG must have submitted the required Annual Financial Report, Operations Budget Report, and Merit Funding form

– A current list of AG officers must also be on file with ASME

– Unit After Activity Reports are components of the reporting criteria

Affinity Group Merit Funding

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• Reporting Criteria with varying weights:– Governance - 2 points max– Communications - 4 points max– Activities - 4 points max– Growth - 3 points max– Fundraising - 2 points max

• Scoring– % Score = # of points x 10– 0 - 50% = No Funding– 51% - 100% will receive percentage of funding equal to

score

• Funding– Up to $500/year is available to each AG to fund group

activities

Affinity Group Merit FundingContinued

Practical Exercise

(Exercise based on section operations.It is applicable to Affinity Groups as well, but

timelines may be different.)

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• June – Consider MBF as Unit plans next year’s program

• July 1 through Oct.1 – Units prepare all necessary reports (Financial, Budget, Unit After Activity report) and file by Oct.1

• July 1 through Oct. 1 – Units file Merit Funding Report – You will be notified that your report is received.

• Oct. 1 through Oct. 16 – ASME Unit Support to process and verify reports

Typical MBF Timeline

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• Oct. 1 through Oct. 16 – Leaders and ASME Unit Support staff to contact all units that did not submit reports

• Oct. 17 through Oct. 23 – Unit Support staff (using Merit Funding Formula) to determine funding levels

• Oct. 24 through Nov. 6 – Unit Support staff to complete payment authorizations and submit to ASME Accounting for payment

• Nov. 7 through Nov. 17 – Payment processing and distribution

• Consider calculating your Unit’s TENTATIVE MBF score at beginning of year – and tracking throughout – as your actual program evolves

Typical MBF TimelineContinued

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File your unit’s reporting forms:

• Unit Budget & Financial Reports (no later than Oct 1)• After Activity Reports (no later than Oct 1)• Merit Funding forms (no later than Oct 1)

All can be accessed on the Unit Leadership Resource Centerhttp://volunteer.asme.org/unit/

Notify ASME of your section/group officers (no later than Oct 1):

Section chairs have the option of directly entering officers online using the access to the online roster. If you have any questions on how to do this contact Jessica Albert at AlbertJ@asme.org.

You can also submit a hardcopy of your officer listing. The forms are available on the Unit Leadership Resource Center under “Section Officers & Committees Information Form”

Important Filing Requirements

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OPERATIONS BUDGET REPORT

•Plan Development

–Revenue Estimate

–Expenditure Estimate

•Plan Approval

•Plan Submittal

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DUE by:

October 1st!

UNIT OPERATIONS BUDGET

FORM available from:

http://volunteer.asme.org/unit/

Section Form shown, Affinity Group Form is Similar

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FINANCIAL REPORT

The Three Parts:

• ASME Funding

• Unit-Generated Income

• Expenditures

An Annual Financial Report is a U.S. Internal Revenue Service (IRS) requirement and must always be submitted.

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DUE by October 1st for preceding fiscal year! FORM available from:

http://volunteer.asme.org/unit/

ANNUAL FINANCIAL

REPORT

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DUE within 2 weeks of event

ALL reports due by:

October 1st for preceding fiscal year!

UNIT ACTIVITY REPORTS

FORM available at:

http://forms.asme.org/unitactivity/CreateMeeting.cfm

Filled out and filed online

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You’re welcome to contact usAndersonL@asme.org , RobbinsW1@asme.org or BrogdonM1@asme.org - or -Contact your District Leader - or -meritfunding@asme.org- or -Burt Dicht, Managing Director Knowledge and Community Sector212-591-7074DichtB@asme.org

For More Information or to Comment:

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Contact InformationDistrict Leaders

District A Stan Halperson (FY011) s.halperson@comcast.net

District BAaron Tsang (FY13)TsangAH@asme.org

District CMohammed Mahinfala (FY11)MahinfalaM@asme.org

District DMahantesh Hiremath (FY12)hiremathm@yahoo.com

District E Elliott Short (FY11)ShortB1@asme.org

District FJohn Mulvihill (FY12) MulvihillJ@asme.org

District GVojislav Ilic (FY12)V.Ilic@uws.edu.au District HBernard Gindroz (FY12)gindrozb@orange.fr District IMario M. Copa, PE (FY11)CopaM1@asme.org

District JHadi H. Tahboub (FY12)hadi.tahboub@gmail.com

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Contact InformationAffinity Communities

Operating Board

VP, Affinity Communities (FY13)KC Dugal de la Garza DugalC2@asme.org

Finance Committee RepresentativeStephen ReeseStephen.Reese@inl.gov

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Questions

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