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Robotics and Automation Society Business Plan Report. Outline. Background context Business plan principles Business process. Background Context. Current RAS Business Divisions. Four current business divisions Publications Conferences Administration Investments/Reserves. Annual - PowerPoint PPT Presentation
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Robotics and Automation Society
Business PlanReport
Outline
Background context Business plan principles Business process
Background Context
Current RAS Business Divisions
Four current business divisions Publications Conferences Administration Investments/Reserves
Annual
Operating Surplus/
Loss
Reserves Surplus/
Loss
Current Financial Flow
PublicationsMember FeesASPP/IELNon-member Fees
Conferences SurplusBook Broker
Administrative Travel, AwardsTech. Comm, IEEE
Market Gain
Market Loss
Minimum per TAB 50%
Op Expense
Reserves Margin
Reserves
Publications
Surplus/Loss
ApprovedInitiatives
Income Expenses
Recent Financial History*
* All numbers in thousands
Stan. Dev.
1997Actuals
1998Actuals
1999Actuals
2000Actuals
2001Actuals
2002Actuals
2003 Actuals
2005Budget
Op Net 70.5 243.2 382.8 380.4 321.9 333.3 460.3 415.7 88.1
Market Chg 239.0 70.8 59.4 160.5 (14.7) (99.0) (382.8) 396.2 0.0
IEEE Tax (235.8) (631.7)
Adjustments (4.1) (39.1) 59.3 (10.1) (34.1) (216.7) 174.3
Net Surplus 473.1 309.9 403.1 600.2 61.3 (431.5) (139.2) 986.2
Reserves 786.9 1,190.0 1,790.2 1,851.5 1,420.0 1,280.8 2,267.0
Watch List Exp 930.9 1,049.6 1,110.3 1,125.6 2,005.0 1,545.2 1,199.2 1,940
IEEE TAB Rules
Reserves can only be budgeted for initiatives in accordance with TAB rules Cannot be budgeted for operations IEEE TAB must approve initiative
requests Operating Fund/Watch List rule
Negative operations in 2 consecutive years => Watch List
Reserves Watch List rule Reserve/Expenses < 0.5 of operating
budget in any 2 consecutive years => Watch List
Other IEEE Factors
New ASPP/IEL formula will cost RAS >$125k per year unless we can obtain more Xplore usage or more articles
Reduced Book Broker income expected IEEE recommends non-member rates and
has penalized rates below recommended IEEE recommends that member rates
cover variable publication costs Highly variable IEEE Administration costs
Financial Controls
Direct controls Member fees (only $110k out of $2.2
mil.)* Non-member subscription rates
($170k) Member subscription rate ($22k) Page charge rate ($38k) Advertising rates ($27K) Conference budget approval &
direction *Numbers are 2003 actuals
Financial Controls
Direct controls Some expenses (travel, awards,
distinguished lecturer, member activities, long range planning, technical activities) ($60k)
Page counts Editorial reimbursed expenses
($105k)
Financial Controls
Indirect controls ASPP/IEL ($400k)
Depends on number of Xplore hits and # articles
Book broker policy Which conference proceedings are
included # articles
# subscriptions – subscription drive Form of subscriptions – encourage change
Electronic subscriptions avoid expense IEEE services used
IEEE Budget Process
Op. Bud. ≤ Proj. inc.
For year N
Initiative Request
s
Soc. Bud. Req.
April, N-1
June, N-1
IEEE TAB
Budget Review
& Approv
al
Society Budget
s
Year N
}
Current RAS Unbudgeted Expense
Process
These expenses come from current operating budget, not reserves Can be added by AdCom, but stay net positive
Unbudgeted expense request brought to the Financial Activities Board prior to AdCom
VP for Finance presents the financial impact on the budget to the AdCom
The AdCom votes on funding the program
Current Unbudgeted Expense Input
Required
Program title Name of the proposer
(responsible for annual report) Starting and ending dates Amount requested Funds administered by
(committee, etc.) Brief description Expected benefit to Society
Recent Approved Initiatives & Unbudgeted Expenses
T-ASE startup $300k Member Activities -- Virtual Communities $ 3k RAS Chapter of the Year Award $
1k/yr RAS Technical Activities initiatives $ 10k Long Range Planning Committee initiative $
5k IEEE Field Award $ 10k+/yr Distinguished Service Awards $ 3k/yr EdCom initiatives $ 12k Distinguished Lecturers Program $ 9k/yr Archiving pre-1988 publications $ 35k
Note: Recurring expenses must transition to operating budget
Some Observations
Standard deviation of operating net was $208k
IEEE Tax part of operating budget since 2002
Excluding effects of IEEE Tax or market variations, the operating surplus could be reduced without much danger of going on Watch List
The largest market reduction in reserves was $383k
TAB reserve requirement: $970k
Business Principles
Motion
The business principles and processes listed below shall be adopted as the basis for RAS financial operations.
Business Plan Principles
There shall be a process to annually review business divisions and set operating and reserves goals
Non-member income should support member services
Operating budget surplus and initiatives shall be targeted to manage reserves
Consideration should be given to control member costs as well as to new initiatives
Business Plan Principles
Our reserves shall Be maintained at or above the TAB
specified minimum plus a safety term Suggest TAB min + 50% worst market
loss + initiative capacity For example, ($1,940k/2) + ($383k/2)
+ $125k ≈ $1,300k Be the basis for establishing new
initiatives Initiatives are a mechanism for using
our reserves to benefit members
Business Plan Principles
While initiatives are encouraged when resources are available, strong proposals are expected. Reserves should not be spent simply
because the excess reserves are substantial
The initiative process shall consider Member inputs Income sources and budget impact Formal independent review of initiative Transition from initiative to ongoing
expense or sunset
Business Plan Principles
Expenses (to members) of carrying out society business shall be reimbursed
Members should not normally be paid for society activities Major business activities should be led by
member volunteers but supported by professional services, either inside or outside the IEEE
As a volunteer-run Society, consideration should continually be given to business simplification
Business Process
Annual Business Process
FAB review of ongoing activities, in conjunction with boards where appropriate
Benefit/cost review of initiatives at end of period Self study from initiative managers Independent review If appropriate, recommendation on
continuation or termination
Annual Business Process
Divide new initiatives into two categories Fixed duration
Secondary impact on budget, use reserve funds
Expected ongoing activity Possible initial reserve funding Assess long term operating budget impact
Minimum size unspecified, but est. $5,000 Require detailed proposal for initiatives
All information required for unbudgeted expenses
If over $X, a process plan for implementation Evaluation plan
Annual Business Process
Obtain LRPC input on desired annual initiative capacity
Board reviews, AdCom decisions; Set ongoing expense budget Set target reserve level Target budget surplus goal to move
toward desired reserve level, while avoiding Watch List problems.
Society Budget Process
Fall, N-2 Winter, N-1
Committees generate initiative ideas & prelim
proposals
Review byVPs/Brds
orLRPC
Detailed proposal
s prepared
Member
Inputs
Business Process
AdCom Review & Decisions
FAB Financial Analysis
Initiative Activity Review
Initiative Requests by VPs, LRPC
Initiative Capacity Request:
LRPC
Rates
Conference Goals
Financial Status
Reserve Goals
Anticipated External Factors
Budget Decisions
Initiative Decisions
ExCom Review
ICRA, N-1
Spring, N-1
Prop. Bud.
IEEE Budget Process
Op. Bud. ≤ Proj. inc.
For year N
Initiative Request
s
Soc. Bud. Req.
April, N-1
June, N-1
IEEE TAB
Budget Review
& Approv
al
Society Budget
s
Year N
}