Embed Size (px)
Citation preview
SECTION & AFFINITY GROUP FINANCES
2013 LTC – St. Louis, MO – Feb 28 to Mar 3
Leonard A. Anderson, PE [email protected]
Mandy L. Cowgill [email protected]
Elio A. Manes [email protected]
2
OBJECTIVES
1. Overview of ASME Section & Affinity Group financial operations
2. Reference to ASME policies
3. Consolidated Banking
4. Merit-Based Funding Process and relationship to unit operations – budgeting and planning
5. Custodian Funds
3
OUTLINE – Part I
• Basics
• Handout Inventory
• Expenses
• Income
• Success Stories
• Events
• Section / Affinity Group Funds
• Continue on to Consolidated Banking
4
• 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
5
• Overview of specific financial information - LTC_financial_handout_13.doc
• Dayton Engineering Sciences Symposium.pdf
• Event essentials – Events.doc
• Custodian Fund Explanation.pdf
• MBF handout - Sections.doc
• MBF handout - Affinity Groups.doc
6
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
7
SECTION INCOME -
DUES CONTRIBUTION • FY08 (1st yr) ~$95K; FY09 ~$87K;
FY10 - ~$83K; FY 11 ~ $85K donated; FY 12 ~ $102K donated
• FY 13 ~$142K donated
• Checks / EFTs should have been distributed by now for FY 13
• Consider sending out reminders to Members to renew and mention they can donate directly to the Section on their dues statement
8
How Do We Raise Money?
Ask for it! NOTE: if doing any major fundraising, check with your Staff Liaison
and District Leader to ensure compliance with Policy P-2.7,
“Solicitation of Funds,” and that you‟re not interfering with something
being done by ASME or the ASME Foundation
Examples of Fundraising Events
• Dinners, auctions, “bake sales” or any other type of event conducted
for the sole or primary purpose of raising funds for your Unit‟s
activities
• Conferences and other activities that directly further the engineering
mission are not considered fundraising activities
9
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
Your Unit should also budget to generate a surplus from
activities that are directly related to furthering the
engineering mission
10
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 third part of this session
11
EXAMPLE OF A SECTION SUCCESS
STORY:
Interactive Discussion on the Dayton
Engineering
Sciences Symposium
http://www.asmedayton.org/DESS
Mandy Cowgill [email protected]
12
PREMISE
• Annual symposium
• Local engineers present research
• Commercial
• Military
• Academic
• Commercial sponsors
• Held at local university
• Continental breakfast, lunch with speaker
13
COST FOR ATTENDEES • Undergrad students (presenting) $0
• Grad students (presenting) $0
• All other students attending $25
• Keynote/luncheon only $30
• ASME members $75
• Non-ASME members $100
14
GROWTH OF EVENT
• 2012 was 8th annual event
• 2005
o 6 ½ hr event
o 11 sessions
• 2012
o 8 hr event
o 21 sessions and poster session
15
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
16
DISCUSSION
• Do you have any questions?
• How many would consider replicating this program in your own Section?
• Further info:
• Mandy Cowgill [email protected]
• http://www.asmedayton.org/DESS
17
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 nor use of the logo
– Policy 12.1; updated
– All Events with an expected gross revenue greater than or equal to $50,000 must follow the procedures established by P-12.1 and be approved by the ASME Events Committee
18
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)
19
OPERATING FUNDS
• Sections external operating bank accounts are being transitioned to a new Consolidated Banking system
- Refer to the next section on Consolidated Banking for details
- Distinct from Custodial Funds, which are maintained by the Treasurer of the Society
20
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
21
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
22
The “Premier Track – Resource
Management – Financial Reports
Manager” presentation will be posted on
the 2013 LTC Web Site, at
http://events.asme.org/LTC13/home.cfm
Scott Carlson, P.E. [email protected]
23
QUESTIONS / DISCUSSION • Feedback on needs for ASME
support for Sections & Affinity
Groups in financial operations
Goal by the BOG: • The Board of Governors has set
a long term (2025?) goal to
move ASME from a $100 MM to
a $500 MM organization
24
Part 2: ASME
Consolidated Banking
25
A bank consolidation effort is underway where all external bank assets maintained by ASME Affiliates (Districts, Sections/Groups, Technical Chapters) will be transferred to a consolidated banking platform under JP Morgan Chase for the purposes of:
• Complying with various tax and financial reporting requirements
• Consolidating the number of banking relationships at ASME‟s Affiliates, leading to improved transparency, greater efficiency, and economies of scale.
• Insuring access to the best banking management products available to not-for-profit companies to satisfy ASME‟s needs.
Background
26
0
50
100
150
200
250
All Senior Sections Did Not Submit
Anything
Submitted Bank
and Financial
Statements
Submitted
Financial
Statements Only
Submitted Bank
Statements Only
Only 29% of sections were in full
compliance in FY ‘11
• ASME needs greater compliance from all Sections related to financial reporting
Background (continued)
27
Benefits • ASME has the potential to achieve many qualitative and quantitative advantages
by transitioning to a consolidated banking and reporting solution. Many organizations similar to ASME operate under a centralized banking structure for their Section or chapter organization structure. By way of summary, potential advantages include, but are not limited to the following:
• Improved tax and financial reporting
• Eliminate hundreds of EINs
• Consistency with 990 tax and various other regulatory filings/audits
• Reduction of financial, operational, and compliance risk
• Reduction in the burden on Affiliates for banking and financial reporting (no longer annual reporting)
• Improved transaction reporting and historical data retention
• Eliminated risk of abandoned bank accounts
• Consistent investment strategy as a result of consolidated investment funds
• Shorten the timeframe to process Merit Based Funding
• Improved banking services available to Affiliates and greater economies of scale, including reduced banking service fees.
28
The following are the anticipated transactions that Section officers will process with Chase Bank:
• Expenditures
• Manual Checks
• Online ACH payments
• Wire payments
• Revenue
• Check Deposit
• at Chase branches
• via smartphones
• mail to ASME
• ACH receipts
• Wire receipts
Transactions
29
• In conjunction with the banking consolidation effort, an Affiliate Revenue and Expense Register system has been built to provide the basis for coding banking transactions for integration into ASME‟s core accounting system. The proposed flow of data is in the diagram below.
Officers will code transactions using pull-down menus
Transaction Flow
30
Part 3: ASME
Merit Based Funding Program
31
• 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 3
32
• 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
Program Objectives
33
• Covers program year starting July 1 to June 30 • Mandatory Prerequisites:
– In order to qualify for funding, each Section must have: • Moved onto the ASME consolidated banking platform • Coded banking transactions in the Register in a timely manner • Submitted the required Annual Operations Budget • Submitted the Merit Funding form between July 1st and no later
than October 1st • Maintained a current list of Section officers on file with ASME • Provided “Unit After Activity Reports,” which are components of
the evaluation criteria
Section Merit Funding
34
Reporting Criteria with varying weights (unchanged vs 2012):
– 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 - Overview
35
Section Merit Funding Continued
Beginning in FY „12, Section Merit Based Funding must Now be submitted via online survey.
– Now prompts you for your answers for each sub-part of each item
– All the math is now done online – „12 was a learning year; lessons learned will be
incorporated for the „13 survey
36
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.
Section Merit Funding Continued
37
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)
Section Merit Funding Continued
38
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)
Section Merit Funding Continued
39
Item 3 Provide Opportunities 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 Continued
40
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 Continued
41
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.
Section Merit Funding Continued
42
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
[email protected] – 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).
Section Merit Funding Continued
43
Item 6 Section Growth and Sustainability [5 Points, Max]
– Co-develop and/or organize an event with a Student Section
– Hold membership recruiting or retention campaign or event
– 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 Continued
44
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.
– Hold an early career event, resulting in at least 50% participation by early career engineers (less than 10 years professional experience).
Section Merit Funding Continued
45
Item 7 Extent of Partnership with Local / National Engineering Organizations (NEO)
– Unique to Districts G – J (Non-N. American Dists) – Hold coordination meetings with NEOs or other ASME
Sections – Assist in negotiations for joint benefits with NEO – Representative to committees of local / national bodies – Hold joint technical talks / seminars with NEO / other
ASME Sections – Etc. (See MBF handout / form)
Section Merit Funding Continued
46
• 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 „13 formula x=$10.00 and y=$5.14. (Updated vs FY „12)
• Current funding (FY13) is $400K; (FY12) was $400K; FY11 was $375K; FY10 was $367K; FY09 was $390K; FY08 was $350K; FY07 was $230K).
• Should have been completely distributed by LTC.
Note: The goal is for all sections to achieve “Excellent” status
Program Details: Unchanged for „13
47
• Similar requirements to Section Merit Funding program. Deadline for submittal is October 1.
• A new AG Merit Funding Form has been developed for FY „13; see the handout.
• Requirements are similar to previous years; changes will be highlighted in red.
• Mandatory Prerequisites:
– In order to qualify for funding, each AG must have submitted the required Annual Operations Budget and Merit Funding Form
– A current list of AG officers must be on file with ASME
– Unit After Activity Reports are also required
Affinity Group Merit Funding
48
• Reporting Criteria – Now Multiplying Scores by Weighting Factors:
– 1: Communications - 9 points max (was 8); Weight 3
– 2: Operations (was Governance) - 5 points max (was 2); Weight 2
– 3: Activities - 9 points max (was 4); Weight 3
– 4: Strategic Initiatives (New) – 6 points max; Weight 3
– 5: Growth - 6 points max (was 3); Weight 4 Now includes Virtual Community Growth
– 6: Fundraising - 2 points max; Weight 2
• Scoring - Updated
– % Score ≤ 100% - Qualifies for that percentage of funding.
– > 100% Funded at 100%.
– Max score is 110%
Affinity Group Merit Funding Continued
49
• Funding
– Up to $500/year is available to each AG to fund group activities
• Level of Funding Request (Essay)
– How will the Group will utilize the funding (up to 300 words)
– ALL Groups also asked to describe any non-monetary resources requested (previously only those with < 50%)
• Other Significant Activities Not Otherwise Covered (Essay)
– This is an entirely new section
– Provide the Affinity Communities Operating Board justification to grant bonus funding
Affinity Group Merit Funding Continued
Practical Exercise
(Exercise based on section operations.
It provides insight to Affinity Groups as well.)
51
• June – Consider MBF as Unit plans next year‟s program
• July 1 through Oct.1 – Units prepare all necessary
reports (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
52
• 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 Timeline Continued
53
File your unit‟s reporting forms:
• Unit Budget (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 Center http://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 [email protected].
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
54
OPERATIONS BUDGET
REPORT
•Plan Development
–Revenue Estimate
–Expenditure Estimate
•Plan Approval
•Plan Submittal
55
DUE by:
October 1st!
UNIT
OPERATIONS
BUDGET
FORM available from:
http://volunteer.asme.org/unit/
Section Form shown, Affinity
Group Form is Similar
56
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
57
You‟re welcome to contact us
[email protected] – or – [email protected]
- Or -
Your Staff Liaison or District Leader
- Or -
ASME Staff
Elio A. Manes
Director – Communities & Services
- Or -
Jared Oehring, VP Financial Operations
For More Information or to Comment:
58
Contact Information District Leaders
District A
Michael S. Roy, PE
District B
Nael Barakat, Ph.D. P.Eng.
District C
Thomas E. Wendt, PE
District D
Judith Ann Bamberger
District E
Elliott Short
District F
Mary K. Bailey
District G
Desmond Yok Rue Chong
District H
Memis Acar
District I
Mario M. Copa, PE
District J
Hadi H. Tahboub
59
Contact Information Affinity Communities
Operating Board
VP, Affinity Communities (FY13)
KC Dugal de la Garza
VP-Elect, Affinity Communities
Eduardo Barrientos
Finance Committee Representative
Joseph Radisek
60
Questions
