IEEE Sensors VP Finances & Treasurer Report Brian T IEEE Sensors VP Finances & Treasurer Report Brian T. Cunningham Mike McShane October 25, 2009

Outline Procedure and Timelines for Budget Preparation Review of Recent Finances 2004-2009 Sensors Journal Pricing Finance Review and Watch List 2009 Budget Review and Adjustments 2010 Budget Conference Surplus Level

Procedures for Budget Preparation First pass budget for 2010 Generated by IEEE mid-April 2009 based upon previous year actuals Review with ExCom at June meeting Our opportunity to change journal pricing, page count estimate, and number of issues Return to IEEE Second pass budget for 2010 Generated by IEEE mid-July 2009 Review with ExCom/AdCom meeting in October Make adjustments to committee expenses, awards, conference income estimate

2008 Budget Review 2008 was the worst financial year for Sensors Council since its inception Conference ran a deficit Stock market collapse results in ~30% loss of reserves (previously near $1M) We made decisions that increased expenses before we knew either of these things would happen Sensors Council landed on the IEEE financial watch list

Income: 2004-2008 *not including IEEE infrastructure (direct and indirect) 2008/2009 budgets do not include infrastructure credit and market fluctuation

Income 2004-2009 Budget IEEE Sensor Council

Expenses 2004-2009 *not including IEEE infrastructure (direct and indirect) **includes direct and indirect infrastructure and any credit 2008/2009 budgets do not include infrastructure credit and market fluctuation

Expenses 2004-2009 We used to get yearly income from interest on surplus But now that source of income is gone *not including IEEE infrastructure (direct and indirect) **includes direct and indirect infrastructure and any credit 2008/2009 budgets do not include infrastructure credit and market fluctuation

Expenses 2004-2009 Two sources of increased Pubs cost: Editorial HQ increased cost/page (+$20K impact). LEOS Editorial Charge increased from $90K to $120K for support from Linda and Lisa (+$30K impact) *not including IEEE infrastructure (direct and indirect) **includes direct and indirect infrastructure and any credit 2008/2009 budgets do not include infrastructure credit and market fluctuation

Expenses 2004-2009 Committee expenses have grown CONSIDERABLY * 2009 working budget is actually $176K *not including IEEE infrastructure (direct and indirect) **includes direct and indirect infrastructure and any credit 2008/2009 budgets do not include infrastructure credit and market fluctuation

Expenses 2004-2009

Income-Expenses Large deficit for 2008 and projected deficit for 2009 Lecce Conference Deficit Large Committee Expenses *not including IEEE infrastructure (direct and indirect) **includes direct and indirect infrastructure and any credit 2008/2009 budgets do not include infrastructure credit and market fluctuation

Income - Expense Large deficit for 2008 and projected deficit for 2009 Lecce Conference Deficit Large Committee Expenses IEEE Sensor Council

Reserves ~$360K investment loss + 110K deficit There will be some recovery in investments in 2009 to offset expected 2009 operating deficit

Sensors Journal Pricing Page count: 2000 Issues/year: 6 2009 Price: $37/issue Printing costs have been increasing Incremental cost of a subscription became greater than what we charged for it!! Result: Loss of journal surplus in 2009

Sensors Journal Pricing Number of print subscriptions has been declining Hopefully offset by greater downloading of IEEE Sensors articles

Sensors Journal Income from Downloads and Surplus ASSP Revenue 2008: $276.1K (actual) 2009: $260.0K (forecast) Total Sensors Journal Income-Expense 2008: $5K (actual) 2009: Break Even (forecast)

Sensors Journal Price increases for 2010

Analysis: What Happened in Lecce? Large discrepancies between projected and actual sources of income Too few attendees due to large rejection rate Poor communication with conference management company Expenses not scaled back enough for lower number of attendees Weak dollar results in high local costs THIS REPRESENTS A ~$127K NEGATIVE IMPACT ON OUR 2008 BUDGET

How to prevent another Lecce experience? Stack conference board of directors with ExCom and AdCom members VP Finance = Conference Treasurer President Elect = Conference Publicity Chair VP Conferences Mandate Memorandum of Understanding with Conference Chair Use of PMMI for conference management Use of ePapers for abstract submission Selection of Conference Chairs who will be more responsive and responsible Admit enough papers for conference to have a surplus Hold conference in easily accessible venue

Analysis: Sources of Expenditure Growth Estimate Committee expenses have grown CONSIDERABLY

Committee Expenses 2009 Budget Adjustments 2009 Budget Versus Actuals (as of Oct 1 2009)   Init Budget BUDGET ($K) ACTUAL ($K) President's Office 20.0 6.0 5.1 Past President 18.0 0.0 AdCom Committee 40.0 43.2 28.2 AdCom Misc 15.0 2.4 1.0 Disting. Lect. 10.0 4.8 3.6 Technical Committee 5.0 ExCom Committee 35.0 50.4 2.0 Advertising/Promotion 6.6 Awards 13.0 TOTAL 171.0 116.8 56.5 Additional~$32K 2009 Expense for Christchurch ExCom meeting and travel expense We are still not near getting committee expenses to pre-2007 levels ($88K Total Committee Expenses for 2009)

Income: $277.5K (552 Registered Attendees) Sensors 2009 Budget Income: $277.5K (552 Registered Attendees) Expenses: $274.5K Surplus: $3.0K Weakness of US dollar versus NZ dollar results in surplus of >$50K reduced to $3K In hindsight, putting money into NZ account early would have made a big difference this year

NZD Versus USD

Recommendations to Get Off Watch List Continue publishing excellent journal Initiatives to increase downloads and impact factor Reduce committee expenses to 2007 levels Manage future conferences more carefully Would like to see >750 registered attendees in Hawaii, and maintain quality of talks Discuss policy for avoiding negative impact of currency fluctuations Increase income from tutorials and exhibitors Maintain print journal subscription price above cost

Issue for Discussion: Level of IEEE Staff Support Level of IEEE editorial support has steadily increased 2004-2006: $45K 2007: $80K 2008: $90K 2009: $120K In 2008 we started, for the first time, to utilize IEEE “Executive Services” for meeting support 2008: $11.8K Proposal: reduce level of editorial support back to $90K and eliminate executive meeting support We will need agreement from Photonics Society to do this

2010 Second Pass Budget Committee Expenses Goal for watch list – return to 2007 levels

2010 Second Pass Budget A loss of $30K is currently projected, with a $110K conference surplus

Proposals for Additional Expense Cuts to Balance 2010 Budget Hold mid-year ExCom meeting in University facilities (~$3K) Make greater use of internet-supported meetings In place of mid-year ExCom? (~$15K) Stop paying conference registration fees for ExCom members to attend SENSORS (~$5K) Hold AdCom/ExCom meetings at SENSORS conference in University facilities (~$4K) Reduce to only one banquet for ExCom/AdCom at SENSORS (~$1.5K) Stop IEEE staff support for SENSORS (~$5-10K) Increase SENSORS registration fee by $100 (~$55K) Can we increase author page charges? ($??K) Reduce IEEE Staff support to $90K ($30K)