lmp2209b CPMT Treasurer’s Report 9 February Preliminary Financial Results Year 2002 Budget (Interim) Year 2003 Budget Planning IEEE Financial Situation Impact

lmp2209b CPMT Actual and Budgeted Revenue and Expenses

lmp2209b See separate spreadsheet. DescriptionActualBudget Net surplus from Transactions$309K$399K Net surplus from Conferences209K228K Interest earnings27K33K IEEE/TAB charges93K91K Executive Office expense159K205K BoG and OpCom meetings40K75K Committees, etc. expenses255K283K Total net surplus 7K 2001 Financial Results (Preliminary, Pro Forma)

lmp2209b 2001 Financial Results (2) “Underspending” Committees and Initiatives Expense Budgets by  $5K,  10%: 2001 Budget 2001 Actual Variance Executive Office205.4K 159.0K 46.4K (23%) BoG Travel 56.0K 20.0K 36.0K (64%) President’s Office10.0K1.2K 8.8K (88%) CPMT Brochure Reprint 8.0K*0.0K 8.0K (100%) Meetings & Conferences VP 9.0K1.9K7.1K (79%) Distinguished Lecturer 20.0K6.6K 13.4K (33%) Technical Comm.22.0K 8.5K13.5K (61%) Membership Comm17.4K* 1.8K29.9K (90%) Student Programs10.0K0.0K 10.0K (100%) IEEE Packaging Award 9.0K0.0K 9.0K (100%) Graduate Fellowships40.0K20.0K 20.0K (50%) Education Committee15.5K 9.0K 6.5K (42%) Web-based Short Course30.0K0.0K 30.0K (100%) Industry Support10.0K* 0.0K 10.0K (100%) The yearly budget is our operating plan for the year. Or that we didn’t plan well. *$30K “Transferred” to Marketing

lmp2209b 2001 Financial Results (3) Board of Governors Meeting Travel Key: Feb Meeting May meeting Nov meeting Intercontinental Travel Dollars Reimbursed BoG Member Traveler $3.0K $2.5K $2.0K $1.5K $1.0K $0.5K $0.0K

lmp2209b CPMT Travel Support Policy Travel support to attend BoG Meetings: –Voting members of the BoG and Strategic Program Directors only, not to exceed $2K to attend BoG meetings ($3K if intercontinental) –No other BoG travel support Travel support for other purposes: –Identified in budget, amount and purpose –Otherwise, by approved of VP/Pres + Treasurer 2002 travel budgets were reduced 15%

lmp2209b 2001 Financial Results (4) “Overspending” Committees and Initiatives Expense Budgets: Marketing Committee 2001 Budget$ 15.0K Additional Expenditure approved by the BoG 2/10/ K Additional Expenditure approved by the BoG 5/28/ K Total Authorized Expenditure*$ 85.0K Actual 2001 Expenditures$114.3K Overrun* Additional Marketing Committee expenses paid to Potomac Communications from the Chapters budget $ 52.5K *$30K budget “Transferred” from Brochure Reprint, Chapters/Membership, Industry Support

lmp2209b 2002 CPMT Budget (Tentative) See separate spreadsheet $1.43M budget; $201K surplus before $563K Infrastructure and IEEE Corporate charges Includes $250K Book Broker income All travel budgets were cut 15% by IEEE BoD Includes part time administrator at IEEE Continues Curriculum Development Grants Increases Marketing Committee Budget Increases Award amounts + adds new award Does not include long term investment earnings Subject to final IEEE BoD approval next week

lmp2209b Motion: Motorola Fellowship Travel Support in 2002 Resolved to authorize Education Committee to overspend 2002 travel budget by up to $1.5K, to maintain $10K maximum travel support of the Motorola Fellowship. Background: –2002 budgets for travel by IEEE volunteers have been reduced 15% by Nov action of the IEEE BoD. –CPMT Education Committee Travel budget request was not for volunteer travel, but for Motorola Fellowship candidates.

lmp2209b Year 2003 Budget Planning February 2002 BoG Meeting: –Approve all proposed 2003 initiatives –Approve input parameters: fees, page counts, etc. –Submit all requests for 2002 budget CPMT Finance Committee will develop budget First pass budget due to IEEE early April –CPMT BoG Ballot in March Second pass (“Final”) budget due early August –CPMT BoG Ballot in July

lmp2209b Approve “Input Parameters” at this meeting CPMT Finance Committee will evaluate requests and formulate a budget proposal –Evaluation will be “ROI”, i.e. Cost vs. Benefit –Benefits need to be identified with the request –Requests will be selected for merit vs. affordability –Benefit realization as well as expenditures will be tracked for accountability and future planning Year 2003 Budgeting Process

lmp2209b 2003 Budget Requests Inputs were requested for this meeting See separate spreadsheet for requests to date –Only one initiative: IEEE Field Level Award $10K start-up costs + $13K first year annual cost –$294K deficit Requests and justification needed by 2/25/01 –Specific proposals; not “placeholders”

lmp2209b Proposed Year 2003 Budget Input Parameters

lmp2209b CPMT Member Fees CPMT dues in line with other IEEE Societies – –Most include Magazine and/or Transaction(s) CPMT member subscription rates are low –Should subscription rates be modified for print vs. electronic media (or both) delivery? Draft 2003 CPMT budget is deficit $294K Decision: Charge for value delivered or stay? $5 - $9 $10 $12 - $18 $20 - $28 $30-$

lmp2209b Motion: Input Parameters Resolved to adopt Input Parameters for 2003 CPMT Budget as follows: –Keep CPMT annual dues at $10 per member –Keep member and non-member Transaction subscription rates unchanged: T-CAP$10 members,$415 non-members T-AP$10$435 T-EPM$ 5$390 –Other input parameters per spreadsheet –Subject to new recommendations from IEEE publications group

lmp2209b IEEE Financial Issues 2001 and 2002 Infrastructure/Institute-level deficits will be allocated based on Reserves –CPMT “hit” could be $770K in 2001, $561K in 2002 –TAB is considering phase in over three years of a “Principles Based” allocation means beginning 2004 Zero Institute-level deficit promised in 2003 Infrastructure/Institute-level deficit issues resolution negatively impacts CPMT net income –40% withholding of ASPP and Book Broker net –Elimination of dues allocation to TAB –Withholding of first 6% return on investment plus half of all increase in excess of 9%.