1. IEEE Sensors Council VP Finances Report Mike McShane November 2, 2013 Baltimore, MD

2. Outline 2013 Budget Review 2013 Budget adjustments 2014 Preliminary Budget Sensors Journal Pricing Proposed standard procedure & timelines to prepare budgets Conference Surplus Level New Conferences (IoT 2014 and ISSNIP, ISISS) New Journal (Internet of Things)

3. Budget Overview Income sources –Pubs (Sensors + Proceedings + new IoT) –Conferences (SENSORS, ISSNIP, ISISS, IoT) Expenses –Pubs + Conferences –Officers – travel –AdCom – travel, meetings –Exec Office (Judy) –Administrative (IEEE Overhead) Oct 27, 2012IEEE Sensor Council

4. Budget Overview SUMMARY BY COST CENTER 201220132014 ACTUALSBUDGET 00933 SENSORS JOURNAL563.7640.7579.8 01499 PERIODICAL RELATED - OTHER0.00.7 01600 NON PERIODICAL0.00.70.0 01700 MEETINGS/CONFERENCES597.0668.7659.5 01701 CONFERENCE - RELATED0.10.0 01800 ADMINISTRATION0.0 01900 COMMITTEE & OTHER0.0 TOTAL INCOME1,160.81,310.81,240.0 00100 RMBSVC INTEREST INCOME(59.1)0.0 00933 SENSORS JOURNAL383.0357.5309.2 01499 PERIODICAL RELATED - OTHER5.34.99.7 01600 NON PERIODICAL4.75.85.9 01700 MEETINGS/CONFERENCES367.0478.6414.7 01701 CONFERENCE - RELATED0.40.3 01800 ADMINISTRATION145.5155.9130.5 01900 COMMITTEE & OTHER80.177.284.4 TOTAL EXPENSE/RMBSVC926.91,080.1954.6 TOTAL NET233.9230.7285.4

5. Changed editorial svc model Budget Review *Interest income excluded Spike in journal pages

6. Budget Review *Interest income excluded Budgeted NET: $230-285k

7. 2013 Budget Adjustments Added 2000 pages to budget –May: Increase from 3000 to 4000 –Sept - Increase from 4000 to 5000 (!) Short-term impact: +~$120k expenses Long-term impact: increased income

8. 2013 Current Status (Q2) 2013 BUDGETJUN-13 YTDYEAR END FORECAST INCOMEEXPENSENETINCOMEEXPENSENETINCOMEEXPENSENET INTEREST INCOME0.0 PERIODICALS641.4362.4279.0442.0249.3192.7591.2427.8163.4 NEWSLETTERS0.0 NON PERIODICALS SALES0.75.8(5.1)0.04.0(4.0)0.75.8(5.1) MEETING/CONFERE NCES668.7478.9189.9109.2107.71.4675.3478.9196.5 ADMINISTRATION0.0155.9(155.9)0.078.0(78.0)0.0155.9(155.9) COMMITTEE/OTHER0.077.2(77.2)0.033.2(33.2)0.077.2(77.2) TOTAL1,310.81,080.1230.7551.2472.179.01,267.31,145.6121.7 Fav/(Unfav) (109.0) *Does not reflect second page increase

9. Budget Overview SUMMARY BY COST CENTER 201220132014 ACTUALSBUDGET 00933 SENSORS JOURNAL563.7640.7579.8 01499 PERIODICAL RELATED - OTHER0.00.7 01600 NON PERIODICAL0.00.70.0 01700 MEETINGS/CONFERENCES597.0668.7659.5 01701 CONFERENCE - RELATED0.10.0 01800 ADMINISTRATION0.0 01900 COMMITTEE & OTHER0.0 TOTAL INCOME1,160.81,310.81,240.0 00100 RMBSVC INTEREST INCOME(59.1)0.0 00933 SENSORS JOURNAL383.0357.5309.2 01499 PERIODICAL RELATED - OTHER5.34.99.7 01600 NON PERIODICAL4.75.85.9 01700 MEETINGS/CONFERENCES367.0478.6414.7 01701 CONFERENCE - RELATED0.40.3 01800 ADMINISTRATION145.5155.9130.5 01900 COMMITTEE & OTHER80.177.284.4 TOTAL EXPENSE/RMBSVC926.91,080.1954.6 TOTAL NET233.9230.7285.4

10. Budget Issues Overhead: Need to NET ~$130k/year above our committee expenses Committee Travel: Budget not really enough for full coverage (most years) Pubs/Conf NET must cover – investments in journal will help…but have to watch and plan accordingly Changes to algorithms!

11. Admin Costs

12. Journal Pricing Initial page count estimate will be based on previous year actuals + current year trends Pricing will aim to cover extra costs for printing (and discourage print subs) NOTE: Cannot be changed in budget after May 15 unless offset by changes elsewhere

13. Journal Prices Pages Budgeted 1,900 2,200 2,000 2,500 3,000 3,500 Actual 1,785 2,156 2,109 1,985 3,557 3,502*5,000 RATES:20072008200920102011201220132014 MEMBER/AFFLIATE GI - PRINT$33.00$35.00 $50.00 $75.00$120.00$150.00 STUDENT GI - PRINT$17.00$18.00 $25.00 $75.00$120.00$150.00 OTHER/RETIRED GI - PRINT$17.00$18.00 $25.00 $38.00$60.00$75.00 MEMBER/AFFLIATE GI - ELECTRONIC$25.00 $30.00 $45.00$50.00 STUDENT GI - ELECTRONIC$13.00 $18.00 $25.00$28.00 OTHER/RETIRED GI - ELECTRONIC$13.00 $18.00 $23.00$25.00 MEMBER/AFFLIATE GI - COMBO$46.00$48.00 $63.00 $80.00$160.00$190.00 STUDENT GI - COMBO$23.00$24.00 $31.50 $80.00$140.00$170.00 OTHER/RETIRED GI - COMBO$23.00$24.00 $31.50 $40.00$85.00$95.00 NON-MEMBER PRINT$615.00$700.00$735.00$1,000.00$1,070.00$1,190.00$1,295.00$1,550.00 NON-MEMBER ELECTRONIC$615.00$700.00$735.00$1,000.00$1,020.00$1,080.00$1,125.00$1,350.00 NON-MEMBER COMBO$768.75$875.00$918.75$1,250.00$1,340.00$1,490.00$1,555.00$1,850.00

14. Proposal: Price Increase for 2015 Cost to fulfill a print subscription: ~$73 Down from $128 in 2012! Current price of a print subscription: $150 (2014) Will (likely) propose no price increase for 2015 Unless prices increase dramatically for print subscription prices in 2013 Now that we are covering costs…we can watch subscription rates to see if numbers keep dropping

15. Journal Income Details USAGE/CONTENT/BASE BREAKDOWN Packaged Products Online Distribution YearUsageContentBaseTotal 2010A* $99,398 $130,786 $66,560 $296,743 2011A* $90,528 $130,675 $73,146 $294,349 2012A* $128,784 $154,560 $78,574 $361,918 2013F* $157,365 $180,317 $97,888 $435,569 2014B $164,918 $187,422 $78,276 $430,617

16. Internet of Things Journal (IoT-J) SC: 34% 2014: 200 pages, 6 issues –Electronic Only –Zero NET budget for Year 1 RATES: MEMBER ELECTRONIC RATE $26.00 STUDENT ELECTRONIC RATE $13.00 OTHER ELECTRONIC RATE $13.00 MBR GENERAL INTEREST ELEC $36.00 STDNT GENERAL INTEREST ELEC $18.00 OTHER GENERAL INTEREST ELEC $18.00 NM PRINT RATE $- NM ELECTRONIC LIST PRICE $375.00 NM COMBO LIST PRICE $-

17. Trans on Big Data (T-BIG?) SC: 7.5% 2015 start, if approved See John Vig’s presentation for more…

18. New Conferences ISSNIP (International Conference on Intelligent Sensors, Sensor Networks and Information Processing) –April 2-5, 2013 in Melbourne, Australia ISISS (International Symposium on Inertial Sensors and Systems) –Feb 25-26, 2014 in Laguna Beach, CA WF-IoT (Internet of Things) –Mar 6-8, 2014 in Seoul, Korea

19. ISSNIP ‘13 SC: 60% sponsor RevenueExpenseNET TB $149,500 $136,883 $12,617 SCB $ 89,700 $ 82,130 $ 7,570 TA $121,680 $116,550 $ 5,129 SCA $ 3,078

20. ISISS ‘14 SC=100% sponsor 40 abstracts submitted by first deadline 4 invited speakers Special Issue of IEEE Sensors planned RevenueExpenseNET B $ 94,500 $ 74,485 $ 20,015

21. WF-IoT ‘14 SC=11.42% sponsor ($10k seed provided) Other budget details not available

22. Conference “Surplus” Large NET viewed as negative to organizers Journal & conference are close in revenue and expense (multi-year average) Last year, we implemented inclusion of 50% of admin costs to be covered by each (~$75k) Conference budgets should include a line item of “overhead” (for internal purposes) How is it working?

23. Final Comments Overall in good financial shape –Too good? Reserves: $856K –Time to make some plans to use $! Conferences & Journal very popular

24. Discussion/Questions?

25. BACKUP SLIDES Oct 27, 2012IEEE Sensor Council

26. Budget Preparation First-pass budget: April 1  Request for input from officers when first- pass budget comes out (return by May 15) –Need estimates on: Officer travel expenses* AdCom Committee expenses* Pubs: page counts Conference –Will request approval of subscription fees Second-pass budget: July 1 Oct 27, 2012IEEE Sensor Council

27. Primary Committee Expenses Exec Dir (Judy) ~ $25k AdCom Travel ~ $20k AdCom Meeting/Accomm ~ $6k ExCom Travel ~ $14k DL Travel ~ $5k Web + Publicity ~ $3k Awards ~ $7k TOTAL: ~$84k (2014 numbers) IEEE Sensor Council

28. 2014 AdCom Expenses Fall Meeting @ Conference $6.5k –Judy / Conf Management / President –Need estimates of costs for meeting AdCom Travel support - $20k (Numbers are for 2014 budget) IEEE Sensor Council

29. AdCom Travel Limits Officers and Members-at-Large (10-12) –HOTEL: $ 1,250 (based on max 7 nights) –AIRFARE (economy only): $ 1,250 (based on average from several locations) –INCIDENTALS: $ 500 (based on estimates of parking, taxi, non-provided meals, etc)* –TOTAL $3,000 per person This exceeds our budgeted travel $ Consider changing practice? Offer more or less support? IEEE Sensor Council

30. Proposed AdCom Limits Officers and Members-at-Large (10-12) –HOTEL: $ 750 (based on max 3 nights) –½ AIRFARE (economy only): $ 675 (based on average from several locations) –INCIDENTALS: $ 275 (based on estimates of parking, taxi, non-provided meals, etc)* –TOTAL $1,700 per person Discussion Pros: This stays within our budgeted travel $ Cons: Will not support full travel… IEEE Sensor Council

31. Officer Travel Expenses President - $4500 ExCom - $6000 –VP Pubs –VP Fin –VP Conf IEEE Sensors EiC - $1500 Distinguished Lecturer - $4500 IEEE Sensor Council

32. Journal Income Algorithms Online algorithm components use three weighted factors: Base (10%) – TOTAL (Equally distributed) Content (35%) – CONTRIBUTIONS (papers in DB) Usage (55%) – CLICKS (downloads) *Budgeting based on: Content: 3-year window (CY X-2, X-3 & X-4) Usage: 1-year window (CY X-2 activity) Print algorithm components involve prior year nonmember subscriptions, budgeted pages, and budgeted nonmember price (details are in the backup slides)

33. Frozen at budgeted percentage of the payout If your pub is budgeted to get 3% of the Periodicals Package Net Distribution, then actual payout will be 3% of whatever monies is distributed. By default, there is no refresh of algorithm data points from what is budgeted. The algorithms do not adjust money flow for over- or under-publishing compared to budgeted page counts.

34. Per. Pkgs. Net Distribution Methodology (cont.) Distribution posted 4 times per year –February (35%) –June (35%) –September (all but 20% of forecast distributions by publication) –Final distribution/adjustments in FM-13

35. Budget Prep/Timing First-pass budget: April 1 Second-pass budget: July 1  Request for input when first-pass budget comes out. VP Finance needs estimates on: –Officer travel expenses –AdCom Committee expenses –Pubs: page counts –Other? Nov 2, 2005IEEE Sensor Council

36. Funding Projects or Initiatives (1 of 2) Description $$ Source of fundsNotes S/C project < $ 100K Individual Society/Council Include directly in budget. Inform TAD finance staff S/C initiative > $ 100K Individual Society/Council Endorsement by TAB FinCom then included in budget. TAB InitiativeVaries All S/C’s via TAB support algorithm Approval by TAB FinCom, SPC and TA Board Example: IEEE Conference Exchange (ICX) IEEE Initiative (S/C, TAB, or any other OU may request) > $100K IEEE Initiative pool (% of IEEE investable assets) Handled by IEEE New Initiative Committee (NIC). Rolling submission process IEEE Initiative Up to 25K IEEE Initiative pool (% of IEEE investable assets) Reduced amount and Rolling Submission Process

37. Funding Projects or Initiatives (2 of 2) Description $$ Source of fundsNotes Forecasting Up to amt of forecasted savings. Individual Society/Council Use to fund initiatives as long as budget net is met (within same year) Reserve Spending (only applies to budgeting) Depends on the Society 3% of a S/C reserve, providing IEEE and the Society meet the minimum level of reserves Total of individual Society amounts may not exceed 1% of Society and TAB reserves combined. Handled during budget process. 50% spending rule Up to ½ of S/C prior year actual operations surplus Individual S/C IEEE must meet minimum level of reserves (70% of the total reserves risk) and S/C reserves to expense ratio must be equal to or > 50% Notify TA Finance Staff during forecast to ensure total spending does not exceed ½ of the prior year operational surplus. Some restrictions apply as noted in IEEE FOM.