1. Contingency Reserve Fund Update
Desired outcome
Have one voice from the board for the upcoming Senate discussion on SWE Reserves, specifically in regards to the Contingency Reserve Fund loan
SWE Board Confidential
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2. Contingency Reserve Fund Loan
In FY10, a $625K loan was taken out of the Contingency Reserve Fund
Per the approved motion, the $625K was to be repaid within 5 years (FY14).
Nothing has been repaid to date.
No update on our plans have been given to the Senate since the money was approved.
Audited financial numbers show the $625K as a loan.
This is a financial obligation as it stands on our books right now.
SWE Board Confidential
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3. SWE Reserves Proposal If approved
Contingency Reserve Fund would be renamed to Emergency Reserve Fund and Special Project Reserve Fund
Emergency Reserve Fund
Base level = 75% of audited numbers
Special Projects Reserve Fund
Any balance above the base level of the Emergency Reserve Fund
5% of the society conference overage will go to the funds even if the Emergency Reserve Fund is already above the 75% base level
Based on audited financials available on June 30
SWE Board Confidential
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4. Path Forward
Finance Committee reviewing several projections and how they affect the fund balance
Stacey to bring to board with affect on loan
February Senate meeting
Board proposal to Senate on loan repayment
SWE Board Confidential
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5. Balances – FY10 Audited Numbers
When we did the FY12 budget, we would have had these numbers…
SWE Board Confidential
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6. Balances – FY11 Preliminary Audit
When we do the FY13 budget, we will have these yet to be official numbers to consider…
SWE Board Confidential
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7. Finance Committee Analysis
Reserve Balance does not include $625K loan repayment
Assumptions
10% increase in expenses
3% growth in balance from investments
5% of assumed $1,000K conference overage
SWE Board Confidential
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8. General Operating Reserve (GOR)
FY06 Audit
FY07
Audit
FY08 Audit
FY09
FY10
FY11
Prelim
In Thousands
Beginning Balance
$217
$376
$486
$540
$579
Operating Income / (Loss)
($252)
($386)
($661)
($1,116)
($1,192)
($433)
Conference Transfer
$411
$496
$716
$792
$929
$592
Contingency Reserve Fund Loan
$625
Ending Balance
$738 *
Most organizations combine Operating Income/Loss with Conference Transfer *
SWE Board Confidential
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9. For Saturday’s Senate Meeting
Per our financial audit, we are obligated to repay the $625K loan
If new reserves documents are approved
Will review various scenarios for fund balances taking into account growth
Analysis will include loan repayment
Report back to Senate at February meeting
SWE Board Confidential
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