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

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

3. 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

4. 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

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

6. Income
Budget
IEEE Sensor Council

7. 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

8. 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

9. 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

10. 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

11. Expenses

12. 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

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

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

15. 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

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

17. 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)

18. Sensors Journal
Price increases for 2010

19. 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

20. 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

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

22. Committee Expenses 2009 Budget Adjustments
2009 Budget Versus Actuals (as of Oct )
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)

23. 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

24. NZD Versus USD

25. 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

26. Issue for Discussion: Level of IEEE Staff Support
Level of IEEE editorial support has steadily increased
: $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

27. 2010 Second Pass Budget Committee Expenses
Goal for watch list – return to 2007 levels

28. 2010 Second Pass Budget A loss of $30K is currently projected,
with a $110K conference surplus

29. 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)