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CPMT Treasurer’s Report28 May 2001

2000 Financial Results

CPMT Financial Reserves

2001 YTD Financial Results

Year 2002 Budget

2002 Budget Development Process

Budget groundrules and constraints

Discussion Budget

Delete or add priorities

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• See separate spreadsheet of actuals vs. budget

• 2000 CPMT Surplus was $367.7K

– Dues less processing charges $ 14.0K $ 12.2K – Interest and investment earnings 479.7K 19.9K– Net from publications 331.3K 442.0K– Net from conferences/proceedings 314.4K 345.5K– Committees, etc. underspent 173.7K 134.0K

2000 Financial Results

1999 2000

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CPMT Financial Reserves

CPMT Society Accumulated Financial Reserve

0

1000

2000

3000

4000

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000Year

Yea

r-en

d R

eser

ve (

$K)

•2000 Year-end financial reserves: $2,969K

$3,019K 1999 Year End + 368K 2000 Surplus - 418K 2000 Reduction $2,969K 2000 Year End

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2001 CPMT Budget• See separate spreadsheet

• $1.47M expenses; $7.4K surplus

• Includes $237K for initiatives

• Does not reflect Reduction of Reserves for IEEE Infra-structure charges ($630K)

• 2001 YTD actuals vs. budget are okay– Administrator, Web-based tutorial not started– Some committees and initiatives underspending

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CPMT 2001 Initiatives

• Full-time administrator at IEEE $72K• Increased BoG Travel Support + $40K• Graduate Fellowship additional year $40K• Web-based courses development $30K• Marketing $15K• Industry Support Programs $10K• Student Programs $10K• IEEE Packaging Award initial expense $ 9K• Reprint CPMT Brochure $ 8K• Newsletter Upgrade + $ 3K

$ 237K

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CPMT 2002 BudgetDiscussion Agenda:

Budget Development Process

Budget Groundrules and Constraints

Presentation of Discussion Budget

Discussion of Expense Items

Motion to approve Discussion Budget

Motion to approve Deletion Priorities

Motion to approve Addition Priorities

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2002 Budget Development Process• Society determines next year Input Parameters (2/01)• IEEE calculates revenue and expense from IEEE (4/01)• Society “First Pass” reviewed by staff, approvers (5/01)• IEEE revises allocations, distributions (7/01)• Society submits “final” budget (8/01)• Last change opportunity (9/01)• Reviews and approvals:

– TAD, IEEE Staff – IEEE Finance Committee

– TAB Finance Committee – IEEE Executive Committee– Technical Activities Board – IEEE Board of Directors

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2002 Budget Development Status

• IEEE BoD Infrastructure Recovery Committee

• April Baseline Budget was overall deficit

• First Pass budgets were even more deficit

• IEEE BoD decision to balance overall in 2002– IEEE BoD increasing revenue, cutting expenses– % of ASPP, BB, Conf. to cover Infrastructure– All IEEE entities must improve their bottom line

• Societies: Baseline Net + (28% Expense or 25% Revenue)

• CPMT: $133.2K surplus + $41.3K = 174.5K surplus

– (Implement “Pay-by-the-Drink” accounting)

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CPMT 2002 Discussion Budget• Reformatted to show spendable net revenue

– Uses IEEE publications revenue numbers• Assumes use of Document Central papers processing

– Assumes $200K conferences net + Book Broker

– Provides $233.9K for Infrastructure Recovery• Assume no interest and investment income• Assumes 60% of ASPP net revenue• Assumes 60% of Book Broker net revenue• Assumes $10 charge per Conference attendee• Assumes 50% increase in TAB charges

• Break even bottom line

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Income ($K) ($K) ($K) ($K) ($K) ($K)Interest and Investment Income 479.9 19.9 32.6 0.0 0.0 0.0CPMT Fees 34.4 32.6 34.6 35.9 35.8 35.9 Less dues processing fees (20.4) (20.4) (21.4) (22.3) (22.3) (22.3)Dues net income subtotal 14.0 12.2 13.2 13.6 13.5 13.6Transactions - CPT 230.0 291.8 280.2 311.8 270.6 311.8 -25% ASPP (49.2)

Transactions Expense- CPT1 (98.8) (127.8) (121.9) (124.3) (124.3) (124.3) Document Central and (14.0)Transactions - AP 242.9 298.9 277.5 294.1 260.3 294.1 -25% ASPP (48.2) Transactions Expense - AP1 (111.7) (127.4) (128.0) (130.4) (135.1) (130.4) Document Central and (12.0)Transactions - EPM 134.8 167.6 161.0 187.8 152.8 187.8 -25% ASPP (37.5) Transactions Expense - (64.6) (64.5) (69.7) (71.0) (71.0) (71.0) Document Central and (12.0)Periodical Related - Other, Net (6.8) 3.5 (5.9) (6.1) (5.2) 3.0Newsletters 3.3 0.0 0.0Non-Periodical, Net 2.1 (3.4) (1.0) (0.9) 0.0 0.0Pubs. net income subtotal 327.9 442.0 392.2 461.0 348.1 298.1Meetings/Conferences 1,073.0 592.1 863.4 984.0 580.0 549.0 - 25% Book Broker (53.1) Meetings & Conferences Exp. (758.5) (246.6) (635.4) (648.1) (330.0) (200.0) - "Head Tax" of $10/attendee (20.0)Conf. net income subtotal 314.5 345.5 228.0 335.9 250.0 275.9Other income 11.1 1.0 0.0 0.0 0.0

Total Net Revenue 1,147.4 820.6 666.0 810.5 611.6 587.6Administrative Expense (18.9) (58.0) (69.3) (72.1) (67.7) (72.1) + 50% of TAB Support (25.9)

Total Discretionary Income 1,128.5 762.6 596.7 738.4 543.9 489.6

Discussion Budget Income

$ 49.2K 48.2K 37.5K 53.1K 20 K 25.9K$233.9K

- 174.5K$ 59.4K

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Discussion Budget ExpensesTotal Discretionary Income 1,128.5 762.6 596.7 738.4 543.9 489.6Expenses

Newsletter 12.9 15.8 21.0 21.4 21.0 20.0 0.0Transactions Archival CD-ROM 25.0 74.2Committee & Other Executive Office 133.3 136.3 205.4 213.6 213.6 153.6 52.0 Presidents Office 3.3 6.0 10.0 10.2 10.0 5.0 5.0 Reprint CPMT Brochure 8.0 8.2 0.0 0.0 Publications VP 0.4 1.1 3.0 3.1 3.0 3.0 Meetings and Conference 4.1 1.9 9.0 9.2 12.0 8.0 4.0 Travel $5K Adcom Committee (BoG) 17.8 30.8 70.0 71.4 77.0 77.0 Travel $62K Chapter Committee 11.6 22.9 60.0 61.2 60.0 40.0 20.0 Travel $8K. Distinguished Lecturer 10.0 13.4 20.0 20.4 20.0 15.0 5.0 Travel $20K Technical Committee 2.1 2.8 22.0 22.4 10.0 8.0 2.0 Membership Committee 10.3 7.5 17.4 17.7 21.0 16.0 5.0 Travel $3K Student Programs 10.0 10.2 10.0 7.0 3.0 Travel $4K Operating Committee 2.2 0.0 5.0 5.1 5.0 2.0 3.0 Awards Committee 10.2 5.2 11.0 11.2 34.0 24.0 10.0 IEEE Packaging Award 9.0 9.2 270.0 0.0 270.0 Approval can proceed in 2002 without funding. Fellowships - Graduate 40.0 40.0 40.0 40.8 0.0 33.0 One curriculum development fellowship. Education Committee 8.5 10.8 15.5 15.8 13.5 13.0 0.0 Travel $10K Travel (Motorola Fellowship) Web-based short courses 30.0 30.6 0.0 0.0 45.0 Requested: $115K. Marketing Committee 15.0 15.3 50.0 50.0 25.0 Placeholder. Subject to definition and justification. Industry Support 10.0 10.2 10.0 5.0 5.0 Placeholder. No champion or plan yet International Programs 10.0 10.0 Other Committee 0.5 0.2 3.0 3.1 8.0 7.0 1.0 Includes V.P. Admin. Discretionary Web 4.0 5.0 5.1 3.0 3.0 2.0 50th Anniv. History Project 18.5 11.3 0.0 50th Anniv. Commerations 9.6 0.0 Far East Delegations 13.5 0.0Rmbsvc (14.1) (8.4) (10.0) (10.2) (10.0) (10.0) (10.0) Total Expenses 300.6 394.9 589.3 605.2 851.1 489.6 447.0

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Budget Line Name: ___________________________________

CPMT 2002 Budget Development Information 5/28/01 Requested: $_______KIn Budget: $_______KNot included: $_______K

Submitter: ___________________________

Description Value/Benefit Justification Benefit Metric

Req

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How you will measure that these benefits have been achieved

• Justification for each effort or activity, in terms of value or benefit to CPMT members, CPMT Society, or the components, packaging, and manufacturing technology professions

• What can still be done with the funding amount in the Discussion Budget

How you will measure that this benefits have been achieved

• What value and benefits can still be delivered with the Discussion Budget funding

1. The numbered priority in which you would add efforts or activities (1. = add first) if the budget for this line item could be increased

1. For each numbered addition what increase of value and benefits will result from this addition

1. The numbered priority in which you would delete efforts or activities (1. = delete first) if the budget needed to be further reduced

1. The impact of deferral (by number)

1. For each numbered deletion what loss of value and benefits will result from this deletion

Can we do in 2003?

Can we do in 2003?

• Description and scope of proposed efforts and activities

Name

$amts

Budget line name

1. The impact of deferral (by number)

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Expenses DiscussionExpenses

Newsletter 12.9 15.8 21.0 21.4 21.0 20.0 0.0Transactions Archival CD-ROM 25.0 74.2Committee & Other Executive Office 133.3 136.3 205.4 213.6 213.6 153.6 52.0 Presidents Office 3.3 6.0 10.0 10.2 10.0 5.0 5.0 Reprint CPMT Brochure 8.0 8.2 0.0 0.0 Publications VP 0.4 1.1 3.0 3.1 3.0 3.0 Meetings and Conference V.P. 4.1 1.9 9.0 9.2 12.0 8.0 4.0 Travel $5K Adcom Committee (BoG) 17.8 30.8 70.0 71.4 77.0 77.0 Travel $62K Chapter Committee 11.6 22.9 60.0 61.2 60.0 40.0 20.0 Travel $8K. Distinguished Lecturer 10.0 13.4 20.0 20.4 20.0 15.0 5.0 Travel $20K Technical Committee 2.1 2.8 22.0 22.4 10.0 8.0 2.0 Membership Committee 10.3 7.5 17.4 17.7 21.0 16.0 5.0 Travel $3K Student Programs 10.0 10.2 10.0 7.0 3.0 Travel $4K Operating Committee 2.2 0.0 5.0 5.1 5.0 2.0 3.0 Awards Committee 10.2 5.2 11.0 11.2 34.0 24.0 10.0 IEEE Packaging Award 9.0 9.2 270.0 0.0 270.0 Approval can proceed in 2002 without funding. Fellowships - Graduate 40.0 40.0 40.0 40.8 0.0 33.0 One curriculum development fellowship. Education Committee 8.5 10.8 15.5 15.8 13.5 13.0 0.0 Travel $10K Travel (Motorola Fellowship) Web-based short courses 30.0 30.6 0.0 0.0 45.0 Requested: $115K. Marketing Committee 15.0 15.3 50.0 50.0 25.0 Placeholder. Subject to definition and justification. Industry Support 10.0 10.2 10.0 5.0 5.0 Placeholder. No champion or plan yet International Programs 10.0 10.0 Other Committee 0.5 0.2 3.0 3.1 8.0 7.0 1.0 Includes V.P. Admin. Discretionary Web 4.0 5.0 5.1 3.0 3.0 2.0 50th Anniv. History Project 18.5 11.3 0.0 50th Anniv. Commerations 9.6 0.0 Far East Delegations 13.5 0.0Rmbsvc (14.1) (8.4) (10.0) (10.2) (10.0) (10.0) (10.0) Total Expenses 300.6 394.9 589.3 605.2 851.1 489.6 447.0

Total Net3 827.9 367.7 7.4 133.2 (307.2) 0.0 (447.0)

palmer_ lm:$65K was requested as follows:Chapter of the Year Award $2,000Chapters Meetings $35,000Chapter Subsidy Program $5,000Chapter Web Sites $5,000Region Champions $2,000Travel to Chapters $10,000Globalization Meetings $6,000A total of $5K from Globalization Meetings and Travel to Chapters was moved to International Programs, for a remaining net request of $60K total

palmer_ lm:$23.5K was requested as follows:Membership Advertising $3,000Membership Program Support $4,000 Affiliate Recruitment Membership Retreat New Member Welcome Kit Longevity Recognition New Sr. Member Welcome KitMembership Subsidies $6,000 FSU China Other Developing AreasGlobal Recruitment Travel $5,500Membership Web Site $5,000$2.5K was moved from Global Recruitment Travel to International Programs, for a remaining net request of $21K total

palmer_ lm:Historically, awards have been $11K. The Feb 2001 BoG meeting approved increasing the number and amount of awards to $34K, including some $10K for "spot recognition" of contributions.

palmer_ lm:An increase to $25K was approved at the Feb. 01 BoG Meeting to fund a study by the Potomac Group. A motion to approve an additional $60K to implement study findings is proposed to be approved at the May 01 BoG Meeting.

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Budget Line Name: ___________________________________

CPMT 2002 Budget Development Information 5/28/01 Requested: $_______KIn Budget: $_______KNot included: $_______K

Submitter: ___________________________

Description Value/Benefit Justification Benefit Metric

Req

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How you will measure that these benefits have been achieved

• Justification for each effort or activity, in terms of value or benefit to CPMT members, CPMT Society, or the components, packaging, and manufacturing technology professions

• What can still be done with the funding amount in the Discussion Budget

How you will measure that this benefits have been achieved

• What value and benefits can still be delivered with the Discussion Budget funding

1. The numbered priority in which you would add efforts or activities (1. = add first) if the budget for this line item could be increased

1. For each numbered addition what increase of value and benefits will result from this addition

1. The numbered priority in which you would delete efforts or activities (1. = delete first) if the budget needed to be further reduced

1. The impact of deferral (by number)

1. For each numbered deletion what loss of value and benefits will result from this deletion

Can we do in 2003?

Can we do in 2003?

• Description and scope of proposed efforts and activities

Name

$amts

Budget line name

1. The impact of deferral (by number)

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Budget Line Name: ___________________________________

CPMT 2002 Budget Development Information 5/28/01 Requested: $_______KIn Budget: $_______KNot included: $_______K

Submitter: ___________________________

Description Value/Benefit Justification Benefit Metric

Req

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Continued smooth Society operations

Reduced que time of papers

Committee results

• All that Marsha does to manage the Society and support officers, volunteers, and members

• Administer electronic tracking of Transactions documents and support officers, committees and strategic directors

• Executive Director at IEEE headquarters

Continued smooth Sociey operation

• All that Marsha does to manage the Society and support officers, volunteers, and members

1.Add half time Administrative Assistant (+$22K)

2. Add full-time AA (--> $52K)

1.For each numbered addition what increase of value and benefits will result from this addition

1.Reduce Executive Director to half time (-73.6K)

2.Eliminate Executive Office

(- another 80K)

1.Reduced Exec. Office Support

2.No Exec. Office

1.For each numbered deletion what loss of value and benefits will result from this deletion

Can we do in 2003?

Can we do in 2003?

• Executive Director at IEEE headquarters

• Full time Administrative Assistant

Merrill Palmer

213.6153.6

52 1CPMT Executive Office

1. Okay to defer. Not essential.

2. Same

1Partially offset by $8K less editorial expense.

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Budget Line Name: ___________________________________

CPMT 2002 Budget Development Information 5/28/01 Requested: $_______KIn Budget: $_______KNot included: $_______K

Submitter: ___________________________

Description Value/Benefit Justification Benefit Metric

Req

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Continued smooth Society operations

Reduced que time of papers

Committee results

• Continued BoG meeting frequency

• Presently approved levels of travel support

• Three meetings per year

• $62K travel support for BoG members

Continued smooth Sociey operation

• Continued BoG meeting frequency

• Presently approved levels of travel support

N/A. Full request included.

1.Eliminate non-U.S. meeting (-18K)

2.Reduce travel support to $1.5K/2.5K (-$10K)

3. Reduce to 2 meetings/year with $1.35K/$2K travel (-14K)

All: Could reinstate later if we decided on any of these cuts.

1.Give up whatever Internationalization goals are meant to be served

2. Reduced member travel support

3. Fewer face-to-face BoG meetings

Can we do in 2003?

Can we do in 2003?

• Three meetings per year

• $62K travel support for BoG members

Merrill Palmer

7777

0Board of Governors Expense

1Partially offset by $8K less editorial expense.

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Budget Line Name: ___________________________________

CPMT 2002 Budget Development Information 5/28/01 Requested: $_______KIn Budget: $_______KNot included: $_______K

Submitter: ___________________________

Description Value/Benefit Justification Benefit Metric

Req

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Additional Discussion of Requests:Ralph Russell

Chapters CommitteeMembership Committee

Al PuttlitzDistinguished Lecturer ProgramCD-ROM Short Course

John SegelkenAwards Committee

Connie SwagerMarketing Committee

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Motion: To approve the CPMT 2002 budget shown by the “Revised Proposed” column of spreadsheet “02BoG1515.xls”.

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Motion: To approve “Deletions Ranking List” of priority in which line items will be reduced or removed from the above budget as necessary to obtain IEEE approval.

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Total Additons: $K 0.0

Comments/Recommendations1 2 3

Document Central, T-CPT 10.0 0.00 Reduction must be all or none.

Document Central, T-AP 10.0 0.00 Reduction must be all or none.

Document Central, T-EPM 10.0 0.00 Reduction must be all or none.

Newsletter 20.0 0.00

Executive Office 153.6 0.00 Half ($73.6K) or all or none.

Presidents Office 5.0 0.00

Publications VP 3.0 0.00

Meetings and Conference V.P. 8.0 0.00

Adcom Committee (BoG) 77.0 0.00 $62K is travel support.

Chapter Committee 40.0 0.00

Distinguished Lecturer 15.0 0.00

Technical Committee 8.0 0.00

Membership Committee 16.0 0.00

Student Programs 7.0 0.00

Operating Committee 2.0 0.00

Awards Committee 24.0 0.00

IEEE Packaging Award 0.0 0.00

Fellowships - Graduate 33.0 0.00 Keep all or none.

Education Committee 13.0 0.00 Keep $10K MOT fellowship

Marketing Committee 50.0 0.00

Industry Support 5.0 0.00

International Programs 10.0 0.00

Other Committee 7.0 0.00

Web 3.0 0.00

0.00

Deletion Amount

Priority Composite Priority

Budget LineBudget Amount

Deletions Priority Worksheet

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Motion: To approve “Additions Ranking List” of priority in which line items will be added to the above budget within approval constraints received from IEEE.

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Total Additons: $K 120.0

Comments/Recommendations1 2 3

Marketing Committee 50.0 25.0 15 4 2 19.40 25

half-time admin 30 2 10 4 12.40 30

Web-based (CD-ROM) course 0.0 45.0 4 4 4 9.60 45

Marketing Committee 25 6 6 8.40 17

Distinguished Lecturer 15.0 5.0 3 0 3 4.80 3

Student Programs 7.0 3.0 0 1 4 3.20 120

Awards Committee 24.0 10.0 0 2 2 2.80 Keep $11K present levels

Meetings and Conference V.P. 8.0 4.0 1 0 0 1.00

Technical Committee 8.0 2.0 0 0 1 0.60

Executive Office 153.6 52.0 0 0 0 0.00 All (or half) or none. Add AA

Presidents Office 5.0 5.0 0 0 0 0.00

Publications VP 3.0 0.00

Adcom Committee (BoG) 77.0 0.00 $62K is travel support.

Chapter Committee 40.0 20.0 0.00

Membership Committee 16.0 5.0 0.00

Operating Committee 2.0 3.0 0.00

IEEE Packaging Award 0.0 270.0 0.00 Can proceed in 2002 w/o budget

Fellowships - Graduate 33.0 0.00 Keep all or none.

Education Committee 13.0 0.00 Keep $10K MOT fellowship

Industry Support 5.0 5.0 0.00

International Programs 10.0 0.00

Other Committee 7.0 1.0 0.00

Web 3.0 2.0 0.00

Addition Amount

Priority Composite Priority

Budget LineBudget Amount

Requests Not in

Additions Priority Worksheet