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Robotics and Automation Society Business Plan Report

Robotics and Automation Society Business Plan Report. Outline. Background context Business plan principles Business process. Background Context. Current RAS Business Divisions. Four current business divisions Publications Conferences Administration Investments/Reserves. Annual

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Robotics and Automation Society Business Plan Report

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  1. Robotics and Automation SocietyBusiness PlanReport

  2. Outline • Background context • Business plan principles • Business process

  3. Background Context

  4. Current RAS Business Divisions • Four current business divisions • Publications • Conferences • Administration • Investments/Reserves

  5. Annual Operating Surplus/ Loss Market Gain Reserves Surplus/Loss Reserves Conferences Surplus Book Broker Reserves Margin Minimum per TAB 50% Op Expense Current Financial Flow Income Expenses Publications Member Fees ASPP/IEL Non-member Fees Publications Administrative Travel, Awards Tech. Comm, IEEE Market Loss Approved Initiatives Surplus /Loss

  6. Recent Financial History* * All numbers in thousands

  7. IEEE TAB Rules • Reserves can only be budgeted for initiatives in accordance with TAB rules • Cannot be budgeted for operations • IEEE TAB must approve initiative requests • Operating Fund/Watch List rule • Negative operations in 2 consecutive years => Watch List • Reserves Watch List rule • Reserve/Expenses < 0.5 of operating budget in any 2 consecutive years => Watch List

  8. Other IEEE Factors • New ASPP/IEL formula will cost RAS >$125k per year unless we can obtain more Xplore usage or more articles • Reduced Book Broker income expected • IEEE recommends non-member rates and has penalized rates below recommended • IEEE recommends that member rates cover variable publication costs • Highly variable IEEE Administration costs

  9. Financial Controls • Direct controls • Member fees (only $110k out of $2.2 mil.)* • Non-member subscription rates ($170k) • Member subscription rate ($22k) • Page charge rate ($38k) • Advertising rates ($27K) • Conference budget approval & direction *Numbers are 2003 actuals

  10. Financial Controls • Direct controls • Some expenses (travel, awards, distinguished lecturer, member activities, long range planning, technical activities) ($60k) • Page counts • Editorial reimbursed expenses ($105k)

  11. Financial Controls • Indirect controls • ASPP/IEL ($400k) • Depends on number of Xplore hits and # articles • Book broker policy • Which conference proceedings are included • # articles • # subscriptions – subscription drive • Form of subscriptions – encourage change • Electronic subscriptions avoid expense • IEEE services used

  12. IEEE Budget Process Soc. Bud. Req. IEEE TAB Budget Review & Approval } Op. Bud. ≤ Proj. inc. For year N Society Budgets   Initiative Requests April, N-1 Year N June, N-1

  13. Current RAS Unbudgeted Expense Process • These expenses come from current operating budget, not reserves • Can be added by AdCom, but stay net positive • Unbudgeted expense request brought to the Financial Activities Board prior to AdCom • VP for Finance presents the financial impact on the budget to the AdCom • The AdCom votes on funding the program

  14. Current Unbudgeted Expense Input Required • Program title • Name of the proposer (responsible for annual report) • Starting and ending dates • Amount requested • Funds administered by (committee, etc.) • Brief description • Expected benefit to Society

  15. Recent Approved Initiatives & Unbudgeted Expenses • T-ASE startup $300k • Member Activities -- Virtual Communities $ 3k • RAS Chapter of the Year Award $ 1k/yr • RAS Technical Activities initiatives $ 10k • Long Range Planning Committee initiative $ 5k • IEEE Field Award $ 10k+/yr • Distinguished Service Awards $ 3k/yr • EdCom initiatives $ 12k • Distinguished Lecturers Program $ 9k/yr • Archiving pre-1988 publications $ 35k   • Note: Recurring expenses must transition to operating budget

  16. Some Observations • Standard deviation of operating net was $208k • IEEE Tax part of operating budget since 2002 • Excluding effects of IEEE Tax or market variations, the operating surplus could be reduced without much danger of going on Watch List • The largest market reduction in reserves was $383k • TAB reserve requirement: $970k

  17. Business Principles

  18. Motion The business principles and processes listed below shall be adopted as the basis for RAS financial operations.

  19. Business Plan Principles • There shall be a process to annually review business divisions and set operating and reserves goals • Non-member income should support member services • Operating budget surplus and initiatives shall be targeted to manage reserves • Consideration should be given to control member costs as well as to new initiatives

  20. Business Plan Principles • Our reserves shall • Be maintained at or above the TAB specified minimum plus a safety term • Suggest TAB min + 50% worst market loss + initiative capacity • For example, ($1,940k/2) + ($383k/2) + $125k ≈ $1,300k • Be the basis for establishing new initiatives • Initiatives are a mechanism for using our reserves to benefit members

  21. Business Plan Principles • While initiatives are encouraged when resources are available, strong proposals are expected. • Reserves should not be spent simply because the excess reserves are substantial • The initiative process shall consider • Member inputs • Income sources and budget impact • Formal independent review of initiative • Transition from initiative to ongoing expense or sunset

  22. Business Plan Principles • Expenses (to members) of carrying out society business shall be reimbursed • Members should not normally be paid for society activities • Major business activities should be led by member volunteers but supported by professional services, either inside or outside the IEEE • As a volunteer-run Society, consideration should continually be given to business simplification

  23. Business Process

  24. Annual Business Process • FAB review of ongoing activities, in conjunction with boards where appropriate • Benefit/cost review of initiatives at end of period • Self study from initiative managers • Independent review • If appropriate, recommendation on continuation or termination

  25. Annual Business Process • Divide new initiatives into two categories • Fixed duration • Secondary impact on budget, use reserve funds • Expected ongoing activity • Possible initial reserve funding • Assess long term operating budget impact • Minimum size unspecified, but est. $5,000 • Require detailed proposal for initiatives • All information required for unbudgeted expenses • If over $X, a process plan for implementation • Evaluation plan

  26. Annual Business Process • Obtain LRPC input on desired annual initiative capacity • Board reviews, AdCom decisions; • Set ongoing expense budget • Set target reserve level • Target budget surplus goal to move toward desired reserve level, while avoiding Watch List problems.

  27. Society Budget Process Committees generate initiative ideas & prelim proposals Review by VPs/Brds or LRPC Detailed proposals prepared  Member Inputs    Winter, N-1 Fall, N-2

  28. Rates Conference Goals Initiative Decisions Reserve Goals Budget Decisions Business Process Initiative Activity Review Anticipated External Factors AdCom Review & Decisions Initiative Requests by VPs, LRPC FAB Financial Analysis Initiative Capacity Request: LRPC Prop. Bud. ExCom Review Financial Status Spring, N-1 ICRA, N-1

  29. IEEE Budget Process Soc. Bud. Req. IEEE TAB Budget Review & Approval } Op. Bud. ≤ Proj. inc. For year N Society Budgets   Initiative Requests April, N-1 Year N June, N-1

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