TAB FinCom AdHoc Committee on Infrastructure Reorganization or or how can we best cover IEEE’s Indirect Infrastructure Expenses. Definition: OU => Operating Unit Examples: Major OUs: IEEE major boards (e.g. RAB, TAB), Standards Association OUs: Societies and Councils. Presentation Outline.
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Definition: OU => Operating Unit
Major OUs: IEEE major boards (e.g. RAB, TAB), Standards Association
OUs: Societies and Councils
Indirect Infrastructure 18-23
for Revenue was Determined 24-27
Consultants and Support Attendees
These are the internal costs of doing business – there are two types:
Direct Infrastructure– these are charges for services rendered. Direct infrastructure expenses are distributed by the metric in parenthesis (The IRC proposal does not change these metric driven expenses)
Indirect Infrastructure – these are costs that can’t be assigned for any specific service rendered (The IRC proposal addresses these expenses)
What was the General Fund
How do we pay for Indirect Infrastructure Now?
Member dues & the 90% rule
*This site in the TAB financial Operations Manual has more information. Many Society Officers have access to this site with a valid IEEE web account.
All expenses, all major initiatives and everyone’s annual expenses were paid for out of the GF
1971 Society Surplus Concept established - Societies were given their
own reserve accounts(these funds were thus LOST FROM THE GENERAL FUND)
1974 Societies given credit for “Short Term” interest onreserves
accounts (these funds were thus LOST FROM THE GENERAL FUND)
1996 - Book Broker revenues given to the Societies by TAB
when the GF disappeared?
As part of the new (circa 2002) financial model,
The BoD defined that a percentage of IEEE Member dues will be allocated to cover the expenses of RAB, EAB, IEEE USA indirect infrastructure, and Spectrum & The Institute. Up to 90% of IEEE member dues was selected by the BoD as that percentage. Member dues were felt to to have growth potential and could be increased to cover future indirect infrastructure needs.
As part of the recovery from the fiscal crisis of the early 2000’s, all expenses of all OUs had been cut to the core. Many desirable activities had been set aside.
So as part of the new (ca 2002) financial model:
Up to 90% of member dues are allocated to cover the expenses of RAB, EAB, IEEE-USA indirect infrastructure, Spectrum & The Institute and to administer member dues
(Of note that of the 90%, by IEEE Bylaw I-108.5, 12% of member dues is set aside specifically for geographical entities - regions, sections, chapters, affinity groups & student branches).
Operationally, the difference between the budgeted requested percentage of member dues and 100% of member dues reduces the expense of indirect infrastructure to other OUs prior to its distribution.
Because of the fiscal crisis of the early 2000’s, all expenses of all OUs had been cut to the core. Many desirable activities had been set aside.
For 08 budget and on one of four things MUST happen:
And additional infrastructure expenses will be passed on to TAB & SA
If 90% is exceeded without a spending structure to replace the 90% rule, all funding will be AdHoc and willprobably (undoubtedly in my mind) result in an increased rate of spending (ergo higher indirect infrastructure expenses) up to the ultimate limit defined by the BoD - which is simply to not run a negative budget.
4. A new structure for funding indirect infrastructure must be developed and approved
3.IEEE Infrastructure Oversight Committee (IOC) to be restructured with 6 members with staggered 3 year terms; chair to be past IEEE Treasurer. Membership preference to be given to people who have fiscal/business acumen. Shall review all indirect infrastructure activities, baseline activities as well as new initiatives.
4.VolunteerOUs/activities under the 90% rule will develop a process for collective review of activities and prioritization of collective activities within the available funding.
revenue requirement was determined
Start date: 2008