MGA Financial Reporting Policy Changes 2011 Sat Basu

MGA Financial Reporting Policy Changes 2011 Sat Basu Region 4 Finance Analyst Region 4 Meeting 2011 Section Congress Thursday, August 18, 2011 1

MGA Financial Reporting Policy Changes 2011 MGA Allocation Ad-Hoc Committee • Joe Lillie, Chair • Rob Anderson, MGA Treasurer –Other Volunteer Members • Staff Members – Larry Bolsch, Director-Fin. & Admin. –Other Staff Members • Regional Finance Analysts –Ten Volunteers –Sat Basu, Region 4 2

MGA Financial Reporting Policy Changes 2011 Charges Assigned to Ad-Hoc-Com. • Review the Region L 50 Financial Reports • Relationship of L 50 with Region Finance Functions • Identify Opportunities on Consistency on Reporting • Review the allocation of Member Dues • Review Major Expenses • Review Region Assessments • Review Region Allocation Algorithms 3

MGA Financial Reporting Policy Changes 2011 Ad-Hoc-Com. Accomplishments • Consolidation of Five Years Financial Data by Unit • Summarization of Finance Data - Categories/Activities • Review of Accumulated Financial Data • Collection & Review of Regional Assessment History • Review of Regional Reserve Data • Relationship of Revenue, Expense and Reserve • Special Items 4

MGA Financial Reporting Policy Changes 2011 Major Items on Finance Reporting • Regional Meetings [Including Social Events] • Publication [Including Advertizing] • Conferences • Activity/Program – Education/Professional/Students • Addl. Act. /Pgm. – Communication/Membership/Technical • Awards /Grants • Travel Finance – Regional/Board/Section-Congress/Others • Leadership Finances – Region/Section/Chapter/Society • Other Mgmt. & Genl. Finances [ Including Salaries] 5

MGA Financial Reporting Policy Changes 2011 Financial Data Analysis • Analyze L 50 [Trends & Consistency] – Link Membership • Link Activities to Regional Member Support Processes • Review Geographical Unit Funding [Allocations, Assessments, Rebates, etc. ] – Link with Membership • Review Associate Financial Impact of Non-MGA Member [Affiliate, ] Activity 6

MGA Financial Reporting Policy Changes 2011 Compare Membership with Finance • Identify Sources & Uses of Member Dues and Associated Supports • Determine Additional Revenues and/or Reduce Expenses • Review Allocation and Link with Needs • List, Monitor and Measure Membership Support Activities • Incorporate Algorithms on Allocations, Assessments , Rebates, Others 7

MGA Financial Reporting Policy Changes 2011 Solution Selection Process • Review Previous Solution Process – Net Ledger, Quick-books, Peach-Tree – Not Suitable and/or Not Cost-Effective • Present Solution Process – Net Suite chosen - Oracle based Solution –Cost Absorbed by IEEE – Compliance, Transparency, Interactive Reporting – Financial Statements and Tax Return Easy • MGA, Accounting, Treasury & IT Reviews Complete – Reviewed by all stakeholders – Socialized and Endorsed by all MGA Volunteer Committees – MGA Board and Related Ad Hoc Committees [Operations, Finance , others] 8

MGA Financial Reporting Policy Changes 2011 Advantages • Financial Statements Match the Geo Unit Finance Data • Net-Suite allows continuous all year processing – Integration of CBRS with Geographical Unit Accounts – Bank Reconciliations automated with Journal Entry – Timely Financial Data Consolidation by Head Quarters • Versatility of Currency and Language • Enable Downward Visibility Region/Section/Chapters • Online L 50 Financial Reporting • Future Plans Include Enterprise Solutions 9

MGA Financial Reporting Policy Changes 2011 Technology and User Highlights • Reviewed => Data Security, Integrity, Access, Security, Architecture • Addressed => Development / User Acceptance Testing (UAT), Audit • Web Based Platform => License Cost-[No Equipment/Maintenance/Server] • Reliability => Over 99. 5% Up-Time [24/7 Support], Down-Time Refund • Integration => Applications like CBRS, Report on Local Currency or USD • Administrative => Business Units will Maintain Rights • Remote Access => Net Suite is accessible almost Universally • Flexibility => Multi Currency, Multi Language • Training=> Training Material and “Train the Trainer” is included 10

MGA Financial Reporting Policy Changes 2011 Other Benefits • User Interfaces and Modifications on IEEE specifications • Easier L 50 paper processing in the Finance & Administration Departments • Earlier Consolidated Finance Data will Reduce Audit Fees • Increased Internal Controls & Financial Statement Transparency • Response and Resolution to prior year Management Letter Comments • File backup available. • Multiple Currencies, Multiple Languages Available to End-Users • System Utilization at Non-US Offices-India, China, Russia, Japan, Singapore 11

MGA Financial Reporting Policy Changes 2011 Testing and Implementation Status • Business Requirement Document [BRD] Complete • IT Project Manager Assigned • Vendor On-Site- all Preliminaries Complete • Demonstration to Management Council Complete • Reviewed and Endorsed by Major MGA Stakeholders • Full Scale Demonstration at Sections Congress 2011 • Roll-Out and Implementation by End of 2011 12

MGA Financial Reporting Policy Changes 2011 Proposed Account Items • REGIONAL PLANNING, MEETINGS AND SOCIAL EVENTS Classify as a receipt of any money generated and deposited in a bank account for regularly scheduled regional planning and meetings or social events (including dinner meetings). IEEE Meeting Report must be completed for each meeting or event and submitted as soon as possible. • REGIONAL PLANNING, MEETINGS AND SOCIAL EVENTS: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of regional planning and meetings or social events throughout the year. 13

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • CONFERENCES Include all conference expenditures except those related to conference publications and advertising which should be classified on lines X. XX, X. XX. It is important that conference receipts and disbursements be fully recorded and not just the net results. For more than one conference, attach a schedule listing each conference and the related Receipts/Disbursements. • CONFERENCES: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of conference throughout the year. 14

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • CONFERENCES Include all conference expenditures except those related to conference publications and advertising which should be classified on lines X. XX, X. XX. It is important that conference receipts and disbursements be fully recorded and not just the net results. For more than one conference, attach a schedule listing each conference and the related Receipts/Disbursements. • CONFERENCES: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of conference throughout the year. 15

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • CONFERENCE SUPPORT Enter cash and accrued expenses related to conference support to other Geo Units. • LEADERSHIP PROGRAMS Include disbursements incurred in organizing, promoting, and conducting lectures, videos, group discussions, and workshops provided to enrich the learning experience that immerses the Geo Unit leadership in the qualities of an effective officer for the Unit. 16

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • LEADERSHIP PROGRAMS: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of leadership programs. • PROGRAM DELIVERY: EDUCATION, PROFESSIONALS, STUDENTS Include disbursements incurred in organizing, promoting, and conducting educational, student, or professional activities sponsored by the Unit. Examples include the instructor’s or lecturer’s fees, instructional or course materials purchased for the activity, money disbursed in support of student or Student Branch activities, and any other related expenses. 17

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • EDUCATION, PROFESSIONALS, STUDENTS: WIE MEMBERSHIP This classification refers to any money disbursed in support of educational, professional, and student activities for Women in Engineering. • EDUCATION, PROFESSIONALS, STUDENTS: GOLD MEMBERSHIP This classification refers to any money disbursed in support of educational, professional, and student activities for GOLD 18

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • EDUCATION, PROFESSIONALS, STUDENTS: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of educational, professional, and student activities throughout the year • MGA BOARD MEETINGS AND SECTIONS CONGRESS All Sections Congress expenses, excluding travel, incurred over the fiscal year. 19

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • MGA BOARD MEETINGS AND SECTIONS CONGRESS: SUB ACCOUNT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period related to MGA board meetings and Sections Congress • REGION, SECTION, CHAPTER SOCIETY SUPPORT Include support payments made to other IEEE Units (respective Region, Section, Chapters). • PACE FUNDING Include all disbursement in relation to PACE funding throughout the year 20

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • TECHNICAL ACTIVITIES SUPPORT Include disbursements incurred in organizing, promoting, and conducting activities related to but not limited to advancement of theory and practice, of electrical, electronics, communications and computer engineering, as well as computer science sponsored by the Unit. • TECHNICAL ACTIVITIES SUPPORT: SUB ACCT FOR RELATED TRAVEL Enter cash and accrued expenses including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period for the attendance of technical activities. 21

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • GRANTS AND AWARDS Classify as a disbursement any approved contributions made to individuals or organizations outside IEEE. • PUBLICATIONS AND ADVERTISING Include disbursements for all forms of publications including newsletters, abstracts, reprints, and conference publications and proceedings. Also include any expense related to advertising by IEEE and non-IEEE entities, publications, or conferences. 22

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • OTHER MANAGEMENT, GENERAL AND ADMINISTRATIVE Include all other expenditures incurred when soliciting IEEE activities. • OTHER TRAVEL NOT ASSOCIATED WITH PROGRAMS ABOVE Include all other travel expenditures including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period incurred that do not fit any category listed above. 23

MGA Financial Reporting Policy Changes 2011 Proposed Account Items [Continued] • OTHER MANAGEMENT, GENERAL AND ADMINISTRATIVE Include all other expenditures incurred when soliciting IEEE activities. • OTHER TRAVEL NOT ASSOCIATED WITH PROGRAMS ABOVE Include all other travel expenditures including air, train, auto, tolls, parking, mileage, meeting rooms, equipment, hotel and meals during the travel period incurred that do not fit any category listed above. 24