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IEEE Region 3
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Responsibility
Region 3 finances are primarily under the management of the Treasurer. The responsibilities of the Treasurer are outlined in the Region 3 Bylaws, Article lV: Finances. The Region 3 Treasurer shall prepare the budget with the assistance of the Finance Committee (see Article IV: Section 2) and shall be responsible for the receipt, deposition and recording of all monies in the name of the Region. The Treasurer shall make only such disbursements as approved by the Region 3 Delegate/Director or the Region 3 Executive Committee. The Treasurer shall make such financial reports as may be required by IEEE Bylaws and/or Federal and State laws.
An indispensable reference for the Treasurer is the "Financial Operations Guide for Geographical Units", published by the Institute. The Treasurer should obtain a current copy for use.
Additional duties are acquired by custom and by delegation from the Region 3 Delegate/Director. The defined and additional duties are elaborated in the following paragraphs:
The Region Budget
Prudent financial management requires a carefully prepared budget and control of financial operations within the approved budget.
The Region 3 Treasurer, as Chair of the Region 3 Finance Committee, Section V.B.5. should prepare a budget proposal for the forthcoming year, and present it at the last Region 3 Executive Committee meeting of the year for adoption and "recommendation to the next year's Region 3 Executive Committee". Since there is normally a substantial change in composition of the Region 3 Executive Committee each year, it is appropriate that the "recommended" budget be presented again at the first Region 3 Executive Committee meeting of the next year with any refinements needed due to new or improved data. Adoption by the Region Executive Committee at the first meeting will provide the financial guide for that year's financial operation.
Accounts are set up to closely follow the current IEEE Annual Geographic Unit Financial Report form to make reporting easier.
Region Reserves
Region 3 reserves should be adequate but not excessive. The Region reserves should be sufficient to cover the costs of the next Region 3 Student Conference and Annual Technical Conference (SoutheastCon) in case of cancellation or other unforeseen disaster. Region 3 shall maintain two types of reserve funds, General and Designated.
General Reserves. Uncommitted funds-reserve funds which are reported as a financial asset with "no offsetting" financial liability. Typical General Reserve sources are conference income, and Region allocation. The Region 3 General Reserve should be maintained between thirty-five percent and fifty percent of the average of Region 3 actual expenses in the prior four years or previous two Region 3 Delegate/Director terms. If the General Reserves become disproportionately large, systematic steps should be taken to increase the level of activity to serve the best interests and needs of the members within the Region. Refer to the RAB Operations Manual, Section 9. 1.G. for further guidance.
Designated Reserves. Funds set apart for a specific purpose as designated by the Region 3 Delegate /Director, and the Region 3 Executive Committee or the Finance Committee with the concurrence of the Region 3 Delegate/Director. Examples of Designated Reserves are conference reserve, Sections Congress funds, and carried over Special Projects.
The Region 3 conference reserve, part of the Region 3 Conference Committee budget, is funded from surplus funds, which result from sponsorship of Region 3 conferences. This Designated Reserve fund has a cap of $100,000.00, above which the funds revert to the Region 3 General Reserve.
Region Travel Policy
At the first meeting of each year the Region 3 Executive Committee shall establish a policy for travel and reimbursement for professional members and (separately) for student activities. The Professional Travel Policy, Appendix C.1., should encourage attendance at Region 3 activities without allowing excessive expenditure of Region 3 funds. The Region 3 Student Travel Policy, Appendix C.2., should provide support rather than complete funding of travel and other expenses for student activities.
The travel policies must be thoroughly analyzed by the Treasurer to determine that no provisions will allow an unwarranted or unexpected drain on Region funds. The Region 3 Regional Student Activities Chair (RSAC) shall provide a preliminary budget to the Region 3 Finance Committee based on the approved Student Travel Policy. The Region 3 Student Activities Chair is responsible for budgeting, monitoring student expenses and approving expense vouchers prior to submitting expense vouchers to the Region 3 Delegate/Director. The Region 3 Delegate/Director directly approves all other expenses. Student expenses will be submitted on the Region 3 "Student Expense Voucher", and have the correct approval signatures. The Treasurer is responsible for monitoring all expenses to assure the Student Activities budget is a balanced budget and Region reserves are not depleted.
Establishing Bank Accounts
The primary operating bank account is the IEEE Concentration Account established by the IEEE Financial Operations staff. New signatures cards are necessary when there is a change of personnel in the offices of Region 3 Delegate/Director and Treasurer. Only one signature is required on the Region 3 checks. Both the Delegate/Director and the Treasurer are each authorized to sign checks even though it is expected that the Treasurer will be the usual signature barring incapacity. The IEEE Staff Director of Financial Services is also an approved signature in accordance with the IEEE operating procedure.
An interest bearing checking account maybe established at a bank that is convenient to the Treasurer. The Region Treasurer should investigate available competitive bank accounts, paying special attention to service charges, prevailing interest rates, minimum balances and other account requirements that would reduce Region 3 year-end general and accounting expenses. It would also be advantageous for the selected bank to have local branches where the bank account co-signers are located, which would simplify banking transactions if a vacancy occurred in the office of the Treasurer. It is customary to require only one signature on checks.
In accordance with IEEE Policy 11.14, the signature of the Staff Director - Financial Services or his designee is required on all bank account signature cards. It is Region 3 policy to have at least three signatures approved and on file at the bank; the Region 3 Treasurer, the IEEE Staff Director - Financial Services, and the Region 3 Delegate/Director and/or the Region 3 Delegate/ Director-Elect. To obtain the Staff Director - Financial Services signature the bank account signature card(s) should be sent to: Administrator, Office Operations; Financial Services, IEEE; 445 Hoes Lane, P.O. Box 1331, Piscataway, NJ08855-1331.
Banks will require a Taxpayer Identification Number for all interest bearing accounts. To quote from the Financial Operations Guide, “The Internal Revenue Service has assigned a unique employer identification number for each Section, Council, & Region that hold IEEE funds outside of the IEEE Headquarters treasury." The Employer Identification Number for Region 3 is 133181704.
The Region normally has some reserve funds which should be invested in interest bearing accounts. The Region has found it most convenient to deposit these funds with the IEEE Investment Program because professional investment management is provided by the IEEE.
Timely Collection of Funds Due the Region
Prudent financial management requires the timely collection of funds due the Region.
Institute Allocation. The primary source of Region 3 funding is the allocation provided by the Institute. The allocation is budgeted by the Institute, and the amount is accurately known at the time the Region budget is prepared. A prerequisite to issuing the rebate is filing of the prior year's IEEE Annual Geographic Unit Financial Report which is the responsibility of the Treasurer.
Project Funding. The Regional Activities Board provides funds for approved Special Projects. The amount obtained by Region 3 is determined by the amount requested, by the evaluation of the quality of the project proposals submitted, and by the aggressiveness and timeliness of the Region 3 Delegate/Director in pursuing approval by the Vice President for Regional Activities. Additional project funds are available to Region entities from Region 3 funds derived from conference surplus and/or Region 3 allocations and from other IEEE major boards. Special Projects originating from Region entities should be partially supported (cost shared) by the sponsoring entity and by each entity level having approval authority over the Special Project. For example, a special project originated by a Section should involve Area/Area-Council and Region funding participation. A listing of Region 3 Special Projects is shown in Appendix E.
IEEE-USA Funding. IEEE-USA Professional Development Funds are provided to support all IEEE-USA projects and activities. The IEEE-USA budgets an allocated amount for each Region (1-6), the amount is known at the time the Region 3 budget is prepared, so it is possible to accurately forecast this amount. The Professional Development Funds IEEE-USA Budget allocations are based on 1/3 by population, 1/3 by number of Sections plus 1/3 equally (Regions 1-6). Actual funds are made available upon receipt of acceptable validation of the prior 12 months expenditures in accordance with the IEEE-USA Operations Manual. In previous years, if the Region failed to spend the prior year's IEEE-USA Support (Professional Development) Funds, the under-expenditure would be deducted from the current year's allocation. The Treasurer can provide a valuable service to the Region by ensuring that all expenses that are properly assigned to IEEE-USA are so assigned and by keeping the Professional Activities Operation Committee (PAOC) Chair and the Region 3 Delegate/Director apprised of the status of this account. Otherwise, the Region could lose funds since any expenses not properly assigned and paid for with IEEE-USA funds must be paid from other Region 3 funds. None of the Professional Development Funds may be used to support a newsletter unless the total newsletter or that allocated portion for which support is sought is devoted to professional development.
Conference Income. Conference income has been highly variable and somewhat unpredictable. SoutheastCon financial outcome can vary from a modest surplus to a modest loss. Conservative budgeting for this item is recommended. A forecast from the Conference Committee Chair or the Conference General Chair should be obtained as a first order estimate of expectations. After the conference, follow-up with the Conference General Chair is recommended to recover first any funds that the Region advanced the conference. The IEEE Policy and Procedures Manual, Policy 10. 1.9, states, "Surplus is to be distributed within 6 months of the conference".
After the closing of the conference financial records, a distribution of the surplus or funding of the conference deficit, should be expected during the fourth quarter of the calendar year.
Southcon can be a major income producer, and an estimate from the Region's two (2) representatives (refer to Section VI. Conferences) for the Southcon Board of Directors is a good basis for budgeting this item. Distribution of the surplus is made at the direction of the Southcon Board of Directors.
Interest Income. With sound financial management, some interest income should be earned every year. An interest bearing checking account can produce a modest income, and investment of the Regions reserves can earn more. The current value of the Region 3 investment Account is reported to the Treasurer monthly by the IEEEFinancialOperationsCenter. Any earnings on the investments are automatically reinvested for the benefit of Region 3 members. If the monthly letter report is not received, the Treasurer should make appropriate inquires to the FinancialOperationsCenter.
Awards. The Region normally makes cash awards to the top three winners of the Student Paper Contest. Awards of $800.00, $500.00, and $200.00, for a total of $1,500.00, are standard. The IEEE Operations Center, Regional Activities Department, Student Activities Manager will refund, from the Life Member Fund, up to this maximum amount upon receipt of a letter request giving the names of the winners, their IEEE membership numbers, social security numbers, and the amount of their awards. The Treasurer should send this letter request immediately after the awards are made.
Contingency Funds. Should a financial crisis develop in the Region, there may be funds available from the Institute to help. Obtaining such funds will depend primarily on the Region 3 Delegate/Director presenting the Region's case to the Vice President, Regional Activities and on the merits of our case.
Section Support via Region (SSVR) Funds. The Region 3 Delegate/Director has at his/her discretion a RAB annual fund which is used to support Sections having financial difficulties which are significantly impacting or preventing normal Section operation. Region entities requiring financial assistance should send a letter to the Region Delegate/Director requesting such support, specifying the level of financial support (typically $500), and using the key words, "cannot continue operation at previous level”. Region 3 set a precedent in 1988 of funding Area/Area-Councils from the SSVR funds, using the same written procedures as for Sections.
Payment of Region Obligations
Disbursements of Region 3 funds are made with the approval of the Region 3 Delegate/Director and within the constraints of the approved budget.
Expense Vouchers. Volunteers who expend their own funds on approved Region business deserve prompt reimbursement of these expenses. The Region 3 Delegate/Director should review all vouchers for consistency with the approved Region 3 Travel Policy and for proper documentation (with receipts) and approve for payment the reimbursable expenses. The Treasurer should promptly pay these approved vouchers. The Region Delegate/Director may make notations on the vouchers of desired account allocations or the Treasurer may assign accounts based on the purpose of the expenditure. The heaviest work load of the Treasurer will occur in the two months immediately following the annual Region Committee Meeting, and time should be allocated to promptly handle the large number of vouchers that come in at that time. Region 3 policy states, “Not to exceed 30 day of incurred expenses, expense vouchers should be mailed promptly to the Region 3 Delegate/Director. The Delegate/Director will forward approved vouchers to the Treasurer for prompt disbursement”.
Conferences. The Region may provide advances to conferences from the Conference Committee reserve fund. Careful records should be kept of the amount and the expected repayment time. Since there may be a change in Treasurers between disbursement and collection, the records should be conspicuous enough to allow follow-up by the subsequent Treasurer. Consideration should be given to allowing the Region to share in the surplus of the conferences for which advances are made due to foregoing interest income on the money advanced.
Special Projects. Some projects will require advances because of the size and nature of the expenses to be incurred. The Region requires thorough reports of the use of all funds advanced and the results obtained.
Financial Records and Reports
Accurate records of income and expenses are essential to good management and in preparing the required reports. Although handwritten ledgers are adequate, a Regional Activities Department supplied financial software package, is owned by the Region. The Region 3 Treasurer should utilize the financial software package or an equivalent software program of his choice for both internal reporting and the Institutes external reporting requirements.
Balance Sheet Accounts. Balance sheet accounts should be developed to suit the needs and convenience of the Region 3 Delegate/Director and the Region Finance Committee. The financial software package supplied by the Regional Activities Department can readily produce asset, liabilities, and capital accounts that facilitate the preparation of the IEEE Annual Geographic Unit Financial Report required by the Institute.
Financial Operations Report. The Treasurer should present a “Financial Operations Report” at every meeting of the Region 3 Executive Committee and Region Committee. The same report will be useful to the Region 3 Delegate/Director, Region 3 Delegate/Director-Elect, and the various committee chairs in the monitoring and guiding of the projects and activities of the Region entities. There exist no standard template for the Region 3 Financial Operations Report Form.
Annual Report to the Institute. The Treasurer should submit the IEEE Annual Geographic Unit Financial Report, Form L-50 to the previous year's Region 3 Delegate/Director after December 31st, allowing enough time so that it can be reviewed, approved, and forwarded to reach the >IEEEOperationsCenter, Staff Director - Financial Services by the third Friday in February.
IEEE-USA Professional Development Funds Reports. The Treasurer should prepare a year-end report of PAOC expenditures which should be submitted to the Region 3 Delegate/Director, and the Chair of the Region 3 Professional Activities Operation Committee for approval. Once approved it should be sent no later than January 15th annually, to the Manager, Professional Activities Council for Engineers in the Washington office. The annual Region IEEE-USA Professional Development Funds will not be released until this report is submitted.
Audit. The financial records of the Region should be audited at the time of transition from one Treasurer to the next by the Region 3 Audit Committee (Section V.B.2.) which is appointed by the incoming Region 3 Delegate/Director. Records and accounts should be reviewed for accuracy and thoroughness. Emphasis should be on confirmation that the assets of the Region are known and correctly stated and the disbursements have been made in accordance with the approved procedures. The Audit Committee may recommend changes in the procedures and records to improve the operations of the Region.