section & affinity group financesfiles.asme.org/events/ltc13/34333.pdf · section &...

SECTION & AFFINITY GROUP FINANCES

2013 LTC – St. Louis, MO – Feb 28 to Mar 3

Leonard A. Anderson, PE AndersonL@asme.org

Mandy L. Cowgill BrogdonM1@asme.org

Elio A. Manes ManesE@asme.org

OBJECTIVES

1. Overview of ASME Section & Affinity Group financial operations

2. Reference to ASME policies

3. Consolidated Banking

4. Merit-Based Funding Process and relationship to unit operations – budgeting and planning

5. Custodian Funds

OUTLINE – Part I

• Basics

• Handout Inventory

• Expenses

• Income

• Success Stories

• Events

• Section / Affinity Group Funds

• Continue on to Consolidated Banking

• Expenses (Uses for Funds): What does

an ASME Section or Affinity Group spend

funds for?

• Income (Sources of Funds): Where does

an ASME Section or Affinity Group get its

operating funds?

• Fiscal Year: How does ASME‟s Fiscal Year

differ from the calendar year? (July 1 –

June 30 vs. Jan 1 – Dec. 31)

BASICS

HANDOUTS

• Overview of specific financial information - LTC_financial_handout_13.doc

• Dayton Engineering Sciences Symposium.pdf

• Event essentials – Events.doc

• Custodian Fund Explanation.pdf

• MBF handout - Sections.doc

• MBF handout - Affinity Groups.doc

EXPENSES

• Meetings, tours, conferences, short courses and special projects

• Recognition, honors and awards

• Support for officers and members to participate in ASME programs

• Speaker programs

• Scholarship programs

• Newsletters and other member communications

SECTION INCOME -

DUES CONTRIBUTION • FY08 (1st yr) ~$95K; FY09 ~$87K;

FY10 - ~$83K; FY 11 ~ $85K donated; FY 12 ~ $102K donated

• FY 13 ~$142K donated

• Checks / EFTs should have been distributed by now for FY 13

• Consider sending out reminders to Members to renew and mention they can donate directly to the Section on their dues statement

How Do We Raise Money?

Ask for it! NOTE: if doing any major fundraising, check with your Staff Liaison

and District Leader to ensure compliance with Policy P-2.7,

“Solicitation of Funds,” and that you‟re not interfering with something

being done by ASME or the ASME Foundation

Examples of Fundraising Events

• Dinners, auctions, “bake sales” or any other type of event conducted

for the sole or primary purpose of raising funds for your Unit‟s

activities

• Conferences and other activities that directly further the engineering

mission are not considered fundraising activities

How Do We Raise Money?

Ask for it! Individuals: • Face-to-Face Asks

• Direct mail, letter campaigns

• On-line campaigns

• Telethons

• Special Events

• Products sales

Foundations: • Submit letter of inquiry & proposal

• ASME sources

• Outside Foundations

Corporations: • Sponsorships

• Corporate Foundation/Marketing

• Matching gifts

• Campaign gifts

Your Unit should also budget to generate a surplus from

activities that are directly related to furthering the

engineering mission

INCOME -

MERIT-BASED FUNDING

• Current method of providing funding to Sections and Affinity Groups from ASME‟s Operating Budget; based on Units‟ achievements

• To be discussed in detail in the third part of this session

EXAMPLE OF A SECTION SUCCESS

STORY:

Interactive Discussion on the Dayton

Engineering

Sciences Symposium

http://www.asmedayton.org/DESS

Mandy Cowgill BrogdonM1@asme.org

PREMISE

• Annual symposium

• Local engineers present research

• Commercial

• Military

• Academic

• Commercial sponsors

• Held at local university

• Continental breakfast, lunch with speaker

COST FOR ATTENDEES • Undergrad students (presenting) $0

• Grad students (presenting) $0

• All other students attending $25

• Keynote/luncheon only $30

• ASME members $75

• Non-ASME members $100

GROWTH OF EVENT

• 2012 was 8th annual event

• 2005

o 6 ½ hr event

o 11 sessions

• 2012

o 8 hr event

o 21 sessions and poster session

LONG TERM BENEFIT

• Extra funds to support

o Student sections

o K-12 STEM programs

• Promotion of

o Local section

o Local companies

o Host university

DISCUSSION

• Do you have any questions?

• How many would consider replicating this program in your own Section?

• Further info:

• Mandy Cowgill BrogdonM1@asme.org

• http://www.asmedayton.org/DESS

EVENTS • Levels of ASME Involvement:

– ASME Sponsorship: ASME has total financial responsibility

– ASME Co-sponsorship: Joint financial responsibility with another organization

– ASME Participation: No ASME financial responsibility nor use of the logo

– Policy 12.1; updated

– All Events with an expected gross revenue greater than or equal to $50,000 must follow the procedures established by P-12.1 and be approved by the ASME Events Committee

SECTION & AFFINITY GROUP

• Monies from General Fund are

disbursed by appropriations in

accordance with Society Policy P-2.8.

• Monies may be solicited for special

activities in accordance with Society

Policy P-5.3. (Policy 2.1, Section

IV.A.1)

OPERATING FUNDS

• Sections external operating bank accounts are being transitioned to a new Consolidated Banking system

- Refer to the next section on Consolidated Banking for details

- Distinct from Custodial Funds, which are maintained by the Treasurer of the Society

ASME FINANCIAL REPORTS

MANAGER

• The Financial Reports Manager is a tool

which allows Unit Leaders to view reports

of their Custodian Accounts online

• Requires special authorization; usually

given to Unit Chairs and Treasurers

ACCESSING THE ASME

FINANCIAL REPORTS MANAGER

• The Financial Reports Manager can be

accessed from the Unit Leadership

Resource Center

http://volunteer.asme.org/Unit/

• Or, can be accessed directly at

http://my.asme.org/financials/GLReports.cfm

The “Premier Track – Resource

Management – Financial Reports

Manager” presentation will be posted on

the 2013 LTC Web Site, at

http://events.asme.org/LTC13/home.cfm

Scott Carlson, P.E. carlsons3@asme.org

QUESTIONS / DISCUSSION • Feedback on needs for ASME

support for Sections & Affinity

Groups in financial operations

Goal by the BOG: • The Board of Governors has set

a long term (2025?) goal to

move ASME from a $100 MM to

a $500 MM organization

Part 2: ASME

Consolidated Banking

A bank consolidation effort is underway where all external bank assets maintained by ASME Affiliates (Districts, Sections/Groups, Technical Chapters) will be transferred to a consolidated banking platform under JP Morgan Chase for the purposes of:

• Complying with various tax and financial reporting requirements

• Consolidating the number of banking relationships at ASME‟s Affiliates, leading to improved transparency, greater efficiency, and economies of scale.

• Insuring access to the best banking management products available to not-for-profit companies to satisfy ASME‟s needs.

Background

All Senior Sections Did Not Submit

Anything

Submitted Bank

and Financial

Statements

Submitted

Financial

Statements Only

Submitted Bank

Statements Only

Only 29% of sections were in full

compliance in FY ‘11

• ASME needs greater compliance from all Sections related to financial reporting

Background (continued)

Benefits • ASME has the potential to achieve many qualitative and quantitative advantages

by transitioning to a consolidated banking and reporting solution. Many organizations similar to ASME operate under a centralized banking structure for their Section or chapter organization structure. By way of summary, potential advantages include, but are not limited to the following:

• Improved tax and financial reporting

• Eliminate hundreds of EINs

• Consistency with 990 tax and various other regulatory filings/audits

• Reduction of financial, operational, and compliance risk

• Reduction in the burden on Affiliates for banking and financial reporting (no longer annual reporting)

• Improved transaction reporting and historical data retention

• Eliminated risk of abandoned bank accounts

• Consistent investment strategy as a result of consolidated investment funds

• Shorten the timeframe to process Merit Based Funding

• Improved banking services available to Affiliates and greater economies of scale, including reduced banking service fees.

The following are the anticipated transactions that Section officers will process with Chase Bank:

• Expenditures

• Manual Checks

• Online ACH payments

• Wire payments

• Revenue

• Check Deposit

• at Chase branches

• via smartphones

• mail to ASME

• ACH receipts

• Wire receipts

Transactions

• In conjunction with the banking consolidation effort, an Affiliate Revenue and Expense Register system has been built to provide the basis for coding banking transactions for integration into ASME‟s core accounting system. The proposed flow of data is in the diagram below.

Officers will code transactions using pull-down menus

Transaction Flow

Part 3: ASME

Merit Based Funding Program

• Program Objectives

• Program Basic Facts

• Quick Review of the Section & Affinity Group Merit Funding Programs

• Practical Exercise

• Review Typical MBF Timeline

• Important Filing Requirements

• Benefit of Experience

• Contact Information

• Your Questions

Discussion Topics – Part 3

• A system that recognizes achievement in meeting the Society‟s objectives and adding membership value

• Ensure that all Units, regardless of membership size, demographics or geography have an opportunity to secure funding for future activities

• Develop criteria that are not prescriptive, but that set a roadmap and incentives for enhanced section or group performance

Program Objectives

• Covers program year starting July 1 to June 30 • Mandatory Prerequisites:

– In order to qualify for funding, each Section must have: • Moved onto the ASME consolidated banking platform • Coded banking transactions in the Register in a timely manner • Submitted the required Annual Operations Budget • Submitted the Merit Funding form between July 1st and no later

than October 1st • Maintained a current list of Section officers on file with ASME • Provided “Unit After Activity Reports,” which are components of

the evaluation criteria

Section Merit Funding

Reporting Criteria with varying weights (unchanged vs 2012):

– Section Communications – Section Activities for Members – Provide Opportunities for Members‟ Professional

Growth – Aid in the Development of the Engineering Workforce – Section Operations – Section Growth and Sustainability – Partner with Engineering Organizations

(Districts G – J)

Grade x Weight = Score , Add Scores From all Criteria = Total Score

Note: Not all section activities can be captured by a single form. If a section has done an activity or program above and beyond normal programming they can include that for special consideration.

Section Merit Funding - Overview

Section Merit Funding Continued

Beginning in FY „12, Section Merit Based Funding must Now be submitted via online survey.

– Now prompts you for your answers for each sub-part of each item

– All the math is now done online – „12 was a learning year; lessons learned will be

incorporated for the „13 survey

Item 1 Section Communications – Maintain a website with current officer contact

information. (definitions on page 3 of form) – Maintain regular communications with members:

newsletters/meeting notices via website, direct mail, email, text message, social networking or other as appropriate to the section. (def‟ns pg 3 of form)

– Set up and maintain a new social networking site/page for section members (Facebook, LinkedIn, etc.)

– Utilize ASME list-server for communication with members – newsletters/meeting notices, direct mail, and email.

Item 2 Section Activities for Members – General membership activities held, such as technical

meetings, socials, tours, webcasts, industry meetings, History & Heritage events, etc., with corresponding ASME Unit "After Activity Report” must be submitted within two weeks of the activity (Item 5 includes grade points for Executive Committee Meetings which are NOT eligible for this category.)

– Collaborate with other ASME Units / Sectors, technical and professional societies and other educational organizations by organizing joint events and activities (definitions on page 3 of form)

Item 3 Provide Opportinities for Members‟ Professional Growth

1 Point for EACH activity (Max 3 points): – Sponsor or conduct a short course or other professional

development activity (seminar, workshop, etc.) Earn one point for EACH 2 PDH “eligible event” offered – You can accumulate more than one point per activity, or can add two 1 PDH activities together to equal 2 PDHs. (Note: No more than 1 point can be earned from technical dinner meetings. See definitions, Page 3 of form.)

1 Point (Max 1 point): – Send a delegate to the Leadership Training Conference

Item 3 Provide Opportunities for Members‟ Professional Growth Continued

1 Point (Max 1 point): – One Member submitted by the Section for ASME

District or higher Honor or Award – Bestow local Section Honor, Award or Scholarship on

one Section/Student Section Member (see definition, Page 3 of form)

Item 4 Aid in the Development of the Engineering Workforce

Candidate Workforce Development Activities: – Conduct a dedicated activity for students and/or early

career engineers (networking event, student paper presentations, career night, early career forum, industry tour, etc.)

– Conduct a short course at a level appropriate for students or early career engineers

– Engineering related presentations to or interaction with K-12 schools, universities, or student sections

– Participation in engineering job shadowing / mentoring program, or Engineering Fairs / Symposium

Item 4 Aid in the Development of the Engineering Workforce Continued

– Sponsor an engineering workforce or university activity

(E-Week, FIRST, Human Powered Vehicle Challenge, Student Professional Development Conference, etc.) that promotes math, science and engineering education. Engaged participation or volunteering is expected in addition to any financial sponsorship.

Item 5 Section Operations

– Executive committee meetings held at least quarterly – Conduct an annual program planning meeting – Section has a representative participate in a Global

Communities or District or Society related webcast – Section submits an article or a best practice to

bestpractices@asme.org – Maintain current Executive Committee officer

identification on the ASME master roster. – Maintain Section operations by-laws document and

have current copy on record with ASME headquarters. – Maintain a section history (Current with the last three

years).

Item 6 Section Growth and Sustainability [5 Points, Max]

– Co-develop and/or organize an event with a Student Section

– Hold membership recruiting or retention campaign or event

– Personally contact and invite new members to attend section event or activity (as per new member list and guidance from ASME headquarters)

– Include an early career engineer (less than 10 years professional experience) on the Executive Committee

Item 6 Section Growth and Sustainability Continued

– Conduct one communication on how to make the most

of your membership such as a presentation at a Section or Student Section meeting, or a newsletter article.

– Hold an early career event, resulting in at least 50% participation by early career engineers (less than 10 years professional experience).

Item 7 Extent of Partnership with Local / National Engineering Organizations (NEO)

– Unique to Districts G – J (Non-N. American Dists) – Hold coordination meetings with NEOs or other ASME

Sections – Assist in negotiations for joint benefits with NEO – Representative to committees of local / national bodies – Hold joint technical talks / seminars with NEO / other

ASME Sections – Etc. (See MBF handout / form)

• Four grading levels (Excellent; Good; Fair; and Funding Withheld)

• Funding formula – 100% for Excellent; 75% for Good; 50% for Fair; and Zero for „Funding Withheld‟.

• Funding formula takes into account unit size, 100% Amount = $x per member for first 250 members, plus $y per member for each member over 250 members. For FY „13 formula x=$10.00 and y=$5.14. (Updated vs FY „12)

• Current funding (FY13) is $400K; (FY12) was $400K; FY11 was $375K; FY10 was $367K; FY09 was $390K; FY08 was $350K; FY07 was $230K).

• Should have been completely distributed by LTC.

Note: The goal is for all sections to achieve “Excellent” status

Program Details: Unchanged for „13

• Similar requirements to Section Merit Funding program. Deadline for submittal is October 1.

• A new AG Merit Funding Form has been developed for FY „13; see the handout.

• Requirements are similar to previous years; changes will be highlighted in red.

• Mandatory Prerequisites:

– In order to qualify for funding, each AG must have submitted the required Annual Operations Budget and Merit Funding Form

– A current list of AG officers must be on file with ASME

– Unit After Activity Reports are also required

Affinity Group Merit Funding

• Reporting Criteria – Now Multiplying Scores by Weighting Factors:

– 1: Communications - 9 points max (was 8); Weight 3

– 2: Operations (was Governance) - 5 points max (was 2); Weight 2

– 3: Activities - 9 points max (was 4); Weight 3

– 4: Strategic Initiatives (New) – 6 points max; Weight 3

– 5: Growth - 6 points max (was 3); Weight 4 Now includes Virtual Community Growth

– 6: Fundraising - 2 points max; Weight 2

• Scoring - Updated

– % Score ≤ 100% - Qualifies for that percentage of funding.

– > 100% Funded at 100%.

– Max score is 110%

Affinity Group Merit Funding Continued

• Funding

– Up to $500/year is available to each AG to fund group activities

• Level of Funding Request (Essay)

– How will the Group will utilize the funding (up to 300 words)

– ALL Groups also asked to describe any non-monetary resources requested (previously only those with < 50%)

• Other Significant Activities Not Otherwise Covered (Essay)

– This is an entirely new section

– Provide the Affinity Communities Operating Board justification to grant bonus funding

Affinity Group Merit Funding Continued

Practical Exercise

(Exercise based on section operations.

It provides insight to Affinity Groups as well.)

• June – Consider MBF as Unit plans next year‟s program

• July 1 through Oct.1 – Units prepare all necessary

reports (Budget, Unit After Activity report) and file by

• July 1 through Oct. 1 – Units file Merit Funding Report –

You will be notified that your report is received.

• Oct. 1 through Oct. 16 – ASME Unit Support to process

and verify reports

Typical MBF Timeline

• Oct. 1 through Oct. 16 – Leaders and ASME Unit Support staff to contact all units that did not submit reports

• Oct. 17 through Oct. 23 – Unit Support staff (using Merit Funding Formula) to determine funding levels

• Oct. 24 through Nov. 6 – Unit Support staff to complete payment authorizations and submit to ASME Accounting for payment

• Nov. 7 through Nov. 17 – Payment processing and distribution

• Consider calculating your Unit‟s TENTATIVE MBF score at beginning of year – and tracking throughout – as your actual program evolves

Typical MBF Timeline Continued

File your unit‟s reporting forms:

• Unit Budget (no later than Oct 1) • After Activity Reports (no later than Oct 1) • Merit Funding forms (no later than Oct 1)

All can be accessed on the Unit Leadership Resource Center http://volunteer.asme.org/unit/

Notify ASME of your section/group officers (no later than Oct 1):

Section chairs have the option of directly entering officers online using the access to the online roster. If you have any questions on how to do this contact Jessica Albert at AlbertJ@asme.org.

You can also submit a hardcopy of your officer listing. The forms are available on the Unit Leadership Resource Center under “Section Officers & Committees Information Form”

Important Filing Requirements

OPERATIONS BUDGET

REPORT

•Plan Development

–Revenue Estimate

–Expenditure Estimate

•Plan Approval

•Plan Submittal

DUE by:

October 1st!

OPERATIONS

BUDGET

FORM available from:

http://volunteer.asme.org/unit/

Section Form shown, Affinity

Group Form is Similar

DUE within 2 weeks of event

ALL reports due by:

October 1st for preceding fiscal

UNIT ACTIVITY

REPORTS

FORM available at:

http://forms.asme.org/unitactivity/CreateMeeting.cfm

Filled out and filed online

You‟re welcome to contact us

AndersonL@asme.org – or – BrogdonM1@asme.org

- Or -

Your Staff Liaison or District Leader

- Or -

ASME Staff

Elio A. Manes

Director – Communities & Services

ManesE@asme.org

- Or -

Jared Oehring, VP Financial Operations

OehringJ2@asme.org

For More Information or to Comment:

Contact Information District Leaders

District A

Michael S. Roy, PE

RoyM2@asme.org

District B

Nael Barakat, Ph.D. P.Eng.

barakatn@gvsu.edu

District C

Thomas E. Wendt, PE

twendt6@wi.rr.com

District D

Judith Ann Bamberger

BambergerJ@asme.org

District E

Elliott Short

ShortB1@asme.org

District F

Mary K. Bailey

MaryBailey@asme.org

District G

Desmond Yok Rue Chong

yrchong@starhub.net.sg

District H

Memis Acar

AcarM@asme.org

District I

Mario M. Copa, PE

CopaM1@asme.org

District J

Hadi H. Tahboub

hadi.tahboub@gmail.com

Contact Information Affinity Communities

Operating Board

VP, Affinity Communities (FY13)

KC Dugal de la Garza

DugalC2@asme.org

VP-Elect, Affinity Communities

Eduardo Barrientos

BarrientosE2@asme.org

Finance Committee Representative

Joseph Radisek

RadisekJ2@asme.org

Questions

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