Financial Activities Report

1. Financial Activities Report New Orleans, May 1, 2004Xiaoping Yun Treasurer Tony Maciejewski VP for Finance

2. Outline • Office Transition • Final Financial Results of 2003 • Net income for each publication and major conferences • IEEE Administration and AdCom expenses • Investment return and net asset • 2004 Financial Status • 2005 Budget

3. Transition • Dave Orin hosted a one-day meeting with Tony Maciejewski and Xiaoping Yun at OSU in January. • Attended IEEE Financial Workshop at IEEE HQ in March. • Ongoing consultation with Dave Orin.

4. “Custom Service” • Tony Maciejewski --- VP Finance • Budget • Initiatives/activities that have financial impact • Xiaoping Yun --- Treasurer • Expense reports • Purchase orders • Invoices • Advance loans

5. <- Member Fees $110.8K <- T-RO $501.6K <- Magazine $157.1K <- BBP $340.2K

6. T-RA Expenses $234.1K, Net: $267.5K --> Mag Expenses $189.8K, Net: $(32.7)K --> ICRA2003 $461.4K, Net: $80.7K --> IEEE Admin $301.6K --> AdCom $60.1K --> 2003 Operating Surplus $440.7K -->

7. <- Op+ $440.7K <- Inv $396.2K <-  $836.9K <- IEEE $986.2K <- Worth $2.267M

8. 2004 Financial Status • IEEE conducts forecast three times a year. • Stay within budget based on 1Q results. • Out of budget item: magazine page count increase.

9. 2003 IEEE Finances - Impact on 2005 Budget • IEEE • 2003 net surplus $28.6M (reserves at $105.8M) • $11M operations ($10M above budget) • $17.6 market fluctuation • Society/Council, TAB net surplus $26.4M (reserves at 90.7M) • 2005 Society/Council, TAB budget must be breakeven • excludes market fluctuation • excludes IEEE approved initiatives

10. 2005 Publication Rate Principles • Member rates - recover incremental costs • Student rates - 1/2 of regular member rates • Non-member rates - 2/3 of market value • Page counts based on quality/service

11. 2005 Magazine Rates • Keep membership rates same as 2004 • Regular - $21 • Student - $11 • Non-member rates at IEEE suggested rates • $285 (up from $270 in 2004) • Increase page count to 320 from 304 • Request to publish 100 extra pages in 2004 • timely publication of paper backlog

12. Effect of Extra Pages in 2004 for Magazine • Loss of some ASPP income • Publications within 5% of budget share in distribution of money taken from publications that are under page budget • Pool being distributed is decreasing • $800K (2001), $500K (2002), $273K (2003) • Magazine portion was 0.56% in 2003, i.e., $1.53K • Move forward cost of publication - $23K • Magazine cost per page - $150 composition, $80 print

13. 2005 Trans. Robotics Rates • Keep membership rates same as 2004 • Print - $19 ($10) – incremental cost $17.8 in 2003 • Electronic - $15 ($8) • Combo - $21 ($11) • Non-member rates at IEEE suggested rates • $590 (up from $545 in 2004) • Increase page count 5% to 1076 from 1024 • already a 5% backlog for 2004

14. 2005 Trans. Automation Science & Engineering Rates • Increase membership rates in line with increase in content • Print - $15 ($8) • Electronic - $10 ($5) • Combo - $17 ($9) • TASE with TRO – 25% discount on combination • Print - $25 ($13) • Electronic - $18 ($9) • Combo - $29 ($15) • Non-member rates at IEEE suggested rates • $370 (up from $175 in 2004) • Increase page count to 424 from 180 • Increase number of issues to 4 from 2

15. Motions on 2005 Budget • Approval of extra pages for Magazine in 2004 • Approval of 2005 rates for all publications • Approval of $20K in start-up costs associated with Manuscript Central for TRO in 2005

16. Proposal from Long Range Planning Committee and Technical Activities Board Young Professional's Lunch at ICRA 2005 $5,000 • Presentation of services and opportunities offered by RAS (TCs, awards, committees, conferences, education, …) • Platform for discussion and brainstorming on ‘what can the society do for you’ Expected benefit to Society • Establish a strong contact with our young members, recruit new members • Expand and strengthen the involvement of our young colleagues in RAS • Get a clear idea of the needs and wishes of our young colleagues

17. Proposal from Conference Activities Board Motion: Move that the Robotics and Automation Society adopt the following procedure concerning reduction of ICRA registration fees: • ICRA surplus funds over 15% of gross income will be used to reduce the following year’s member registration fee up to a $100 reduction below the budgeted level: Fee Reduction = (surplus – 15% of gross income) / 1000 • A mechanism will be developed, which is compatible with IEEE policies on conference closings, to pay for the next year’s registration fee reduction out of the current year’s surplus funds.

18. Proposal from Conference Activities Board Background: • Organization and budgeting of future ICRA conferences can move forward in the same manner as is currently in practice. • Relief on ICRA conference registration fees is directly related to the financial success of the conference. • A base level of surplus funds will still support the current activities of the Society (Distinguished Lecturer Program, awards, etc.). • This provides a direct mechanism to reduce conference fees, which is an expressed desire of members surveyed.

19. Business Plan