MGA Financial Reporting Policy Changes 2011

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MGA Financial Reporting Policy Changes 2011

Sat BasuRegion 4 Finance Analyst

Region 4 Meeting2011 Section Congress

Thursday, August 18, 2011

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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

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Charges Assigned to Ad-Hoc-Com.• Review the Region L 50 Financial Reports

• Relationship of L50 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

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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

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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]

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Financial Data Analysis•Analyze L50 [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

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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

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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]

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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 L50 Financial Reporting

• Future Plans Include Enterprise Solutions

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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

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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

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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

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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.

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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



for the attendance of conference throughout the year.

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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



for the attendance of conference throughout the year.

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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.

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Proposed Account Items [Continued]• LEADERSHIP PROGRAMS: SUB ACCT FOR RELATED TRAVEL



for the attendance of leadership programs.

• PROGRAM DELIVERY: EDUCATION, PROFESSIONALS, STUDENTS


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.

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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

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Proposed Account Items [Continued]• EDUCATION, PROFESSIONALS, STUDENTS: SUB ACCT FOR RELATED

TRAVEL



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.

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Proposed Account Items [Continued]• MGA BOARD MEETINGS AND SECTIONS CONGRESS: SUB ACCOUNT

FOR RELATED TRAVEL



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

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Proposed Account Items [Continued]• TECHNICAL ACTIVITIES SUPPORT


activities related to but not limited to advancement of the 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



for the attendance of technical activities.

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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.

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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,


incurred that do not fit any category listed above.

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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,


incurred that do not fit any category listed above.

MGA Financial Reporting Policy Changes 2011

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