SGB Orientation

Finance Workshop

Presented By: Darren RamdinAssociate Director

Office of Financial Services2 Penn Plaza, Suite 701

New York, NY 10121-0701212-626-0584

212-997-1180 (fax)Darren.Ramdin@hq.acm.org

Overview

Finance Staff

Financial Definitions

Financial Management Report

Revenue and Expense Account Descriptions

Budget Schedule

Helpful Links

Financial Services Staff

Russell HarrisDirector

Overall financial management of the

organization

Liz ZhangSenior Accountant

Financial Statements, Tax Returns, Banking, Financial

Analysis

Craig JacobsonManager

Financial Reporting, NSF Grants, Taxes, Accounts Payable, Financial Analysis

Lily LiaoSenior Staff Accountant

Accounts Payable, Wire Transfers,

Financial Analysis

Siwei LiuStaff Accountant

Travel Reimbursements, Accounts Receivable, Credit Card Processing, Financial

Analysis

Stephen SislerSenior Staff Accountant

Investments Recording, Accounts Receivable,

Insurance, Financial Analysis

Howard GlassmanAccountant (Part-time)

Accounts Payable

Connie TamAccountant (Part-time)

Accounts Payable and Accounts Receivable

Financial DefinitionsACM is a 501(c)(3) Organization

- Allows for Federal Tax Exemption- Regulated by U.S. Department of Treasury- Organized, operated for scientific and educational purposes.- No part of the activities or the net earnings can unfairly benefit Director, officer, or any private individual.- Volunteers cannot be paid.- Subject to UBIT (Unrelated Business Income Tax).- Required to comply with U.S. Economic Sanctions.- Sales Taxes Exempt: New York, Florida,, Massachusetts. Colorado, Texas, among others. Not Exempt: California, Washington, Illinois, Nevada, among others.- VAT (Valued Added Taxes) Not Exempt. Event by Event Analysis. Preferred Professional Vendors available to assist.

Financial Definitions

Fiscal YearA period of 12 consecutive months without regard to the calendar year. The fiscal year is designated by the calendar year in which it ends.

Official Fiscal Year – July 1 – June 30

FY 12 (Fiscal Year 2012): July 1, 2011 – June 30, 2012.

Conference Fiscal Year – March 1 – February 28

FY 12 (Fiscal Year 2012): March 1, 2011 – February 29, 2012.

Financial Definitions

Accrual AccountingThe recording of economic events regardless of when the cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).

Deferred RevenueIncome to be earned in future reporting periods.

Accrued ExpensesExpenses recorded when incurred (not when paid).

Financial Definitions con’t

SurplusThe net result when revenue exceeds expenses.

DeficitThe net result when expenses exceed revenue.

Fund Balances or ReservesThe accumulation of surpluses and deficits.

FMRFinancial Management Report – Financial Statement or Financial Performance Analytical Tool.

CIPConference In Process Report. Financial Management Report for Conferences.

TMRFTechnical Meeting Request Form (Conference Budgets).

Financial Definitions con’t

Overhead/Allocation This fee is part of doing business at ACM. It is not a fee for service. It is currently calculated based on the total expenses of each SIG, both general operations and conferences.To cover overhead, SIG leaders (through action of the SGB) have chosen to implement a formula based on a sliding scale, starting at 16% and decreasing by 0.8% for every $125K of expenses. Thus different SIGs and their conferences vary in the percentage used for overhead. The activities covered under overhead include general office support for SIGs and their conferences, accounting and finance support, and assistance with publications, membership, marketing, webpage/wikis, etc.For background and detail of recent discussions of the topics of overhead and allocation, please see minutes of the SGB - October 14, 2000, August 19,2001, February 23, 2002, March 16, 2003 and September 20, 2003.

Financial Definitions con’t

Required Fund Balance

ACM Policy - All subunits must maintain adequate reserves against unexpected occurrences.

Formula

50% of organizational expenses + 40% of conference expenses. The Required Fund Balance is established for each SIG as part of the annual budgeting process.

Financial Management Reports

FMRs

Revenue Account Descriptions

SIG Dues 619 Voting, Associate, Affiliate & Student Dues

Non-Member Subs 623 Subscription to SIG Newsletters (Non-Members)

SIG Proceedings Pkg 624 Proceedings Sold to Members

Digital Library 628 Distribution from DL Net

Proceedings Sales 632 Single Copy Sales of Proceedings

Video Sales 637 Sales of Material on DVDs

Other S/C Sales 639 All Other S/C Sales e.g. Tutorial Notes

Conference Revenue 651 Income from All Conferences

Revenue Account Descriptions

Interest Income 692 Income from Fund Balance Investments

Expedited Service 695 Air Service Charges

Contributions 696 Support from Other Organizations

Other Misc. Revenue 698 Other Income not classified Above

Expense Account Descriptions

Travel 812 Volunteer Airline Tickets, Lodging, Meals, Taxis

Communications 833 Telephone, Fax

Mailing and Handling 834 Postage, FedEx excl. Member Benefits

Stationery & Supplies 835 Letterheads, Envelopes etc.

Minor Printing 836 Minor Printing excl. Member Benefits, Elections

Copying/Duplicating 837 Copying

Production 841 Productions Costs of Member Benefits

Distribution 842 Distribution and Handling Costs for Member Benefits

Expense Account Descriptions

Other Pubs. Services 847 Editorial and Designs Pubs Costs

Web Design 850 All aspects of Web Design/Support

Professional Service 869 Contractors/Service Providers

Local SIG Support 871 Support Given to Local Sigs

Grants 872 Travel Grants Program

Awards 872 Lifetime, Service, Special

Scholarships 874 Student Initiatives (Restrictions)

Expense Account Descriptions

Special Projects 875 Non-Normal Operating Costs

Meetings/Functions 882 Meeting Room Rental, Audio Visual

Other Misc. Expenses 889 Expenses not classified above

Conference Expenses 891 Conference Expenses

Overhead 900 Overhead Costs

SGB Support 903 SGB Overhead Operational Costs

Conference Transfer 904 Conference Transfer of Allocation

Transfers 905 SIG Project Fund & Endowments

FY ’13 Budget ScheduleThe FY 13 budget covers Conference activity from March 1, 2012 through February 28, 2013 and Organization activity from July 1, 2012 through June 30, 2013. The FY 13 Budget Schedule is as follows:

On or about November 15, 2011 – Submit FY ’13 Member Benefits to Office of SIG Services. On or about January 16, 2012 - ACM Finance commences inputting data on the FY 13 budget templates.  Data on special projects, awards, grants, travel are requested from SIG Officers. No Later than January 30, 2012 - FY 13 changes in member dues and subscriber rates must be submitted to ACM Finance for inclusion in the publications catalog; On or about February 13, 2012 - Completion date for preliminary preparation of draft budgets. On or about March 12, 2012 - Review with SIG officers, obtain approvals, work toward completion; On or about April 2, 2012 - Inclusion in ACM budget draft to be presented to ACM EC and Council.

Officers Manual:http://www.acm.org/sig_volunteer_info/officers_manual/

Financial Management Reports: fmr.acm.org

Policy and Procedures:http://www.acm.org/sig_volunteer_info/policy_procedures/

Travel Guidelineshttp://www.acm.org/sig_volunteer_info/travel.html

Conference Manualhttp://www.acm.org/sig_volunteer_info/conference_manual/

SGB Minuteshttp://www.acm.org/sigs/sgb/minutes/minutes-toc

Helpful Links