Treasurer's Report

At the November 10th Board of Governor's meeting, Treasurer Merrill Palmer reviewed the year 2001 Society Financial Results and previewed the working 2002 budget.


CPMT ended with a surplus of $144K compared to the original $89K budgeted surplus. This could still be revised with some late billings. For example, the Packaging Fellowship had not yet been expended. For the year the Transactions netted $344K which is about 19% below projections. In particular, the Advanced Packaging Transactions is short of page count this year.


The conferences had a net gain of $45K which is about 40% below expectations, but several of the conferences have not yet had final close out. In general we came out ahead despite the lower income because all volunteers became frugal under the specter of IEEE Headquarters deficit spending. In particular, committee chairs held back on spending and the BOG delayed hiring an IEEE administrative assistant saving $37K for the year.


Merrill summarized his guidance with 3 pithy statements:
1. The grim IEEE fiscal situation favors underspending.
2. The yearly budget is our operating plan so try to stick to it.
3. Underspending usually means underperforming.

The Society budget for 2002 is now $1.44M. As mandated by IEEE headquarters this budget includes a surplus of $177K for their needs. This budget includes a part time administrator at IEEE for document central execution (this approach is already speeding up many member papers headed for the Transactions). In addition, this budget funds the multipath Marketing initiative that Connie Swager is leading ($73K), the Education activities including curriculum development grant ($33K), and the new Award that CPMT is championing ($13K). By the rules of IEEE budget, there is no inclusion of Society $3M investment interest, earnings, or losses (hard to predict!). One big unknown is how much CPMT budget need be redirected to IEEE headquarters in 2002.
This new year could have more budget problems than usual since there is a world wide economic downturn. Many engineers feel more restricted in conference participation and professional society dues payment which could lead to revenue decline. However, to date the CPMT conferences have maintained healthy attendance and our membership continues to slowly increase. However, the Board discussed several options that would allow member participation at lower cost including: booking meetings at cheaper hotels, making keynote talks available over the network, supporting travel for key volunteers and students. The last big uncertainty is how much IEEE Infrastructure deficits will bite out of CPMT reserves. In 2000 IEEE took $383K from CPMT reserves, this year it looks like $750K. There are many prudent steps being taken at all levels but the bite could still be as large as $500K in the year 2002.
Activity is starting on the year 2003 budget. All proposals must be submitted so they can be discussed at the February Board meeting. The first pass budget is due to IEEE in early May. Remember our budget is our strategy, it must be thought out carefully. As members of IEEE we should also make our views known on the IEEE Deficit, not so much how to handle it but rather how manage so there is no Deficit.
-- taken from the notes of Merrill Palmer, Treasurer