4 Financial Definitions ACM 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 benefitDirector, 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 TaxesExempt: 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.
5 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 30FY 12 (Fiscal Year 2012): July 1, 2011 – June 30, 2012.Conference Fiscal Year – March 1 – February 28FY 12 (Fiscal Year 2012): March 1, 2011 – February 29, 2012.
6 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).
7 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).
8 Financial Definitions con’t Overhead/AllocationThis 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.
9 Financial Definitions con’t Required Fund BalanceACM Policy - All subunits must maintain adequate reserves against unexpected occurrences.Formula50% of organizational expenses + 40% of conference expenses. The Required Fund Balance is established for each SIG as part of the annual budgeting process.
16 Revenue Account Descriptions SIG Dues619Voting, Associate, Affiliate & Student DuesNon-Member Subs623Subscription to SIG Newsletters (Non-Members)SIG Proceedings Pkg624Proceedings Sold to MembersDigital Library628Distribution from DL NetProceedings Sales632Single Copy Sales of ProceedingsVideo Sales637Sales of Material on DVDsOther S/C Sales639All Other S/C Sales e.g. Tutorial NotesConference Revenue651Income from All Conferences
17 Revenue Account Descriptions Interest Income692Income from Fund Balance InvestmentsExpedited Service695Air Service ChargesContributions696Support from Other OrganizationsOther Misc. Revenue698Other Income not classified Above
18 Expense Account Descriptions Travel812Volunteer Airline Tickets, Lodging, Meals, TaxisCommunications833Telephone, FaxMailing and Handling834Postage, FedEx excl. Member BenefitsStationery & Supplies835Letterheads, Envelopes etc.Minor Printing836Minor Printing excl. Member Benefits, ElectionsCopying/Duplicating837CopyingProduction841Productions Costs of Member BenefitsDistribution842Distribution and Handling Costs for Member Benefits
19 Expense Account Descriptions Other Pubs. Services847Editorial and Designs Pubs CostsWeb Design850All aspects of Web Design/SupportProfessional Service869Contractors/Service ProvidersLocal SIG Support871Support Given to Local SigsGrants872Travel Grants ProgramAwardsLifetime, Service, SpecialScholarships874Student Initiatives (Restrictions)
20 Expense Account Descriptions Special Projects875Non-Normal Operating CostsMeetings/Functions882Meeting Room Rental, Audio VisualOther Misc. Expenses889Expenses not classified aboveConference Expenses891Overhead900Overhead CostsSGB Support903SGB Overhead Operational CostsConference Transfer904Conference Transfer of AllocationTransfers905SIG Project Fund & Endowments
21 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, 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, 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, Completion date for preliminary preparation of draft budgets.On or about March 12, Review with SIG officers, obtain approvals, work toward completion;On or about April 2, Inclusion in ACM budget draft to be presented to ACM EC and Council.