SGB Orientation Finance Workshop Presented By: Darren Ramdin Associate Director Office of Financial Services 2 Penn Plaza, Suite 701 New York, NY 10121-0701 212-626-0584 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 Craig Jacobson Manager Financial Reporting, NSF Grants, Taxes, Accounts Payable, Financial Analysis Lily Liao Senior Staff Accountant Accounts Payable, Wire Transfers, Financial Analysis Russell Harris Director Overall financial management of the organization Liz Zhang Senior Accountant Financial Statements, Tax Returns, Banking, Financial Analysis Siwei Liu Staff Accountant Travel Reimbursements, Accounts Receivable, Credit Card Processing, Financial Analysis Stephen Sisler Senior Staff Accountant Investments Recording, Accounts Receivable, Insurance, Financial Analysis Howard Glassman Accountant (Part-time) Accounts Payable Connie Tam Accountant (Part-time) Accounts Payable and Accounts Receivable

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 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 Year A 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 Accounting The 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 Revenue Income to be earned in future reporting periods. Accrued Expenses Expenses recorded when incurred (not when paid).

Financial Definitions con’t Surplus The net result when revenue exceeds expenses. Deficit The net result when expenses exceed revenue. Fund Balances or Reserves The accumulation of surpluses and deficits. FMR Financial Management Report – Financial Statement or Financial Performance Analytical Tool. CIP Conference In Process Report. Financial Management Report for Conferences. TMRF Technical 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 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 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 Schedule The 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.

Helpful Links 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 Guidelines http://www.acm.org/sig_volunteer_info/travel.html Conference Manual http://www.acm.org/sig_volunteer_info/conference_manual/ SGB Minutes http://www.acm.org/sigs/sgb/minutes/minutes-toc