1. lmp0520 CPMT Treasurer’s Report 19-20 May 2000 1999 Financial Results CPMT Financial Reserves 2000 YTD Financial Results Year 2001 Budget Institute-level Deficit Potential Impact Long Term Investment Considerations

2. lmp0520 1999 Financial Results See separate spreadsheet of actuals vs. budget 1999 CPMT Surplus was $822.3K –Dues less processing charges$ 14.0K –Interest and investment earnings479.7K –Net from publications331.3K –Net from conferences/proceedings314.4K –Committees, etc. underspent173.7K

3. lmp0520 CPMT Financial Reserves CPMT Society Accumulated Financial Reserve 0 1000 2000 3000 4000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Year Year-end Reserve ($K) 1999 Year-end financial reserves: $3,019K

4. lmp0520 2000 CPMT Budget See separate spreadsheet $1.25M budget; $80.9K surplus Includes $160K for initiatives Does not reflect increased IEEE Infra- structure charges (New Financial Model)

5. lmp0520 CPMT 2000 Initiatives Archival CD-ROM of all past Transactions$65K Chapters Meeting$35K 50th Anniversary Commemoration Activities$22K Printing and Distribution of CPMT 50 year history$13K Membership Booth at International Conferences$10K Student/GOLD Program$10K Industry contacts regarding membership support $ 5K $ 160K

6. lmp0520 2000 YTD Financial Results In general, within budget –Conferences are booked when closed; Only EPP closed Jan-Apr 00, with net surplus $4.7K –Publications revenue is on track; expenses future –Through April, member dues are 29% below YTD budget, >11% below 1999 YTD –YTD through April, pro rata Committees, etc. budget is $103.4K. Actuals were $14.7K Not in budget: Web Trans. papers tracking

7. lmp0520 CPMT 2001 Budget First Pass Budget email balloted; submitted –Keeps member dues and subscriptions unchanged –Increases non-member subscription rates slightly –Includes everything everyone requested –Includes $44K for web-based tracking of papers and $40K for Packaging Education Fellowship –Does not include interest earnings (~$100K+) –(Submitted) budget surplus of $16.4K vs. ballot approved budget deficit of Difference is primarily Transactions revenue

8. lmp0520 CPMT 2001 Budget (2) Concerns about the First Pass Budget: 1. 2001 budget is almost totally “business as usual”. There is essentially nothing newly strategic. Are we doing everything right, or haven’t we thought about it? 2. 2001 budget doesn’t consider $297.9K (and $183.4K in 2000) “Potential Reduction in Reserves” to cover “Infrastructure” budget deficit 3. Requested expenditures have not been scrubbed.

9. lmp0520 2001 Expenditure Proposals Questions: –Transactions papers tracking $44K –Packaging Education Fellowship +$40K –Chapter support $45K –Distinguished Lecturer Program $20K –Membership Committee $32.4K CPMT 2001 Budget (3)

10. lmp0520 Institute/Infrastructure Deficits Potential Impact Institute-level deficits are not resolved –Revenue distribution does not align with expenses –1999 New Financial Model was not approved, but TAB implemented $193K (of $499K) “sunset” savings IEEE implemented $1,072K savings (of $2,226K) Permanent BRIC; Volunteer oversight of operations Partial 1999 NFM implementation for 2001 budget New Institute-wide Blue Ribbon Committee on NFM

11. lmp0520 Institute/Infrastructure Deficits Potential Impact (2) Interest and investment earnings are being held back from Societies’ 2001 budgets Unless a NFM is developed and approved, the default situation will likely be: “Each Entity’s Reserves will be reduced by a proportional amount sufficient to fund the shortfall in Infrastructure Expenses” Based on 2000 budget, CPMT potential hit could be $183.4K in 2000, $297.9K in 2001

12. lmp0520 Long Term Investment IEEE recommends 30% of reserves in cash –Limits exposure to stock market volatility –Cash deficits cost money market rate + 2% CPMT 12/31/99: $471K/$3,019K < 16% –That’s $165K more cash than 12/31/98 –Cash flow is mostly positive during the year We moved $200K to Long Term in 1999 Lowest month-end cash balance was $140K We could move none, or up to $300K