Conferences Organization Manual – Section 9

9.0 THE FINANCE COMMITTEE

9.1 RESPONSIBILITIES OF THE FINANCE COMMITTEE
The Finance Committee is responsible for the following:

• Bank Accounts
• Insurance and Bonding
• Budget
• Cash Flow
• Income
• Expenses
• Auditing
• Records
• Cash Handling
• Financial Reports
• Conference Closing
• Final Report
• 1099 Request Form

A position description of the Finance Chair (or Conference Treasurer) .

9.1.1 Opening a Conference Bank Account
It is the responsibility of the Finance Chair to establish the conference bank account for receipt and disbursement of conference funds. IEEE's Concentration Banking program is strongly recommended for all conferences where an IEEE Organizational Unit has a financial responsibility. If there is a need for a local bank account it is to be established in the full name of the IEEE and the conference. (e.g., "The Institute of Electrical & Electronics Engineers, Inc, d/b/a 2001 IEEE Conference on Plasma Sciences"). This account shall be in the name of IEEE and the conference and not in the name of an individual. For US bank accounts, the required IEEE IRS Identification Number for the bank account is given in paragraph 9.1.1.2. Conference loans from the sponsors are usually the first deposit.

Note: IEEE offers short-term and long-term investment options for conferences. The goal is to provide professionally managed vehicles for IEEE units to pool their finances with the IEEE General Fund, in order to ensure that the organization's total funds are managed in an economic and efficient manner. For more information, call the IEEE Financial Services Department for an IEEE Investment Options Prospectus.

If the conference has an interest-bearing account the Finance Chair must report to the IEEE the principal, accrued annual interest, account number and the bank name and address at the end of the year in which the interest accrues.

Note: Under no circumstances should you have your bank information posted anywhere on the conference website. If you accept wire transfers have the attendee contact a committee member for instructions.

9.1.1.1 Account Identification
IRS regulations require that all conference bank accounts in Regions 1-6 be opened as "The Institute of Electrical & Electronics Engineers, Inc, d/b/a Year IEEE Conference Title. Accounts must never be in an individual's name.

9.1.1.2 IRS Tax Identification Number For Regions 1-6
The Uniform Employer Identification Number that has been assigned by the IRS for use by all IEEE conferences sponsored by entities, other than Sections or Regions, holding funds outside the IEEE treasury is 13-1656633. Section or Region-sponsored conferences have been assigned a uniform identification number of 13-6117748. These numbers should be used whenever an IEEE financially-sponsored conference is called upon to furnish a taxpayer identification number.

The legal name of the IEEE is The Institute of Electrical and Electronics Engineers, Inc.

9.1.1.3 Signatory Powers for Bank Accounts
IEEE Policy and Procedures require that all conference bank accounts have alternate signatures designated. The minimum signatures for an account are:

(1) One volunteer from the Conference Committee, usually the Finance Chair (or Treasurer).
(2) One volunteer alternate from the Conference Committee, usually the Conference Chair.
(3) The IEEE Staff Director Financial Services or designee. Alternate signatory arrangements may be necessary for non-U.S. conferences.

9.1.1.4 IEEE Requirements
It is the responsibility of the Conference Treasurer to report to IEEE at the end of each calendar year, indicating the principal amount, annual accrued interest, account number and name and address of any financial institution at which any open conference account exists. The Institute requires this information for its IRS Information Return.

9.1.1.5 Closing of Bank Accounts
IRS regulations require that all IEEE conferences close their accounts and submit a Final Financial Report to the appropriate IEEE Organizational Unit(s) within six months from the close of the conference. IRS regulations stipulate that all surplus funds from the conference first be deposited in the sponsoring entity's IEEE Headquarters account before they can be withdrawn for use as advance funds for a future conference. If an IEEE Region is acting as a single sponsoring entity, all conference surplus funds must first be deposited in the established Region account before withdrawal for further use, i.e., distribution to Sections. It is the responsibility of the Conference Finance Chair to ensure that this procedure is strictly followed in order to protect IEEE's not-for-profit tax status. (Paragraph 9.5.8.).

9.1.1.6 Revolving Fund
Under certain conditions where a conference is one of a series, and non-IEEE organizations are financially involved, a revolving fund for a conference may be established with the approval of the sponsoring entity and the concurrence of the IEEE Controller's Office. It is preferred that co-sponsored conferences not get involved in such arrangements; however, they may be used with permission of the IEEE Controller's Office. Such revolving funds are still required to file annual financial reports reflecting the financial activity and statement of financial position. (Paragraph 9.1.4)

9.1.2 Conference Loan Request
It is the responsibility of the Finance Committee to determine if a conference loan (seed money) is required to pay initial conference expenses. If a conference loan is required, the Finance Committee should direct the sponsoring Organizational Unit's Treasurer to request IEEE Headquarters to forward the loan amount to the Conference Treasurer.

9.1.2.1 Conference Loan from Sponsoring Entity
It is only upon the official request from the sponsoring Organizational Unit responsible officers that IEEE may implement any transfer of entity funds to a particular conference as a conference loan.

9.1.3 IEEE Conference Budget Requirements
It is the responsibility of the Finance Committee to prepare a budget indicating estimated income and expenses for the conference. IEEE Policy requires that a conference budget be submitted at least 12 months in advance of the conference to the appropriate IEEE office, accompanied by written sponsor approval, and forwarded to IEEE Conference Services for Headquarters' approval. Budgets for ancillary conferences, Short Courses, Tutorials or Expositions held either directly following or preceding a conference can be included within the main conference budget. However, income and expenses from these activities should be clearly identified.

9.1.3.1 Sponsoring Entities Approval of Budget
Conference budgets must first be approved by the sponsoring entity prior to submission to IEEE. It is the responsibility of the Finance Committee to ensure that all financial sponsors or co-sponsors have approved the conference budget and that such approval is documented by an official letter of acceptance from the sponsors. IEEE cannot accept a conference budget unless it is accompanied by written approval of the sponsors.

9.1.3.2 Projected Budget Surplus or Deficit
IEEE Policy stipulates that all conference budgets that are submitted for IEEE approval must be based on non-deficit expectations. Conference budgets should be set to generate a minimum surplus of 20% over projected expenses. However, on exception, an entity may choose to budget on a deficit basis, provided the annual total of all conferences budgeted by that entity reflects a surplus. If a conference budget indicates a deficit, a letter of approval from the sponsoring Organizational Unit must accompany the budget when it is submitted to IEEE. A deficit conference budget will only be approved by IEEE if it can be properly justified in regard to the total fiscal situation of the sponsoring Organizational Unit.

9.1.3.3 Preparation of Budget
The initial conference budget should be prepared on the form "Summary Financial Report for IEEE Sponsored or Co-sponsored Conferences." Instructions for completion are outlined on the back of the form. Complimentary worksheets entitled "IEEE Conference Financial Report - Part I: Income", "IEEE Conference Financial Report Part II: Expense" and "Social Functions Breakdown" which allocate income and expense items in more detail, should also be prepared and submitted to IEEE Conference Services with the initial budget. (Forms in Section 16) Finance Chairs may use software available from IEEE Conference Services to generate these forms.

9.1.3.4 Budget Revisions
The Finance Committee is responsible for monitoring actual income and expenditures during the development and planning phases. If deemed necessary, the Finance Committee may submit a revised budget to IEEE for approval. If significant changes are made to the budget, e.g., decision to cancel an exhibition or conference proceeding publication, it is incumbent upon the Finance Committee to resubmit a conference budget to the sponsoring entity and to IEEE accompanied by written approval from the sponsoring Organizational Unit for IEEE approval. The same forms as used for the initial budget are used in preparing the revised budget. It is good practice to prepare and submit to the sponsoring entity at least one interim report approximately three months before the conference when the program is stable, printing and other costs are known, exhibits are contracted and early registration patterns are developing. It is worth doing because it gives an early reading on the outlook for the conference, and may reveal anomalies, in time to correct them.

9.1.4 Conference Registration Fee
The Finance Committee, with the concurrence of the Conference Committee and each sponsoring entity, establishes the conference registration fee. Conference budgets should be set to generate a minium surplus of 20% over projected expenses.  Other anticipated sources of revenue, such as exhibition sales and income from the sale of conference Proceedings/Digests, should also be taken into consideration when setting registration fees for the conference.

9.1.4.1 IEEE Member/Non-Member
IEEE Policy requires that registration fees for non-members at IEEE sponsored conferences be significantly more (25-50%) than registration fees for IEEE members. Members of the Founding Societies - American Society of Civil Engineers, the American Institute of Mining, Metallurgical and Petroleum Engineers, the American Society of Mechanical Engineers and the American Institute of Chemical Engineers - have a reciprocal agreement entitling their members to the member registration fee at IEEE conferences. IEEE members are entitled to member fees at Founding Society conferences.

9.1.4.1.1 Non-Member Fee Differential Towards IEEE Membership
The Finance Committee, with the approval of the Conference Committee and the sponsoring entity, may allow application of the fee differential paid by non-members at the conference to be applied toward IEEE membership enrollment. If it is decided to allow the fee differential to be applied toward IEEE membership, the IEEE Membership Services Department should be consulted in advance to arrange for smooth processing and to avoid misunderstandings between the new member and IEEE. If this activity is to be done at a meeting, then adequate conference publicity must be done to make it successful.

9.1.4.2 Students, Retired, Life Members
IEEE Policy & Procedures (10.1.15) permits reduced conference registration fees for students, unemployed IEEE members, retired and Life members and special VIP guests, at the discretion of the Conference Committee and sponsoring entity. Unless otherwise stipulated, the registration fee for retired and Life members should be no more than the registration fee for students. These reduced registration fees may exclude meal functions, Conference Proceedings and other side activities.

9.1.4.3 Advance Registration
If advance registration is established for the conference, it is the responsibility of the Finance Committee to develop and implement the necessary procedures to facilitate such advance registration, (i.e., receipt and deposit of funds, notification of registrants, etc.). The advance registration fee is generally set lower than the on-site registration fee in order to stimulate advance registration. The determination of the differential between advance registration and on-site registration fees is the responsibility of the Finance Committee, with the approval of the Conference Committee and the sponsor(s).

9.1.4.4 Refunds
The Finance Committee, with the concurrence of the Conference Committee establishes a specific policy with regard to refunds. Notice regarding the conditions for refunds with specific cut-off dates for the acceptance of refund requests should be included in the Advance Program and other related promotional material.

9.1.4.5 Suggested Guidelines - Finance Chair
A detailed procedure for the Finance Chair (or Conference Treasurer) is outlined.

9.2 INSURANCE AND BONDING
Conference insurance and bonding will vary from country to country, according to local laws and practice. If there will be multiple functions at a conference, separate insurance forms must be submitted for each. One insurance form is needed for each budget submitted. It is recommended that cancellation insurance also be purchased for all meetings over 1,000 attendees and/or having over 100 exhibit booths. This is necessary to minimize financial exposure to sponsors, if the meeting must be canceled at the last minute. (Forms in Section 16)

9.3 MISCELLANEOUS FINANCIAL ACTIVITIES

9.3.1 Petty Cash
The Treasurer for convenience in meeting small obligations may maintain a petty cash fund. Replenishment of the petty cash fund may be made, as necessary, by the Treasurer from depository funds. The person(s) responsible for petty cash funds must maintain an accurate record and keep receipts for all disbursements.

9.3.2 Cashier

9.3.2.1 General
During the conference, it is necessary that a Cashier be appointed to work with the Registration Subcommittee in handling income from registration fees and ticket sales.

9.3.2.2 Duties
The Cashier will check out cash boxes to appropriate members of the Registration Subcommittee; disperse petty cash on the authority of the Registration Chair; and, keep accurate records of the number of registrants, the number of ticket sales and other sources of income.

9.3.2.3 Security
Due to the large sums of cash generated by the registration process, deposits should be made at a local bank at the end of each day. Security escorts may be desired. Deposits must be planned and made at the end of the day. Arrangements with a local bank should be made in advance. If desired, cash may also be used to pay hotel bills.

9.3.2.4 Cash Boxes
It is important that each clerk handle money from his/her own cash box. The box will be checked out by the Cashier at the beginning of each day and returned by the Cashier, with an accounting, at the end of the day. Overnight cash will be locked in a secure location, as established by the Treasurer - preferably in a hotel safety deposit box. Excess cash should be deposited daily in a local bank or used to pay hotel bills.

9.3.3 Travel Expenses For Participants
Explicit policies must be established in advance regarding the payment of travel expenses for participants. These travel expense payments should be incorporated in the conference budget. IEEE Policy prohibits payments of honoraria for the presentation of a paper at a conference, except for a lecture or other educational activity for which a tuition fee is charged.

9.3.4 Exhibits
The Treasurer is responsible for the receipt and deposit of all funds from exhibitors. In accordance with the policies of the Conference Committee, and in keeping with the contract of the Exhibit Manager, the Treasurer will make only those payments agreed upon in advance.

9.3.5 Credit Cards
The use of credit cards for registration is very helpful, especially for registrants from outside the U.S. Credit card procedures and machines may be obtained by contacting IEEE Conference Services. All transactions should be verified in a timely fashion, and the credit card slips should be sent to IEEE without delay.

9.4 U.S. GOVERNMENT GRANTS
All grant proposals must be approved by the IEEE Development Office, signed by a conference representative serving as the Principal Investigator, and the authorized IEEE staff person. Mail the original grant proposal with the conference representatives signature to IEEE Development Office, 445 Hoes Lane, P.O. Box 1331, Piscataway, NJ 08855-1331, Attn: Development Operations Manager, retaining a copy for the conference records. The Development Operations Manager will review the grant proposal for compliance to the government agency's requirements, obtain the necessary IEEE authorizing signature, and submit the appropriate number of copies of the grant proposal with a cover letter to the government agency.

Approved grants will be assigned an IEEE project number to monitor the flow of transactions through IEEE's accounting system. A copy of the approved grant will be sent to the conference representative with a cover letter providing instructions for the grant administration. Grant administration includes the grant timeframe, recognizing the revenue, submitting expenses to IEEE against the grant, final technical report filing, and any other grant specific requirements as needed. Responsibility for the grant reporting breaks down as follows. The conference representative is responsible for submitting the expenses to the Development Operations Manager and submitting the final technical report to the government agency, copying the Development Operations Manager. The Development Operations Manager is responsible for processing the expenses associated with the grant, submitting the financial report to the government agency, and obtaining the funds.

All grant change requests, such as a no cost extension, must be processed through the Development Operations Manager for approval to reallocate originally budgeted amounts.

Before cost reimbursement against a government grant may begin, the IEEE Development Office must have the following documents on file:

1) Grant proposal with budget attached. The proposed budget must include General & Administrative (G&A) expenses incurred by IEEE. The present rate for G&A expense is 8%. In the case of travel grants, a G&A fee of $50 per participant should be included in the budget instead of the 8%. In some cases G&A expenses, sometimes called indirect costs, will not be allowed.

2) Approved grant letter and budget

In order to comply with Government Auditing Standards, all reimbursements against a grant must be processed through the Development Operations Manager.

9.4.1. Travel Grants:
Prior to the conference, a list of eligible travel grant recipients with the maximum reimbursable amount must be provided to the Development Operations Manager. The travel grant recipients should be instructed to submit an expense report with original receipts directly to the Development Operations Manager to receive reimbursement. U.S. Flag air carrier service must be used if such service is available. The difference in cost between first-class air accommodations and coach fair is unallowable. A train, bus, or other surface carrier may be used in lieu of air travel. However, if such travel could have been performed by air, the allowable cost will not exceed that for jet economy airfare.

9.4.2. Grant Expenses
When the grant is supporting publication costs and the IEEE Operations Center prints the materials, the total amount of the grant can be applied to the IEEE publication invoice, thus reducing the amount the conference owes the IEEE Operations Center.

When the grant is supporting other types of expenses, a summary of expenses with copies of paid invoices must be submitted to the Development Operations Manager. If multiple government agency grants are involved, please submit all requests together.

9.4.3. Salaries
When salaries of IEEE employees are included in a grant, a timesheet must be submitted to payroll and copied to the Development Operations Manager referencing the appropriate cost center and IEEE project number. Payroll will record all salaries in the employees home department and record a reimbursed service to the home department and purchase service to the project number.

The Development Operations Manager must, also maintain rejected proposals and related documentation from the government agency, until the record retention period for the grant documentation has expired. Please forward copies of all correspondence related to a proposal must be forwarded to the Development Operations Manager.

Detailed procedures on "How to Obtain Government Grants" .

9.5 CONFERENCE FINAL FINANCIAL REPORTING

9.5.1 General
The final responsibility of the Finance Chair or Treasurer is to prepare a final report by completing the Summary Financial Report form, repay all loans, distribute conference surplus according to prearranged policies, confirm that all physical assets (i.e., conference proceedings or digests) have been distributed and close the conference bank account. The Finance Chair must provide a Detailed (and audited, when appropriate) Final Financial Report of the conference to the Conference General Chair.

9.5.2 Submitting Final Financial Report to IEEE
The Finance Chair (or Treasurer) will prepare the Final Financial Report and supporting documents - Detailed Final Financial Report Parts I and II and the Social Functions Breakdown - should be submitted to the Conference General Chair for submission to each sponsoring entity and to IEEE. The report should be filed no later than six months after the conference date. Financial software is available from IEEE Conference Services to aid in tracking financial data.

9.5.3 Audit of Financial Records
The requirements for auditing of conferences as approved by the IEEE Board of Directors follow:

A) All Conferences wholly sponsored by IEEE as well as cosponsored conferences where IEEE is the lead sponsor (greater than 50% revenue share) with actual or budgeted income or expense equal to or exceeding $100,000 will be audited using one of the audit resources described in "B" below. Conferences with less than $100,000 of revenues or expenses will be audited on a rotational basis. The following fee schedule will apply:

The above fee covers the overall process including audits, guidance on recordkeeping, training and financial report review.

B) To ensure that conferences with income or expense of $100,000 and above are appropriately audited, the IEEE Board of Directors has approved the following steps:

1) A predefined scope of work for the audit of conference financials has been established to ensure:

a) Conference receipts and disbursements are adequately controlled, and
b) Reports fairly represent the financial results of the conference.

2) A suggested set of bookkeeping procedures for both a PC and manual recordkeeping environment is available.

3) The financial reports and records and/or audit reports of the four or five largest conferences will be reviewed by PricewaterhouseCoopers to satisfy their concerns relative to the quality of conference records.

4) The remaining audits are performed by the Operations Audit Department or consultants under contract thereto except for those conferences that decide to have a professional independent outside source audit the final financial reports for their conference. In the latter case the appropriate conference officer will be required to provide Conference Services a copy of:

a) The independent professional auditor's report
b) A memorandum itemizing any adjustments made to the final report as a result of the audit, including the effect of such adjustments on the surplus/loss reported for the conference
c) A debit or credit memorandum covering the change in the conference surplus/loss calculations

Conference Services will provide a copy of the independent audit report and the itemization of adjustments to Operations Audit Department for review. It is the Conference Chairman's responsibility that there be no conflicts of interest involved in the selection of the outside audit resource.

C) Conferences where IEEE is not the lead sponsor (less than or equal to 50% revenue share) but its share of conference revenues is projected to be $100,000 or greater are encouraged participating in the audit process. Where cosponsoring entities agree to the audit but refuse to share in the fee, the IEEE entity will be assessed an audit fee at 50% of the normal rate, i.e., 0.3% of total conference revenues.

D) Audit fees will be incorporated in the conference budget by the Conference Treasurer. The financial report form has been revised to include a line in the expense section for the audit fee. Except for those conferences that choose to engage their own independent outside resources to have their conference financials audited, all conferences will be charged for the audit process, per the schedule outlined in (A) above. Operations Audit Department will contact the Conference Treasurer and issue a memorandum bill covering the audit process fee, based on the Conference Treasurer's calculation of conference revenues and expenses as of thirty (30) days after the close of the conference.

E) Audits of conference financial reports and records are the responsibility of the Conference Treasurer in conjunction with the Operations Audit Department. Operations Audit Department will ensure that conference financials are audited in accordance with the audit guidelines developed for this purpose. If the Conference Treasurer chooses to have the audit arranged for by Operations Audit, it will be completed within 45 days from receipt of the final financial report and all necessary supporting documentation. Audit results will be discussed with the Conference Treasurer before distribution. Approved audit and final financial reports will be distributed by Conference Services to Society and Conference Treasurers.

Based on a review of all audit reports issued on conference financials, the Operations Audit Department will periodically distribute a summary report, listing areas in conference financials requiring improvement. This report is expected to serve as a useful tool for Conference Treasurers in eliminating possible problems in their conference financial reporting process before it is completed and submitted for audit.

F) Conference loans are required to be repaid within one (1) month after the conference. Proper disbursements should be made, and bank accounts should be closed as soon as possible. The final report with any residual funds should be submitted to IEEE Conference Services within six (6) months after the conference. Checks issued for the residual funds from the conference should indicate the name and dates of the conference.

9.5.4 Composition and Preparation - Final Financial Report
Each committee chair should furnish the Conference General Chair a final report on the activities of his committee, including all expenditures or income. These reports may be used as appropriate sections of the Final Financial Report.

9.5.5 Determination of Surplus, Disposal of Physical Assets and Loan Repayment
Any conference surplus shall be determined on a cash basis and divided among the sponsoring entities in accordance with the pre-conference agreement. Disposal of physical assets should follow the pattern negotiated and agreed upon in advance. Meetings, buying hardware for local use, should plan for disposal of unwanted computer hardware to local units, universities, or others. Committee members who receive surplus equipment, books or physical property, in general, should strive to reduce any suggestion of conflict of interest.

Conference surplus cannot be donated to scholarship funds, anniversary celebrations, etc. Distribution of conference surplus funds must be to sponsoring organizers and should be made when the Final Financial Reports are submitted. All checks should be forwarded to the Treasurer of the sponsoring Organizational Unit(s) or to IEEE Conference Services. All conference loans should be repaid in a similar manner. Please identify checks by indicating the name and dates of the conference.

9.5.6 Sale of Conference Proceedings to IEEE TAB Products-Conference Proceedings (Details - Section 7)
The accounting for conference proceedings to IEEE TAB Products-Conference Proceedings will be based on prior agreement between the sponsoring entity and IEEE. When copies are received by the IEEE, the appropriate payment will be sent to the Conference Treasurer or the sponsoring entity, as directed by the Conference Committee. In addition, shipping charges will be reimbursed upon receipt of the appropriate invoice.

9.5.7 Final Financial Report
The Finance Chair (or Treasurer) will prepare the Final Financial Report of the conference for the Conference Committee, which will include all financial information. Software available from IEEE Conference Services may be used for this purpose.

The Conference Committee will furnish copies of the completed Final Financial Report to each sponsor and to IEEE within six months of the end of the conference in conformance with IEEE policy. Instructions for conference closing may be obtained from IEEE Conference Services.

9.5.8 Conference Bank Account
The conference bank account should be closed at the time the Final Financial Reports are prepared. If unpaid obligations are outstanding, for which a final bill has not been received, specific mention should be made of such commitments in the transmittal of surplus funds to IEEE and the amount that should be accrued to satisfy these commitments. When the pending bill is received, the Conference Treasurer would then sign it and forward it, via the appropriate Society officer, to IEEE for payment against the accrual.

Before issuing the Final Financial Reports, the Conference Treasurer should perform a final bank statement reconciliation and ask the bank to issue a cashier's check, payable to IEEE, in the amount of the reconciled bank balance. The final bank balance should agree with the amount shown as surplus on the Final Financial Reports (minus any amounts that have been prepaid to the Society accounts as partial surplus*). The following notation should appear on the payment advice portion of the check:

"To close the checking account of the 20XX IEEE XXXXX Conference."

This will provide documentation that there is no balance left in the account. If additional conference expenses, not accounted for in the above accrual, come in after the account is closed, they should be forwarded to IEEE via the appropriate Society officer for payment from conference surplus.

*No funds will be applied as partial surplus until all obligations (loans) have been met.

9.5.9 Conference Financial Record Retention
The supporting documentation associated with all conference financial transactions (e.g., paid invoices, expense vouchers, hotel agreements, printing and A/V contracts, registration summary reports, exhibitor summary reports, bank statements and canceled checks, etc.) should be retained by the appropriate sponsoring society for a period of five years following the conference. The report of the audit of conference financial records should also be retained with these records.

9.6 WORLD-WIDE TAX COMPLIANCE ALERT

* *ATTENTION* *

9.6.1. Independent Contractors vs. Employees & IRS Form 1099-Misc Reporting Requirements
Businesses, including non-profits, are required to withhold and deposit, or pay income, FICA, and unemployment taxes with respect to most compensation paid to their employees. However, compensation paid to independent contractors is not subject to employment taxes. Instead, the only requirement is to report the compensation paid on IRS Form 1099 at year-end. Because withholding of taxes on employee's wages is the most efficient and effective way to collect taxes, the Internal Revenue Service is very concerned about misclassification of workers as independent contractors, and the IRS imposes significant penalties for failure to properly withhold and pay employment taxes.

IEEE U.S. based Conferences generally don't have employees but do sometimes hire independent contractors. Independent contractors are any individual or organization that supplies services to the IEEE Conference. Complete Part A of the "IEEE Organizational Unit Worker Classification and IRS Reporting Form" found in Section 16 to determine if an independent contractor may be classified as an employee. (The Conference Treasurer may choose to submit the W9 Form information in summary form, using the instructions and form provided below.

Each IEEE U.S. based Conference must file an IRS Form 1099-MISC information return for calendar year payments that total $600 or more for rents, services (including parts and materials), prizes and awards, and other income payments to any individual or unincorporated business (independent contractor - includes tutorial presenters and paid conference organizers).  That is, if an honoraium is paid to tutorial presenters or a fee is paid to conference organizers in an amount of $600 or greater, the recipients of such payment should be issued a 1099-Misc Form. For each independent contractor paid $600 or more, complete Part B of the "IEEE Organizational Unit Worker Classification and IRS Reporting Form" in Section 16 and mail to the IEEE Accounts Payable Department. The final date for information to be submitted is January 10th. All 1099 forms will be completed and filed by the IEEE Accounts Payable Department. The IRS assesses penalties for not filing or not timely filing the required 1099 information returns.  If such penalties are assessed, the Society(ies) that sponsored the conference that did not request for their independent contractors will be responsible for payment thereof to the IRS.

Use of the 1099 Request Form
(Alternate to W9 Form)

Background:

IRS regulations require that a 1099 Form be issued for payments to an individual or unincorporated business in excess of $600 during any calendar year. This requirement applies to payments for honoraria, awards, clerical services, conference management services, including registration services, etc., that a conference disburses from its checking account. The IEEE Accounts Payable Department is responsible for issuing the required 1099 Forms on the conference's behalf. As a result, if individuals perform services for more than one IEEE conference during the calendar year, they will receive only one 1099 Form, covering all of the payments they received from IEEE entities (including conferences).

Procedure:

Print a copy of the form from the attached file and enter the conference name (including year) at the top of the form. Then enter the required information for each individual or unincorporated business that a 1099 Form should be issued to.

Be sure to enter the total amount paid to these individuals/businesses, during the calendar year, and the code "3, " if the payment is for an Award or the code "7," if the payment is for Other Compensation (e.g., honorarium, clerical service, conference management services, etc.). Finally, forward the form as soon as it is completed, but no later than January 10th of the following year, to: Sr. Accounts Payable Administrator, IEEE Accounts Payable Department, P.O. Box 1331, Piscataway, NJ 08855-1331. The form may be faxed to +1 732 562 5455 or the information may be e-mailed to p.pascale@ieee.org

The Accounts Payable Department will enter the information from the form into the IEEE accounting system. If any other payments have been made to the individuals/businesses, listed on the request form, they are combined on the 1099 Form that Accounts Payable prepares. The 1099 Forms are mailed to recipients of payments from IEEE entities on or before January 31 of the following year.

If you have any questions regarding the above procedure, please call or e-mail Peg Pascale at either
+1 732 562 5369 or p.pascale@ieee.org

1099 Request Form

9.6.2. The IRS Issues NEW Gift Receipt Rules
Effective January 1, 1994, a U.S. donor will not be allowed to take a charitable deduction for a donation of $250.00 or more unless he or she has obtained a receipt from the charitable organization. Separate payments are regarded as independent contributions and are not combined for purposes of measuring the $250 threshold. This new law affects U.S. IEEE Sections, Chapters and IEEE Conferences, since IEEE now falls under Section 501(c)(3) of the United States Internal Revenue Code and qualifies as a charitable organization. Also affected are non-U.S. Conferences that accept donations from U.S. residents and corporations.

The receipt can be in the form of a letter or a postcard. Section, Chapter, or Conference letterhead is recommended since it already has IEEE's name on it. The full legal name of the IEEE, "Institute of Electrical and Electronics Engineers, Inc.", must identify the Section, Chapter, or Conference in the receipt. The acknowledgement letter need not include the donor's social security number. In the letter, you must include (1) the amount of cash contributed, (2) a description of any property other than cash contributed (do not include the value of the property), (3) whether your Section, Chapter, or Conference provided the donor with any goods or services in exchange for the contribution, and (4) a description and good faith estimate of the value of those goods or services. View a sample acknowledgment letter.

Another IRS rule effective January 1, 1994, states that a charitable organization must provide a written disclosure statement to donors that receive goods or services in return for a donation. The statement must inform the donor that the amount of the donation that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by your Section, Chapter, or Conference, and provide the donor with a good faith estimate of the value of the goods or services that the donor received. The disclosure can either be made with the solicitation or upon receipt of the donation. If the disclosure is made with a particular solicitation, it is not necessary to provide another statement when the associated contribution is received unless the contribution is $250 or more. The disclosure must be in writing and must be made in a manner that is reasonably likely to come to the attention of the donor. Small print within a larger document might not meet this requirement.

You must keep copies of all Gift Acknowledgments or Receipts and copies of all Disclosure Statements. In some cases, a donor may lose his or her receipt and request a copy. Also, should the IRS question a donor's contribution or audit the IEEE, these copies may have to be presented to the IRS. There are penalties imposed by the IRS on organizations that do not provide required receipts and disclosure statements. Copies of all receipts and disclosure statements must be attached to the Financial Reporting to IEEE. PLEASE REFER ALL QUESTIONS TO the IEEE Tax Compliance Department. (Tel. No. +1 732 562 5334 or 5351).

9.6.3. State Sales Tax Exemptions
The IEEE has been granted exemption from paying sales taxes on purchases made in the following states:

In Maryland, an IEEE Conference need only give IEEE's Maryland tax exempt account number, 31150684, to the vendor to avoid paying sales tax, but the vendor also has the right to see the exemption certificate issued to IEEE. In the remaining states, a vendor must be given a copy of the tax certificate issued to IEEE. Please contact IEEE Tax Compliance Department, +1 732 562 5334 or 5351 for copies, when needed.

SUGGESTED GUIDELINES FOR CONFERENCE TREASURER

The Conference Organizers web page includes tools for
Treasurers to track conference financials.

I. Control Systems

A. Receipts

1. When a check is prepared for deposit, endorsement should include account number, bank and "for deposit only."
2. Verify that the check has the proper date, amounts are in agreement and check is signed and drawn to the correct payee.
3. Make sure the sum of deposit slips equals the total of actual checks.

B. Expenditure Authorizations

1. Authorized signature on file
2. Signed contracts
3. Written estimates

C. Disbursements

1. Verify documentation and authorization.
2. Mark documents paid, including check number, amount and date.
3. A non-negotiable copy of checks is helpful, but not necessary.
4. File supporting documents by most convenient manner, but establish a system and stay with it. (check number order is preferred)

D. Bank Reconciliation

1. Prepare the monthly bank reconciliation as soon as the statement is received.
2. It is preferable to have someone other than the Treasurer perform the monthly reconciliation.
3. Examine the signatures on reverse side of checks.
4. File canceled checks with the statement and send a copy of reconciliation to Chair.

E. Meeting Registrations (at Conference)

1. Have pre-numbered cards or tickets for each registration rate.
2. Verify that the Cashier accounts for all pre-numbered cards or tickets, either with the unused tickets or the cash.
3. Tally the registration cards used - with registrations recorded - each night.

F. Advance Registrations

1. Prepare listing of payments received for deposit support.
2. Provide copy of listing to registration staff for badge preparation and registration record.

II. Recording System - Columnar Form

A. Receipts

1. Date recorded
2. Issuer of check or payor
3. Check number
4. Amount
5. Reason for receipt (Functional Allocation)
6. Deposit total and date
7. Total for month
8. All deposits should equal sum of checks received

B. Disbursements

1. Date recorded
2. Check number (include voids)
3. Payee name
4. Amount
5. Reason for payment
6. Total for month
7. If using any of the tools offered to conference organizers, (i.e., Quicken, Quickbooks, etc) specific instructions are included in each

C. Documentation
As much as possible, have written documentation for everything.

POSITION OUTLINE: CONFERENCE TREASURER

As the primary fiscal planning and operations member of the Conference Committee, the Conference Treasurer performs the following:

A. Develop Conference Budgets, using prior years' conference financials as a starting point and updating the conference's budget based on planned changes in participation, content, fees to be charged for the various activities, etc.

B. Prepare and submit budget documents for approval by IEEE Conference Services.

C. Establish a conference bookkeeping system and prepare periodic financial reports for review by the Conference Finance Committee to insure financial conditions are progressing as expected throughout the conference cycle.

D. Determine how much of an advance, if any, will be required to fund the startup phase of the conference and complete the necessary paperwork.

E. Establish a bank account for the conference with the proper signatory powers.

F. Review all service contracts and pay contract billing only in accordance with the prices quoted in the contracts and after approval of the appropriate conference officer.

G. Deposit proceeds from conference registrations, exhibitor booth and table rentals, publication sales, extra social activity tickets, etc., in the conference bank account on a timely basis. The total amount of each deposit should tie back to a report prepared by the activity generating the revenue, e.g., registration system reports should agree with the total of registration fee deposits.

H. Establish a method of handling credit card receipts such that funds collected from the credit card companies are deposited in the conference bank account in a timely manner. The IEEE Treasury Dept. offers a credit card collection arrangement. It charges no fee for this service and funds are wire transferred to the conference account at frequent intervals.

I. Perform monthly reconciliations of the conference bank account(s).

J. Establish petty cash funds and procedures for reimbursement of the fund when the balance drops to a minimum level. Insure all reimbursements are supported by receipts, where appropriate, attached to signed petty cash vouchers.

K. Report all payments made to independent contractors at the end of the year in which they were made to IEEE Accounts Payable so that 1099 Forms may be issued to the involved individuals or unincorporated businesses.

L. At the close of the conference, ensure that all receivables are collected, all funds are deposited in the conference bank account(s) and all outstanding bills are paid.

M. Repay all conference loans within thirty days of the close of the conference.

N. Prepare the interim conference financial report and submit it to IEEE Conference Services within three months of the close of the conference.

O. Prepare the final conference financial report and submit it to IEEE Conference Services within six months of the close of the conference.

P. Arrange for an audit of conference financials either through IEEE Operations Audit Department or another independent professional source. Provide a copy of the audit report to Conference Services.

Q. Submit conference surpluses to IEEE and close conference bank account(s).

R. Other responsibilities of this position include:

1. Secure insurance and bonding for the conference through IEEE or another source approved by the Conference Committee.

2. Arrange for guard and security services for the conference, including coverage for the exhibitor area.

HOW TO OBTAIN FEDERAL GRANT SUPPORT

" GRANT " - a generic definition

A grant is a "one-way, voluntary transfer of money or other economic goods or services form a Funder to a Grantee made in order to support the philanthropic activities outline by the grantee in the Proposal. Grants are distinguished from other market activities, including contracts, in three ways: (1) The funder gets nothing of economic value back in return for making the grant; (2) grants are made only for philanthropic purposes, broadly defined as alleviating dependency or enriching cultural opportunities; and (3) it is the grantee who initiates the transaction and defines the uses to which the grant funds will be put. Most grant are awarded on the basis of selection from among competing proposals." --C. Smith and E. Skjei, Getting Grants

APPLYING FOR GOVERNMENT GRANTS
IEEE conferences in the past have received grants in support of travel for speakers, travel for participants who would otherwise be unable to attend, support of conference publications, support for conference administration, and other purposes. Applying for grants should be considered early in the conference planning process. Successful grant proposals are mailed at least one year before the conference date and take about three to six months to obtain an approval. In the case of travel grant proposal, sufficient lead-time is necessary to be able to offer the grants in the conference promotions.

Most conference proposals will be unsolicited. An unsolicited proposal is prepared and submitted by an institution on its own initiative without a formal written solicitation from the government agency. Contacting the government agency's program personnel is encouraged to help determine if preparation of a formal proposal is appropriate. A conference committee member who works for the government agency or has government contacts should can make contact.

Begin with a phone call to the government agency and request to speak with a program officer. Convey a positive attitude about IEEE and your project. Be prepared to discuss IEEE, your association with the organization, and your proposed project. Once you have obtained initial interest in the proposal begin asking the following questions:

• Do you have specific forms, which must be utilized?
• Would you or someone on your staff be willing to review our proposal if we send it to you before the deadline?
• What will the average grant award be this year?
• What is the most common mistake in the proposals you receive?
• Would you explain the review/evaluation process to me?
• Do you have any recommendations related to how to write our proposal?
• Would you recommend a previously funded proposal for us to read?

INFORMATION SOURCES
Information on government funding opportunities include:

1. The Catalogue of Federal Domestic Assistance (CFDA)
2. The Federal Register
3. Commerce Business Daily
4. Program announcements on government agency web sites

PROPOSAL SUBMISSION
Government agency proposals can be complicated and lengthy. Careful review of the application guidelines is critical. Readers normally grade these proposals according to a point system. Each section of the proposal is assigned a specific number of points. Readers are given a checklist with specific criteria for allocating points. The readers will be looking for certain items to be included in a section because the items were requested in the