Explanatory Notes for the EERI-NC Budget as of December 2004 General and Responsibilities The Chapter operates on a calendar budget year. All proposed major expenditures in excess of $300 should be conveyed by Committee Chairs to the Chapter Board for its review and approval prior to the expenditure. All records of minor expenditures $300 or less by Chapter Committee Chairpersons must be sent to the Chapter Treasurer for approval prior to the Treasurer submitting them to EERI National for reimbursement. Members should obtain their Committee Chair’s approval for making expenditures on the Chapter’s behalf. Chairpersons should keep their Board Contacts abreast of planned activities and estimated expenditures. All records of major expenditures and requests for reimbursement by Chapter Committee Chairpersons must be sent to the Chapter Treasurer for approval prior to the Treasurer submitting them to EERI National for reimbursement. The Chapter Treasurer will help direct EERI staff on which budget category and line item to post the expenditures. Those who will typically be requesting funds are Committee chairs. The EERI Controller should contact the Treasurer for advice when there’s doubt as to which line item an expense should be posted. EERI’s Controller posts the Chapter’s transactions once approved by the Chapter Treasurer and produces periodic budget reports. EERI’s Executive Director is the fiscally responsible individual for the Chapter as the officer of EERI National’s non-profit corporation.
Revenues Dues are $25 for all members except student, retired, and young professional members. The Chapter began collecting dues in 2003. Prior to that, EERI National supported the Chapter. Dues paying members have grown since then from 208 dues-paying members to 229 members in 2004. FEMA Grants are issued annually and are “use it or lose it” funds. FEMA’s office in Washington, D.C. is the grant manager. At the end of each Federal Fiscal Year in October, the unspent portion of these grants can revert back to EERI National. At times, EERI National has redirected unspent chapter funds to other activities at this time. FEMA expects that these funds will be used for earthquake mitigation activities and that the Chapter will recognize and give credit to FEMA during such activities and on any written or electronic material generated.
Draft Version February 10, 2009
Page 1
Special Projects Initiative Grants from EERI are currently available to the chapter until 2006. These funds are from endowments and other donations by EERI National members. There are no limitations imposed on the Chapter for how these funds may be used. Nevertheless, the Chapter should recognize and thank the Special Projects Initiative and EERI National for its generosity when using these funds. Chapter Expenses The Board intends to track those expenses for activities that can be best funded by member dues in this section. General staff support such as web page updates regarding General, non-Quake 06 Chapter activities and accounting that is not associated with a workshop or other activity that can be justified under grant-related expenses are included in this section. Staff Services and Benefits: The EERI Controller will periodically report to the Board the staff’s expenditures. Conference Calls: This line item is anticipated when several members of the Chapter had planned to travel overseas for extended periods of time and expected to participate in meeting via long-distance phone. Federal Express/Postage: This line item is anticipated to allow for rapid exchanges of information to Board members or workshop speakers. (Chapter) Meeting Expenses: Bi-monthly meetings are budgeted for refreshments and, depending on the meeting room location, security expenses or room rentals. The Program Committee Chair will typically request these funds. Awards: Annually each April, the Chapter recognizes outstanding risk reduction efforts. The Ad Hoc Awards Committee Chair will typically request these funds. Press Conferences: Semi-annually each April and October, the Media Committee plans for activities. Expenses include handouts, refreshments, room rentals, audio/visual and security. The Membership Committee Chair typically requests these funds. Chapter Committee Expenses: Membership, Legislative, Website, Nominating, Strategic Planning Committees and non-Press Conference-related expenditures for the Media Committee go here. Quake 06 Campaign Committee Expenses: Quake 06 Steering, Government, Utilities and Transportation (Lifelines), Historical Buildings, Schools, Residential, Commercial/High Tech, and Seismic Hazard Committee activities that are not associated with grant-related expenses and that are best funded by member dues go here. Grant-Related Expenses: Large projects that focus on risk reduction efforts that can be funded by external grants.
Draft Version February 10, 2009
Page 2
Staff Services and Benefits: The EERI Controller will periodically report to the Board the staff’s expenditures. Staff Travel: FEMA requires EERI to travel to coordination meetings. A portion of EERI National’s travel expenses is allocated to our Chapter. This line item was not anticipated at the beginning of 2004. It was brought to our attention by the EERI Controller and approved by the Board at its October 2004 Board meeting. Indirect Charges: EERI charges 33% of Committed Grant-Related Activities that are funded by FEMA to the Chapter for overhead. This line item was not anticipated at the beginning of 2004. It was brought to our attention by the EERI Controller and approved by the Board at its October 2004 Board meeting. Committed Grant-Related Activities: At the beginning of 2004, the Board and the EERI Controller estimated that typical workshops have been generating $1500 in expenses and $2760 in staff support benefits and indirect costs. The EERI Controller is available to the Chapter to help develop estimates for different, larger or smaller efforts. Chapter Committees are responsible for developing and refining scopes of work and budgets for such activities. Board Contacts will seek review and approval of the Board for such expenditures and activities before they are initiated. Quake 06 Campaign Website Support: That portion of the website that is devoted to risk reduction and information about the Campaign can be funded by grants. Uncommitted Grant-Related Activities: At the beginning of each year, the Board seeks estimates from Chapter Committees about their expected expenditure plans for the year. As developments and refinements occur, eventually the activities become committed. Uncommitted funds that are unused by the Chapter in October at the end of FEMA’s fiscal year and may be directed to other activities by the Board or EERI’s Executive Director. Actual Performance Including Grants and Not Including Grants The budget differs considerably from actual expenditures so this section is an aid to track actual revenues versus actual expenditures. Expenditures for both Chapter and Grantrelated Expenses have been considerably lower than budgeted in both 2003 and 2004. Dues collected from prior years will accrue for the Chapter’s future use, but grants will revert if unused depending on their sources and time frames.
Draft Version February 10, 2009
Page 3