SFBAC Money Matters

I am pleased to provide an update on the chapter’s finances, in my role as the SFBAC Treasurer.  Our chapter is fortunate to be in a strong financial position, with over $44,000 in our accounts with Wells Fargo Bank.  This article summarizes the income and expenses associated with chapter activities over the two years that I have been Treasurer.

Table 1 shows the balances in our bank accounts as of September 2014.  These funds have enabled the chapter to pursue its many activities, which primarily involve meetings, projects, and participation at INCOSE conferences.  The CD has a six-month term and was renewed on 5 June 2014 at an interest rate of 0.1%.

Table 1.  SFBAC Bank Account Balances.

Chapter income is largely provided by INCOSE Headquarters, based on a portion of the revenue INCOSE receives from SFBAC membership renewals and a share of the income derived from the annual International Symposium and Workshop (IS and IW).  SFBAC income over the last two years was $8905, received in four payments, with values ranging from $1900 to $2675.  We occasionally receive income from seminars or workshops that SFBAC may present, but these are small amounts and occur irregularly.  No Other Income was collected in the past two years.

The expenses incurred by the SFBAC’s activities are summarized in Table 2 and illustrated in Figure 1.  Over 90% of chapter expenses are seen to be associated with meetings and conferences.  The Conference Attendance line shows the costs incurred to sponsor member attendance at the IS and IW over two years.  This is 68% of our expenditures.  Meeting Expenses represent the cost of holding our monthly chapter meetings and the Transformational Systems Engineering workshops.  These involve refreshments and occasionally the rental of meeting space.

Table 2.  Two Years of Chapter Expenses.

Marketing costs are associated with spreading the word about SFBAC activities.  The chapter maintains a membership in the Silicon Valley Engineering Council (SVEC) and has a representative attend their meetings.  For a nominal annual dues payment, SFBAC represents INCOSE in SVEC activities and at the prestigious annual Silicon Valley Engineers Week Banquet and the SVEC Hall of Fame.  Marketing funds are also used to cultivate interest in Systems Engineering and INCOSE among engineering students at universities.  The Miscellaneous costs are small and cover postage, envelopes, and bank fees.

Figure 1.  Breakdown of Expenses.

Comparison of the two-year chapter income and expenses shows that expenses have exceeded income by $5060, averaging $2530/year.  This primarily results from the SFBAC Board of Directors’ decisions to sponsor member attendance at the IW and IS, which is investing in our people and the overall international organization.  Great benefits are attained by sharing ideas at these large meetings.  The Board will continue to carefully weigh the use of chapter funds to gain the most benefit for its membership and the Systems Engineering profession.  As you can see, the chapter continues to be in a solid financial footing to continue our activities.

By Clark Ince

INCOSE SFBAC Treasurer

Clark Ince’s Bio