FY2014 K&C Division Budgeting Plan November 10, 2012

1. FY2014 K&C Division Budgeting Plan November 10, 2012

2. Why is Division Budgeting Important? • ASME Budgeting Consistency; brings all divisions in sync. with society-wide budgeting cycle. • ASME Policy 2.1 Compliance; divisions with expenditures over $100K must satisfy itemized budget requirement. • ASME Policy 8.1 Compliance; budgets are a key component of division health assessment. • Continuous Improvement; provides a key financial tool for effective division management. • Fiduciary Responsibility; improves financial visibility and accountability.

3. Division Budgeting Overview • Background • Technical Divisions have no previous budgets or budgeting process. • Divisions can view financial data through crystal reports; however timing lags and net conference surplus bookings limit the usefulness of historical financial data for planning purposes. • FY2014 Budgeting Objectives • Introduce division budgeting as part of continuous improvement effort. • Develop preliminary activity budgets for all divisions. • Update budgets to include BOG-K&C Targets. • Auto upload final budgets to ASME Systems; Starting March 1, 2013. • Complete Budgeting Process: March 15, 2013.

4. Division Budgeting Process BOG – K&C Targets for Rev & Exp allocation (Top Down) Division Leaders & Program Mgt. Activity Focus (Bottoms Up) ASME Accounting Systems ASME Finance and Program Mgt. Staff ASME Finance EPAT Create MS Excel Template Initialize MS Excel Workbooks Review, Update & Approve Preliminary Budgets Revise and Approve Final Budgets Initialized MS Excel Workbooks Approved Preliminary Budgets Approved Final Budgets Upload to ASME Accounting MS Excel Template Dec Jan Feb Mar Sept Oct Nov Timeline Roll Out at Congress

5. Excel Workbook Template Schedules (sub-worksheets) Summary Worksheet: e.g. Aerospace …

6. Excel Workbook Initialization • FY2010 through 2012 Historical • Actual from Accounting Systems. • FY2013 Budget • Based on input from divisions if they submitted a plan. • Flat to FY2012 for divisions that did not submit a plan. • FY2014 Budget • Includes Conference Budget download from EPAT. • 3% growth assumption. • FY2015 & 2016 Budget • 3% growth assumption.

7. Budget Review and Updates • Preliminary Budgets (bottoms-up) • Focus on developing activity/transactional based budgets relative to custodian funds: • Updates Can be Entered as: • Amount values in revenue and expense cells, or • Percentage growth rates in rate cells • Final Budgets (revise for top-down targets) • Includes “Higher Level” BOG-K&C Targets • Approval by Division Chair and Program Manager • Group Leader Approval (with staff director) • TCOB Leader Approval (with staff director) • K&C Approval

8. Excel Workbook Upload Div 1 Approved Final Budgets Budgets Used As A Vital Tool For Effective Division Management Standard Excel Template Reduces Data Upload Effort Div 2 Approved Final Budgets Division Operations And Evaluation Upload to ASME Accounting . . . Budgets Used In Division Health Assessment Upload to Coincide With ASME Society-Wide Budgeting Process (Target March 1, 2013) Up to Div 32 Approved Final Budgets

9. Potential Issues & Considerations

10. Budgeting Milestone Schedule

11. Thank You!