Section Leadership Training

1. Section Leadership Training

2. Section Leadership • The purpose of this training is to provide section leaders with a better understanding of the responsibilities of sections within the overall operations of AACE International. We encourage all section leaders to familiarize themselves with the resources available in this training module as well as the numerous resources available through the AACE International website at www.aacei.org

3. Organizational Format • Rather than duplicate existing resources already available on our website, this orientation will direct participants to supporting web-based resources when appropriate. • This approach will not only assure that the information in the Section Leadership Training program reflects the latest information available, but should provide section leaders a better understanding on how to use the website as a valuable resource in the future.

4. The Ultimate Purpose: Our Members and Profession Why we exist!

5. The Importance of Bylaws • Sections leaders must assure that they understand the responsibilities and limitations that they operate under as part of AACE International. Reviewing constitution and bylaws provisions is a key step in understanding your role in the organization.

6. AACE Bylaws • AACE International is organized as a 501(c)3 organization under the auspices of the United States Internal Revenue Code. In order to be in compliance with provisions of the code, we must abide by various laws and regulations governing such legal entities.

7. Association Bylaws • As a 501(c)3 organization, our AACE International bylaws is the most important governing document and may only be amended by a vote of the membership.

8. Bylaws • The provisions of our bylaws are binding on the action of the Board of Directors, all subsidiary boards as well as any entities created by AACE International, including our sections. Bylaws provisions override any Board policies or procedures. Any section bylaws provision not consistent with the AACE International bylaws is considered null and void. It is important that you review and understand your section bylaws.

9. Your Current Bylaws • AACE International has created an online library of our records showing what appears to be the last approved bylaws for each section. To download that latest version, please click here. • If you believe your section has a more recent bylaws than the one reflected, please contact AACE headquarters immediately so we can resolve the difference. Contact staff at membership@aacei.org

10. Bylaws, Policies, Procedures

11. AACE Policies • The Board of Directors is responsible for establishing policies for the organization. While the Board may delegate responsibility for implementation of policies or the creation of processes and procedures to associate boards, committees, task forces, and staff, binding policy is only approved by Board of Directors action.

12. Constitution and Bylaws • To review the AACE International constitution and bylaws online, click here. • To review the current model section bylaws, please click here

13. Amending the Section Bylaws • Sometimes a section discovers that their bylaws are outdated and they want to amend. • In order to amend the bylaws, the section should review the current section bylaws model and attempt to align as closely as possible to the model. Any amendments should be presented to the Executive Director for review prior to presenting for a vote by the membership.

14. Organization Chart

15. Role of the AACE Board • The Board of Directors is elected by the membership and is governed by the provisions of the bylaws as well as applicable laws and regulations. • The basic role of the Board of Directors is • Establish the strategic direction of the Association through a well defined vision, mission and strategic plan • Create policies for the betterment of the total cost management profession • Create a sound organizational plan that aligns organizational resources effectively

16. Board of Directors • To review the current Association Vision Statement, click here • To review the current Association Mission Statement, click here • To review the current Association Strategic Plan, click here • To review the current organization chart, click here

17. Your Elected Leaders • The AACE Board structure: • President • President Elect • Past President • 4 Vice Presidents: Finance, Administration, Regions and T/E/C • 8 Regional Directors • Executive Director (Non-voting) • Click here for current board

18. Elected Leaders • Your elected Board of Directors, Associate Board members, and committee and task force members serve without compensation and generally without reimbursement of expenses to attend meetings. Their commitment to AACE International is a true labor of love for the profession.

19. No Campaigning Rule • The Association Board recognizes that the professional reputation and experience of candidates for Association office are ample testimony to their qualifications and ability to serve. Further, it is believed that these credentials do not need amplification and that campaigning for office by, or on behalf of, candidates is unnecessary, undesirable, and unprofessional. For more information, click here.

20. Sections Determine Voting • In elections for Regional Directors, a Member may vote for the Regional Director in his or her own region as defined by the primary section affiliation at the time the Member votes. A Member may stipulate the section or regional cyber-section that they want designated as their primary section affiliation by contacting AACE headquarters.

21. Board of Directors Election • Each August, the President appoints a Nominating Committee to be chaired by the immediate Past President. The committee will be charged with the responsibility of encouraging candidates to run for the open positions on the AACE International Board of Directors. The committee will attempt to have at least two candidates for each position available. • The committee will bring forth a slate of candidates by October 31st that will be announced to the membership.

22. Board of Directors Election • After the slate has been announced, individuals not on the slate may petition for consideration on the ballot. For details on that process, click here. • Information on the candidates will appear in the Cost Engineering journal and members will be able to vote online starting February 1 with the election closing on March 15. • The Tellers Committee will announce the results of the election after they are certified at the Spring Board Meeting.

23. Inter-relationships • To be effective, AACE International must have sections, regions, and all association entities properly aligned.

24. Role of the Associate Boards • AACE International’s Board of Directors has created three major associate boards that have been delegated certain responsibilities and authority in the Technical, Education, and Certification areas.

25. Associate Boards • Each of these boards has a specific charge and responsibility that is described in detail on the website:

26. Basic Board Responsibilities

27. Committees/Task Forces • North American Marketing Committee • International Marketing Committee • Mentoring Advisory Committee • Women in Project Controls Committee • Young Professionals Task Force • Diversity Task Force • Note: only entities with approved charters are included

28. Staff Responsibilities • Process more than 7,500 membership applications and renewals annually • Process more than 2,000 certification and re-certifications applications annually • Plan and execute the Annual Meeting with more than 800 participants • Work with and provide services to more than 80 sections • Maintain and develop the AACE International website

29. Staff Responsibilities • Edit and publish the monthly Cost Engineering journal • Edit and publish the monthly e-newsletters • Edit and publish various books, recommended practices and similar education materials • Facilitate the peer review process for technical papers for the Annual Meeting • Create and implement the annual marketing and communication plan • Support the annual college scholarship program

30. Staff Responsibilities • Manage and account for the annual budget of $3 million • Assure that the Association is fully in compliance with all governmental regulations and laws as well as with the requirements of various accreditation organizations such as CESB.

31. Role of Staff • The primary role of AACE International headquarters staff is to implement policies as approved by the Board of Directors through appropriate procedures and processes. • We have a headquarters staff of 16 in Morgantown, WV. • To see a brief description of staff responsibilities and contact information, click here.

32. Regional Directors’ Contacts • If you are unsure who your Regional Director is or what region you are assigned, please consult our website by clicking here. • This will take you to a comprehensive list of all sections, divided into regions with the Regional Director’s contact information provided. This page also provides you with the current contacts of all the other section leaders.

33. Regional Director Roles

34. Primary Section Functions

35. Reports to Regional Director • As part of the alignment process, the Board reviews reports on the status of sections within the eight regions at each of its meetings. In preparation for those meetings, your Regional Director will contact you to provide information to assess your section’s status. • This may include such items as attendance trends at meetings, status of finances, etc. Please respond to those requests promptly as they provide an important measure of the Association’s vitality.

36. Section Financials Section Financial Obligations: Essential facts for operating a successful section.

37. Fiduciary Responsibilities • As a section officer, you have a fiduciary responsibility for being a good steward of the section’s funds. As such, you need to assure that the finances are handled in a safe and prudent manner and that your section follows the provisions governing not for profit organizations for filing taxes and forms with the proper government agency.

38. Section Financials • Sections should have a written policy regarding the distribution of funds and who has authorization to write checks. • It is recommended that an audit committee reviews the financial statements against the financial reports annually • As officers change, the section should assure proper transfer of the right to sign checks with the section bank

39. Section Financial Duties • Each section should have an approved annual budget showing anticipated income and expenses • Each section should have an annual audit conducted by individuals appointed by the section Board • Each section should have financial reports prepared and reviewed on a quarterly basis by the Board of Directors

40. Financial Responsibilities • While sections are part of a 501(c)3 not for profit organization, US sections still must file tax forms as required by the US Internal Revenue Service. Sections located in other countries should check with the appropriate governmental entity to determine tax requirements.

41. US Section Tax Deadlines • May 15 is the deadline for all U.S. sections to file the 990-N or 990-ES. Any Nonprofit Organization that has gross receipts less than $25,000 can file the 990-N online. This form requires name, address and principal officer as well as gross receipts data. Sections that fail to file by May 15 risk losing their tax exempt status. Any section that does not have a Tax ID Number must apply for one immediately. You can do this by using form SS-4. • All U.S. tax returns regardless of income level, must show the tax identification number and the Exemption Code Paragraph Number 501(c)3. The tax return should also show Group Exemption Number (GEN) 1672. • This also can be done online. • URL Address: http://epostcard.form990.org.

42. Sections Can’t Obligate AACE • Sections do not have the authority to enter into any contractual obligations on behalf of AACE. Any expenses or debts incurred by a Section will be the liability of the Section and the Section officers.

43. Reporting Section Officers

44. The Membership Process

45. Calendar Year vs. Anniversary • AACE will return to a January 1-December 31 billing cycle for all renewals and new members beginning in 2011. Our intent is to have all members have a common beginning and end date. This will make identifying and following up on lapsed members much easier for section leaders and staff. Sections should focus on following up with lapsed members locally in January-February.

46. Build Membership • Building and promoting membership in their service areas is one of the primary responsibilities of a section. While AACE International can provide membership promotion and marketing materials, the sections represent the best “sales team” for building membership.

47. Recruitment Resources • Online Presentation: AACE International has created an online membership presentation that can be used to explain membership to prospective members. To review the presentation, click here • Member Get A Member Campaign: To encourage members to actively recruit new members, we have put in place a Member Get A Member campaign with incentives for members. For more details, click here.

48. Recruiting New Members • With the return to calendar year billing, the optimum time to recruit new members will be October-December. A new member who joins in October would receive the balance of that year’s dues for free by paying the following year’s dues in full. As a result, the new member will have 15 months of benefits before having to make a renewal decision. We encourage sections to gear up their recruiting efforts in the October-December time frame.

49. New Member Recognition • Upon joining AACE International, the section is notified of the person’s contact information and encouraged to invite the new member to the next meeting. Does your section have a formal program for welcoming new members? • Upon joining, the new member will receive a series of emails explaining the membership benefits within AACE International and how to take full advantage of their dues investment.

50. Ordering Membership Brochures • In order to reduce storage and paper waste from obsolete forms, AACE International has gone to a just in time printing system for membership brochures and similar promotional items. To request membership brochures, contact staff at membership@aacei.org