I  U  P  A  C






News & Notices

Organizations & People

Standing Committees

Divisions

Projects

Reports

Publications

Symposia

AMP

Links of Interest

Search the Site

Home Page

 

 

 News & Notices

Minutes of 127th Meeting of Executive Committee
24-25 March 2000, San Franscisco, California, USA


4. FINANCE COMMITTEE

4.1 REPORT FROM FINANCE COMMITTEE MEETING, FEBRUARY 2000
Dr. Przybylowicz noted that due to his inability to fly to Z�rich because of bad weather, Prof. Ward had chaired the meeting. Specific items discussed at the Finance Committee meeting of interest to the Executive Committee would be discussed under the appropriate headings of the subsequent agenda items.

4.2 STATEMENT OF ACCOUNTS FOR 1999
Dr. Buxtorf observed that the overall financial situation of the Union is very good. He noted that 51% of the Union's revenues came from National Subscriptions, more than 33% from publications, and 15% from dividends and interest plus miscellaneous sources.
He reported that the Finance Committee had had an extensive discussion of the desirability of taking exchange rates into account when setting National Subscriptions. It was decided to continue using US dollars because any attempt to change to an alternative, such as a basket of currencies, would lead to excessive complications. Special situations would continue to be handled on a case by case basis.

4.3 NATIONAL SUBSCRIPTIONS
Dr. Buxtorf reported that the Finance Committee had discussed the current formula for calculating National Subscriptions and had concluded that the formula should not be changed. The Executive Committee recognized this discussion and approved the decision.

4.4 REVIEW OF BUDGETS FOR 2000-1 AND CAPITAL BUDGET FOR 2000
Dr. Buxtorf noted that care would have to be exercised in considering requests for additional funds from the operating reserve. How do we make sure that the first to apply do not gain funds at the expense of later, possibly better, projects? Dr. Becker described the evolution of the procedure for approval and funding of projects, as described under item 14. He pointed out the need for flexibility in funding during the transition period, 2000-2001, when Commission operations consume a large fraction of divisional budgets. He briefly reviewed the situation in Division VI that had led to a request for funds in addition to the original budget as an example.
Dr. Hayes asked that the column labeled over/under in the Management Accounts Reports be instead labeled favorable/unfavorable to make interpretation easier.

4.5 ALLOCATIONS TO IUPAC BODIES, 2002-3
Dr. Becker briefly described the earlier discussions of how to approach the subject of allocation to IUPAC bodies in 2002-3, especially to Divisions. The scheme labeled C in the paper from Prof. Ward had been adopted by the EC last year as that giving the most flexibility. The intention is to increase the allocation to Divisions in future biennia based on the experience gained in allocating the undistributed Division/Standing Committee reserve during the biennium on the basis of needs. There was a discussion of the value of a zero based budget approach to allocations. The conclusion was that such an approach, while attractive in the abstract, had too many practical difficulties to be adopted.

4.6 COMPANY ASSOCIATE FEES
Dr. Jost reported that a letter that had been sent to those NAOs whose Company Associates paid their fees directly to the Secretariat. The responses received covered all the possibilities regarding the use of the fees. Most NAOs had not responded. Fees from Company Associates of those NAOs would continue to be added to the general funds of the Union. Dr. Jost also noted the certificate of membership developed for Company Associates. These certificates have been sent to the NAOs for distribution to Company Associates when they have paid their 2000 fees.

4.7 OFFICIAL IUPAC ADDRESS - ACTION
The change of the Union's official address to Reber and Co., Z�rich, Switzerland proposed by the Finance Committee was approved.

4.8 DISCUSSION OF INVESTMENT POLICY STATEMENT
Dr. Przybylowicz informed the Committee that USD 200 000 had recently been taken from the Union's checking account and invested. In addition, USD 50 000 had been transferred from the operating reserve to the Southern Hemisphere Fund and USD 600 000 had been transferred from the operating reserve to the Endowment Fund. The return of the investment portfolio had been ~11% in 1999. The Investment portfolio was invested in stocks and bonds with a ratio of 60:40. The stock portion of the portfolio was invested in US and European funds in a 60:40 ratio.
Dr. Przybylowicz described the reasons for the proposal of the Finance Committee to adopt an Investment Policy Statement. The Committee felt that such a statement would be useful in communicating with the Council and other groups. The Executive Committee asked the Chairman of the Finance Committee to continue development of an Investment Policy Statement. In addition to the subjects covered in the draft statement, the final statement should include a discussion of the Operating Reserve, the Endowment Fund, and the Southern Hemisphere Fund. The Committee suggested a separate policy statement be developed regarding the use of the income from the Endowment Fund. After approval by the Finance Committee, these statements should be brought to the Executive Committee and the Bureau for approval in 2001.


Page last modified 6 June 2000.
Copyright ©2000 International Union of Pure and Applied Chemistry.
Questions or comments about IUPAC, please contact, the Secretariat.
Questions regarding the website, please contact Web Help.