IEEE Board and Management Council
IEEE Board of Directors
Pictured from left to right:
- Back Row:
- Edward G. Perkins, Marko Delimar, Michael R. Lightner
- 4th Row:
- Theodore W. Hissey, Jose M. F. Moura, Peter A. Eckstein, David A. Hodges, David G. Green
- 3rd Row:
- Douglas N. Zuckerman, Vincenzo Piuri, James M. Howard, Ralph M. Ford, James A. Jefferies, Gustavo A. Giannattasio, Wai-Choong Wong
- 2nd Row:
- Jeffrey M. Voas, J. Keith Nelson, Cor L. Claeys, Frederick C. Mintzer, Susan K. Land, James W. Moore, Keith B. Brown, James N. Ries
- Front Row:
- Cheryl A. Warren, Peter N. Clout, Howard E. Michel, Celia L. Desmond, Peter W. Staecker, Gordon W. Day, Moshe Kam, Harold L. Flescher, Steve M. Mills, Eric Herz, E. James Prendergast
IEEE Management Council
Chris Brantley, Mary Ward-Callan, Elizabeth Davis, Anthony Durniak, Douglas Gorham, Cecelia Jankowski, Konstantinos Karachalios, Eileen M. Lach, Matthew S. Loeb, Patrick D. Mahoney, Alexander Pasik, E. James Prendergast, Thomas R. Siegert
Message from the Treasurer
The IEEE Statement of Financial Position reflects total assets of US$470.5 million and US$432.3 million at 31 December 2012 and 2011, respectively. The increase of US$38.2 million was primarily attributable to the investment gains and increase in accounts receivable due to the timing of orders placed and monies collected. IEEE total liabilities were US$197.0 million and US$186.8 million at 31 December 2012 and 2011, respectively. The increase of US$10.2 million was primarily due to deferred revenue (subscriptions, dues, and assessments), accrued pension, and amounts held on behalf of the IEEE Foundation. Overall, IEEE Net Assets increased US$28.0 million to US$273.6 million from the 2011 year-end balance of US$245.5 million.
In 2012, IEEE had total revenues of US$405.3 million, an increase of US$21.6 million, or 5.6 percent from 2011, as shown on the Statement of Activities. The increase in revenue was primarily due to the following:
- Intellectual property (IP) revenue, including society non-member subscriptions, increased US$14.7 million or 8.1 percent, partially due to increased sales of the IEEE/IET Electronic Library (IEL) and the All Societies Periodicals Package product in the amount of US$6.6 million and US$5.3 million, respectively.
- Conference event revenue increased US$7.4 million, exclusive of IP revenue from conference proceedings included above.
Investment gains in 2012 were US$33.8 million. These gains were partially offset by pension and related benefits activity other than net periodic benefit cost of US$2.7 million and an operating loss of US$3.0 million. Included in the operating loss is a US$4.6 million charge for the net periodic benefit cost related to the IEEE Amended and Restated Employees Retirement Plan.
Grant Thornton LLP, the independent auditors for IEEE, met with the IEEE Audit Committee to discuss the scope and results of the financial statement audit, IEEE’s internal accounting controls, and the quality of IEEE’s financial reporting prior to issuing the opinion on the financial statements. IEEE received an unqualified opinion from Grant Thornton LLP in the Report of Independent Auditors.
IEEE is tax exempt under Section 501(c)(3) of the Internal Revenue Code. The IEEE Foundation is a separately incorporated related organization of IEEE; accordingly, its audited financial statements are not included in the accompanying documents.
I submit these financial statements with confidence that IEEE continues to be a financially sound organization.
Report of Independent Certified Public Accountants
To the Board of Directors of
The Institute of Electrical and Electronics Engineers, Inc.:
We have audited the accompanying consolidated financial statements of The Institute of Electrical and Electronics Engineers, Inc. (a New York corporation) (the “Institute”), which comprise the consolidated statement of financial position as of December 31, 2012, and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the consolidated financial statements.
Management’s responsibility for the consolidated financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of The Institute of Electrical and Electronics Engineers, Inc. as of December 31, 2012, and the changes in their net assets and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
The consolidated financial statements of The Institute of Electrical and Electronics Engineers, Inc. as of and for the year ended December 31, 2011 were audited by other auditors. Those auditors expressed an unqualified opinion on those 2011 consolidated financial statements in their report dated June 22, 2012.
June 21, 2013
Download the Financials
Download Full 2012 IEEE Annual Report Financials (PDF, 5.3MB)