SHRM WASHINGTON STATE COUNCILMINUTES

January 31, 2014

Radisson Hotel, Seattle WA

7:30 a.m. to 3:00 p.m.

Welcome, Networking and Icebreaker: (See roster below)

Ruth welcomed everyone to the meeting and thanked them for attending. She reminded everyone the ability to conference in by phone wouldn’t be available until after later as there is a 3 hour limit now on conference calling. Ruth shared SHRM had conducted a survey and found that those who participate in conference calls indicated that after 3 hours they aren’t really participating in a meaningful manner and tend to slide out or start multitasking.

Ruth next asked everyone to introduce themselves and tell their name, 2014 position and the chapter they are from. She also shared there were two boxes full of SHRM swag and encouraged everyone to please take as much as they wanted back to their chapters.

2014 Budget Review: (Pam Gibson and Ruth Alstadt)

Pam shared that the transition for the bank account still hasn’t been completed. She noted that we still haven’t been able to get her and Ruth as signers on the account yet. She explained that Christine has been working to help get this completed and thanked her for all of the help she has provided in getting it all figured out.

Pam reported the WSC cash picture is healthy. Due to the incomplete transition of the position and not being signers on the account yet, she has been unable to complete the bookkeeping numbers. She further explained she would only be providing a high level overview of the Council’s finances.

Pam explained she has been working with the Accountant so that we are current on everything and will be working to ensure our taxes and 1099 forms are all filed accurately and on time. She also noted the 2014 budget has not changed since the last meeting when it was proposed to the Council and she would like to see it reviewed and voted on at this meeting so we can start moving forward.

Pam explained that overall the net income for 2013 is good. The Budgeted income for 2013 was $99,730 and our actual income was $148,995. Our net income was budgeted at ($5,255) and our actual was $39,992 which put us ahead by almost 40k which is really good. Our cash balance for 1/01/2013 at the start was $93,594, 12/31/2013 at the end was $133,585 and for 1/29/2014 at present is $130,445. She did explain that the cash picture is slightly distorted due to pending deposits and disbursements which haven’t been completed due to not being a signer on the account as of yet.

Employment law registrations far exceeded our budgeted amount. The budgeted amount was $76,625 and the actual was $122,723 which was a 162% increase. This is very good especially given the fact it was the first year we went out on our own without Dorsey and we were conservative due to the fact we didn’t know what the registration would be or how many would be attending. Pam noted the sponsorships for the conference exceeded the Council’s expectations as well. The budgeted amount was 8k and the actual came to 11k. Overall, our revenue was almost 50% more than expected. This is excellent and we appear to be on track to do just as well if not better for 2014’s Employment Law conference.

Pam next reviewed the 2013 expenses. Anne and Ruth noted the goal had been to over predict expenses and under predict income. Pam then explained the actual expenses were more than had been budgeted for. The areas where expenses were more than budgeted amount were in the following areas:

  • Admin/Other
  • Charitable Donations
  • Day on the Hill
  • Director’s Meetings

Anne explained the reason for the overage in the Director’s Meeting line item was due to the fact there was not money budgeted for both director and director-elect to both attend the 2013 SHRM annual conference. So this line item was doubled for the 2014 budget. Anne explained that allowing for both the Director and Director-elect to attend is a good idea especially if the Director is unable to attend for any reason, there will still be representation from the Council but it is also a great opportunity for the Director-elect to meet people and shadow the Director to learn their upcoming role. Pam noted she would like to add some footnotes to the budget which would have some history and documentation for the amounts and reasons for budgeted amounts which will allow for continuity as well.

Pam then noted the Council meetings are still showing about 2k outstanding. This is for the face to face meetings accounting for the reimbursements and the facility to hold the meetings. Typically each face to face meeting runs about 2k or higher. Pam explained we should be on target to meet the budgeted amount though so that looks good. Until she is able to access the account, she is only able to ascertain the aggregate numbers.

Next she explained the 2014 budget is actually 10% below the 2013 budget. However, there are plenty of variables that can be trimmed if the revenue looks in jeopardy. Ruth added that the 2014 budget is NOT a balanced budget. There is a small variance of about 2k which is not that bad. Ruth had talked with Pam about having an unbalanced budget and if she would be comfortable dealing with the variance because she would like to have the budget voted on in today’s meeting. Pam shared that she is not uncomfortable dealing with the variance or having an unbalanced budget. Ruth then explained that we could still end up being on target and having it balance but it will depend on the income that is brought in from the 2014 Employment Law conference since this is our main revenue stream.

Pam shared the registrations for the Employment Law Conference are still coming in. It appears that we will be on track to have the same attendance as last year and hopefully more. Pam will be working with Andrea, the conference planner, to get more details and determine if we should segregate the conference in our budget since it would make more sense, but she will look at the numbers and information and then make a recommendation. Pam did explain it really is the Employment Law conference that appears to be the driving force for the budget with regard to the revenue. Colleen shared they are trying to get sponsors lined up for not only the conference but also for any other events the Council holds and also for our meetings. Theresa then shared that Julie Jones had been successful in securing a sponsor this year for the entire Day on the Hill event so the amount that has been budgeted for that will not have to be used. The sponsorship will offset those costs.

Anne reminded everyone that the face to face meetings cost about 2k each and that had been part of why she eliminated one of the face to face meetings in 2013 to allow more money for the Leadership Conference line item. Ruth explained she had budgeted for four (4) face to face meetings and also is hoping to get a sponsor or two to assist however, she felt it was important to have the four (4) meetings since that was what the chapter presidents had shared they would like to see. Colleen then shared she had taken a survey to determine if moving the annual December planning meeting to January would be better and the answers came back but were all over the map. Some wanted to continue to have it in December and others wanted to move it to January. Colleen explained she made the decision to keep the annual strategic planning meeting in December on the first Friday. Given the purpose of the meeting (planning for the upcoming year) it made more sense to have it in December so that won’t change.

Ruth did note that she budgeted for all four face to face meetings but is anticipating being able to get a sponsor to help out with one of them. Nancy K. asked about the 2k overage and if there was a policy in place for what should be held in reserve. Pam explained she would like to have that put in place by the 2nd quarter. Pam further noted she thought the number given (3 X Council’s operating expenses) was rather high for a non-profit but she still needs to understand what the goals and mission of the WSC are as well as speak to the accountant to get their recommendation. Since she is still unable to access the accounts she suggested this topic be tabled for further discussion and conversation in the 2nd quarter.

Ruth noted that at the December meeting, Ian had also brought up some of these same issues and we had decided to organize a committee to look at these topics. This hasn’t been established and will be something that Pam will work to get established. Anne interjected that the Council has always operated very conservatively. Several Council members then noted what an excellent job Pam has done given she doesn’t have access to the account and she just joined the Council. It was noted her presentation was very helpful and really appreciated. Pam also provided kudos to Penny for all the work she had done thus far with the budget and the things she had implemented. Pam explained that she has been looking at perhaps making some changes and she will present those at the next meeting. Juanita shared that INSHRM tries to follow the Council’s lead as far as finances and practices so they would interested in learning more about the reserve and what it should be once Pam has an opportunity to get more information.

One of the areas Pam will be exploring is payment of some of the Council’s larger expenses. Currently it appears that individuals are paying those expenses themselves and then putting in for reimbursements. She noted it would be a good idea to have those costs flow through the treasurer so it would be easier for her to determine and differentiate between what truly is a voucher versus an expense. Right now that is slightly confusing. By having everything flow through the treasurer, it can help streamline things. She will do more research on this topic and bring back recommendations/suggestions at the next meeting.

Another area she would like to look at is the reimbursements. She is going to research going to online reimbursements and payments. She explained she had done this with her local chapter and it was really nice. She also explained that Chase bank is able to literally do an account to account transfer for those who already have an account with them. Chase is different than BECU (Boeing Employee Credit Union) as BECU would cut a check and mail it to the individual. Once she researches the information and requirements, she will send it to everyone and discuss further at the next meeting.

Theresa added that along the same lines, they had previously discussed partnering with a vendor for the travel so there would be an administrator but the topic had been tabled. Theresa would like to have Pam or someone research this topic more and have more discussion on it at the next meeting. Colleen added it was a good idea because some of the meetings she will need to attend will be expensive and to have the travel handled through a vendor or through an online payment system would really ease the burden from her having to put it on her card and then wait for the reimbursement. Pam noted she will also look at being able to do a travel advance as another option to travel partner/vendor and she will get the information pulled together for presentation at the next meeting so that we can discuss it further. Pam invited suggestions and recommendations from everyone and explained she is very open to new ideas and changes and to either give her a call or email her with their ideas.

Pam then explained that she made some minor revisions to the 2014 expense report so it has been updated. She reminded everyone that the first 100 miles are exempt from reimbursement. She then noted this was interesting approach that she has not seen before. Pam shared she noticed there were two different time frames for the expense reports to be submitted. One was a 30 day and the other was a 60 day time frame and she was not certain which one was correct. Pam noted the 30 days is very aggressive and transactionally could create some issues but Pam is open to suggestions. Ruth shared that she would like to go with 90 days for now and have Pam research it further and bring a recommendation to the next meeting. Everyone was very comfortable with the 90 day time frame.

Anne explained that at the time the changes were made to exempt the first 100 miles the revenue was not very high and so all potential alternatives were reviewed. The Council had also asked the presidents to ask their local company/chapter to help with expenses first. Then if their chapter needs assistance getting representatives here to the Council meetings submit the request to their district director. Anne noted this might be a good topic for the committee to discuss and have a conversation about and then provide their recommendations.

Pam next shared some of her future considerations. She would like to see the ability for complete transparency and efficient ways to keep the Council informed. She mentioned “Drop Box” as an option the Council might want to look into. She shared her local chapter currently uses it and has found it to be very efficient and helpful in keeping all of the required and important documents for their chapter in one place and accessible for their Board members to view. She thought it would be a good idea for the Council to set up an account for transparency reasons and to store their finances. Pam also noted it wasn’t a good idea for the Council’s finances and important documents only be stored on one computer and that is why something like “Drop Box” which is Cloud based would be a good idea. Ruth quickly explained she had tasked Roshelle, Communication Director with the task of researching the different alternatives and technology “Drop Box” being included and encouraged Pam to work closely with Roshelle so that we didn’t have a bunch of different accounts and technology being used and to avoid confusion. Nancy K. shared that “Basecamp” is another really good option and their local chapter uses it and she has found it to be very helpful, versatile and user friendly.

Pam next shared the Council might want to look into “Hoot suite.” She explained it was a nice tool that could be used for social media postings and it is most often used for posting regularly scheduled events. She did share there is a cost associated with it but there is also the option for the free account, however, it does have limitations but if the chapter’s and the Council’s needs are simple, then the free account would work fine. She noted “free” is a great price.

Ruth next shared she would really like to have more Council members getting involved with our LinkedIn and Face Book pages. She encouraged everyone to join our LinkedIn group and participate in the conversations so it isn’t just her and Roshelle. Anne shared that WA State Council had trended the highest when we won the Pinnacle award but recently has tapered off. Pam shared the Council has never been on her radar until she joined but she noted she mostly tracks her local chapter. Roshelle indicated that is something she and her committee are working on as far as getting the branding updated.

Next Pam went over the 2014 expense report. Since she has created her own Drop Box account for the treasurer, she showed the Council what it looked like and then she also went and updated the expense report to reflect the new 90 days for submittal. Pam explained it is okay for everyone to complete their reimbursements via email, but remember to please bring the originals to the next face to face meetings for her to have for the files.

Chance asked about the membership budget. He was curious about the Core Leadership Area and would like to see the Council really support membership and local chapters. Ruth noted the Council did budget for scholarships for the local chapters to assist with the membership drives. She also noted there is $2500 in the account which had been increased from the 2013 budget. Chance asked if that amount was specifically set aside for chapters and membership. Ruth shared that she didn’t have the actual breakdown but suggested he reach out directly to Josh and Carol and they could discuss that with him. Ruth did share they included another 1k for the Young Professional. Ruth noted her concern is that she likes the topic and all the suggestions, however we have to pass the budget at some point and she would like to get that accomplished at this meeting. Ruth then proposed that we go ahead and pass the budget as is and if there are things that need to be added or discussed then everyone can send those recommendations and items and we can discuss later and make any amendments necessary. Mike clarified that currently thought these things have been earmarked. Ruth confirmed this was correct.