Section 6.19

CONSUMER PRICE INDEX (CPI) & DUES

CPI & Dues

1. PURPOSE AND SCOPE

  • This procedure explains the process for monitoring increases in the cost of living and consideration of its impact on Revenues.
  • The Society needs stable revenue sources in order to provide services and products to its members. When there is no appreciable annual increase in revenues, the budget becomes increasingly more sensitive to expenses. The cost of basic membership requirements increases at least at the rate of inflation. As inflation increases, so do non-discretionary allocations; the money available for member services and discretionary programs decrease proportionately.

2. IMPLEMENTATION

  •  The evaluation of the impact of inflation on Revenue should be based on the cumulative percentage change in the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers (CPI-W) a seasonally adjusted US City Average.
  • The base date for initial computation is FY1999
  • Subsequent base dates will be the first day of the calendar quarter in which an adjustment to Dues revenues occurs.
  • Dues should not be considered for adjustment more than once per 12-month period.
  • The ratio of Non Dues to Dues Revenue that appears to work for ASSE is 2:1. This ratio should be used to evaluate the budget, and should be reviewed periodically to ensure the ratio still works for ASSE.

3. PROCESS

  • The Controller monitors this CPI quarterly and advises the Finance Committee of the cumulative change. The Controller also monitors the ratio of Non Dues: Dues Revenue and advises the Finance Committee when the ratio skews more than 5% from the ideal ratio.
  • The Finance Committee shall evaluate the need for a Dues adjustment when the cumulative change is 10 percentage points or greater, or when the ratio of Non Dues:Dues Revenue is skewed more than 5% from the ideal ratio. Included in this evaluation should be an assessment of the ideal ratio and any adjustment to that ideal ratio that might be needed.
  • If Finance Committee recommends a CPI dues adjustment, the recommendation passes to the Board of Directors for approval. If the Finance Committee does not recommend a CPI Dues adjustment, the Controller and the Finance Committee continues to monitor the CPI Quarterly and shall re-evaluate the need for a Dues adjustment annually. The results of this evaluation shall be documented in the Finance Committee minutes.
  • If the Board of Directors approves the motion, it passes to the House of Delegates (HoD) for their approval.
  • The CPI dues adjustment becomes effective at the beginning of the calendar quarter following HoD’s approval.

4. NON-CPI DUES INCREASES

  • This CPI dues adjustment process is separate and different from any dues increase requested by the Finance Committee or Board of Directors for other program-related member services.

Approved By/Date:Board of Directors 06/2014

Replaces Edition Dated: 03/2008

Next Revision Due:03/17

 
 

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