COC OPERATING RULES FOR COUNCILS’ RESERVE FUND, TARGETED CARRYOVER, and FUNDING OF SCIENTIFIC CONFERENCES
FUNDING SCIENTIFIC CONFERENCES:
For the application of these rules, there are two types of scientific conferences:
- Annual or recurring AHA approved scientific conferences sponsored by councils (e.g. Hypertension Summer School etc.)
- One-time non-recurring AHA approved scientific conferences which may or may not have official council sponsorship (e.g. Discovering the Full Spectrum of Cardiovascular Disease Disparities featuring Cardiovascular Science and Healthcare Disparities and the Minorities Summit 2003)
- Each Council will be allowed to transfer an unlimited sum to the operating budget of any AHA-approved scientific conference.
- Once transferred, these funds cannot be reclaimed by the Council for other use.
- The funds will be managed by AHA conferences staff and will remain with the Council's specified recurring AHA approved conference(s).
- Funds not spent on those recurring conferences will remain with any or all of the conferences sponsored by that specific Council or carried over for the Council's recurring conferences for future years.
- If funds are given by a Council to a one-time AHA Scientific Conference and are not fully depleted, AHA meetings staff members can then apply those funds to other AHA Scientific Conferences as deemed necessary.
- Priority for use of these funds will go to one-time, non-recurring AHA Scientific Conferences, followed by the next Scientific Conference requiring funding.
Targeted Carryover – this money is set aside to allow Councils to fund specific endeavors in the near future. This account is limited to $800,000. COC will conduct annual evaluations to determine if increases are warranted and will apply inflationary percentages to the ceiling amount to allow the Councils to fund projects affected by inflationary increases in the economy.
- Funds transferred into Targeted Carryover must be designated for specific initiatives, such as:
- funding scholarships to scientific conferences or Scientific Sessions for Student/Trainee or Early Career members;
- funding other conference- or Sessions-related projects;
- funding a special marketing effort by an individual Council or by groups of Councils (i.e., to recruit specific groups to membership); or
- other short-term projects designated by a Council.
- Targeted Carryover will have an $800,000 ceiling.
- Each Council may transfer $50,000 initially into Targeted Carryover, with the potential to transfer more if the $800,000 limit has not been reached. This determination will be made once all 16 Councils have indicated the amounts they wish to transfer.
- At the end of each Fiscal Year, if the funds have not been used as specified, the Council may apply to the COC to re-designate their usage.
- COC will annually publish a list of projects funded through Targeted Carryover and the total amounts of each. It is hoped that listing these projects and their designated dollars will provide chairs with possible uses for future targeted investments.
Prohibited Usage of Targeted Carryover:
Named lectures and other awards funded through endowments (permanently restricted) and/or purpose-restricted accounts may not be funded by Council Carryover. Restricted accounts (both purpose and permanently restricted) by definition must be funded through donation by outside parties for a specific purpose. Because the source of Council Carryover is from membership dues earned, it cannot be moved to restricted accounts used for named lectures and awards.
Reserve Fund – this fund is comprised of 5% of discretionary funding. It is directly administered by COC. Possible uses include assisting Councils that end the fiscal year with a deficit, funding specific projects such as the use of a marketing consultant, etc. It is limited to $800,000.
- For FY2003-2004, this fund received $158,769 from the dues revenue of $814,594 which was recognized June 30, 2003.
- For each subsequent fiscal year, 5% of the discretionary dues income have been added to this account.
- If a council has a deficit at the end of the fiscal year, an application for funding from the Reserve Fund should be made. This application must be accompanied by a plan for financial restructuring which indicates how the Council intends to rectify the situation.
- This application must be received by June 15th to permit transfer of funds before year-end closeout of AHA accounts.