The IEEE Statement of Financial Position reflects total assets of US$436.2 million and US$438.4 million at 31 December 2011 and 2010, respectively. The slight decrease of US$2.2 million is primarily due to the investment loss offset by an increase in capitalized equipment related to IEEE Business Platform (IBP). While IEEE total liabilities were US$190.7 million and US$176.1 million at 31 December 2011 and 2010 respectively, the increase of US$14.6 million was primarily due to deferred income (subscriptions, dues, and assessments) and accrued pension, and other. Overall, IEEE Net Assets decreased to US$245.5 million from the 2010 year-end balance of US$262.4 million.
In 2011, IEEE had total revenues of US$383.8 million, a decrease of US$9.1 million from 2010, as shown on the Statement of Activities. The decrease in revenue was primarily due to the following:
1. Net investment revenue decreased US$28.5 million vs. 2010. The net investment loss in 2011 is being shown as a net expense in lieu of a reduction of revenue. 2. Intellectual property (IP) revenue, including society non-member subscriptions, increased US$8.5 million or 5.0%, primarily due to sales of the IEEE/IET Electronic Library (IEL), which represented US$9.7 million of the increase, partially offset by a decrease in other IP of US$1.2 million. 3. IEEE Standards Association revenue, exclusive of IP revenue from IEL and IEEE Standards Online Library included above, increased US$2.4 million. 4. IEEE Society Operations revenue increased US$2.2 million over 2010. 5. Conference event revenue increased US$1.9 million, exclusive of IP revenue from conference proceedings included above.
The operating surplus in 2011 was US$12.5 million. The operating surplus was offset by pension and related benefit expense adjustment and investment loss of US$16.5 million; the asset write-off of US$5.8 million related to the IBP project, and other net expense items of US$7.0 million that resulted in an
overall net deficit of US$16.8 million.
IEEE received an unqualified opinion from Mitchell & Titus, LLP in the Report of Independent Auditors. The independent auditors met with the IEEE Audit Committee to discuss the scope and results of their audit, their review on the adequacy of internal accounting controls, and the quality of financial reporting prior to issuing their opinion.
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 reports with confidence that IEEE continues to be a financially sound organization.