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Governing Board of the American Institute of Physics

Minutes of Meeting

October 29-30, 1982

The Governing Board of the American Institute of Physics met at the Sheraton-Russell Hotel in New York City on the evening of 29 October and in the Karl Taylor Compton Board Room of AIP Headquarters on 30 October 1982. For clarity in presentation with reference to the printed agenda, events recorded here are not necessarily in the same chronological order in which they occurred.

Members Present: N. F. Ramsey – Chairman, R. P. Bauman (AAPT), R.T. Beyer (ASA), P. B. Boyce (AAS), J. A. Burton (APS), R. B. Clark (AAPT), M. Dresselhaus (APS), J. P. Glusker (MAL), R. M. Grant (ex officio), W. W. Havens, Jr. (APS), W. H. Kelly (AAPT), W. H. Koch (ex officio), J. W. Layman (AAPT), D. Lazarus (APS), R. P. Madden (OSA), T. E. Madey (AVS), M. H. Mueller (ACA), J. W. Quinn (OSA), E. A. G. Shaw (ASA), J. L. Vossen, Jr. (AVS), H. F. Weaver (AAS), K. F. Wissbrun (SOR), A. E.Wright (AAPM)

Absent: K. M. Baird (OSA), M. Goldhaber (APS), R. E. Marshak (APS), R. W. Schmitt (MAL), M. Strasberg (ASA)

Nonvoting Participants: R. K. Hobbie (AAPT), T. Ingoldsby (AAPT), P. B. James (AAPT), K. Mays (AAPT), J. P. Meyer (AAPT)

Guests: H. R. Crane, Past Chairman; **R. George, Director of Sales, AZTECH; *D. W. King, King Research Inc.; *C. Lieb, Partner, Paskus, Gordon & Hyman

AIP Staff: H. W. Koch, Director; R. M. Grant, Secretary; G. F. Gilbert, Treasurer; R. H. Marks, Associate Director for Publishing; L. Slack, Associate Director for Educational Services; R. P. Andersen, Manager, Publishing II Branch; R. Lerner, Manager, Marketing Division; L. T. Merrill, Assistant to the Director; N. A. Davis. Assistant to the Secretary

*Friday only
**Saturday only

1. Convene – Roll Call

The meeting was called to order by Chairman Ramsey at 6:40 p.m. following dinner.

2. Minutes of Governing Board Meeting of 26-27 March 1982

The minutes of the previous Governing Board meeting were presented by Slack, who was Interim Secretary during that period; he noted that minor typographical changes would be made. The minutes were approved by acclamation.

3. Report of Chairman

Ramsey said that items which would be included in his report will be covered throughout the agenda.

4. Comments on Corporate Associates Meeting at Sandia

  1. Report on Meeting, Including Advisory Committee Meeting – W. H. Kelly

    Kelly reported that the general impression was that this year's Corporate Associates meeting at Sandia had been very successful, with excellent talks and good tours. The Advisory Committee discussed the relationships of national and academic labs to the Corporate Associates and to the Institute. The Committee looked with favor on developing the principle of an affiliate category to the Corporate Associates.

  2. Plans for 1983

    Kelly reported that plans for the next meeting were discussed by the Committee. Xerox in Palo Alto has been recommended as the site. The time of appointment of the new chairman has been shifted to 1 January in order to ensure more continuity and more time for planning. The next chairman is to be Edward McIrvine of Xerox at Stamford, CT.

5. Report on Use of Physics Journals – D. W. King

Koch introduced King, noting that the Institute had used his consulting service to survey the impact of large increases in journal prices. An article giving the results of this study will be published in the October issue of Physics Today.

King noted that he had done a number of studies devoted to the physical science community in the last five years. He discussed the importance of journal literature, the relationship between scientific journals and commercial journals, and the implications of the copyright law.

King said that downplaying of the importance of journals is an idea that is over 15 years old; he feels the idea has been misrepresented and that the scientific and technical journals are the heart of the scientific community. He has found that the number of commercial journals published is growing rapidly, whereas society-published journals are remaining fairly constant in number. He thinks the long-term strategy of commercial publishers is not a good one. Scientists are using more journals other than core journals. He feels that there ultimately will be a two-tiered system of distribution: traditional bundling of articles in paper form with backup of separates in paper or electronic means. He thinks bundling is the best system for individual libraries, societies, and society as a whole, as long as there is also some system for distributing separates.

King has done two studies in the last five years for the Federal Government on the new copyright law. One of the problems in the current law is that it is trying to protect ownership of intellectual property, but at the same time is trying to set up a mechanism to compensate publishers for the value-added services they provide, such as editing, refereeing, and marketing. This is based on the premise that there will be some return to the publishers. It may be useful for libraries to be assessed a higher subscription rate, with attendent permission for them to copy all they want on a fair use basis.

6. Update on Copyright – C. Lieb

Koch introduced Charles Lieb, a senior partner in Paskus, Gordon & Hyman; he last addressed the Governing Board five years ago and gave AIP useful advice when the new copyright law was implemented.

Lieb reviewed what the five-year old copyright law does: the giving of exclusive right to publish and reproduce, with numerous exemptions. The concept of fair use (sometimes called productive use) is an escape valve from the right given to the copyright owner. Libraries are given additional exemptions, as specified. The right to copy always carries with it permission of the copyright owner. He reviewed the problems that have arisen in the last five years, particularly in the area of educational use. The most serious infringement is in the making of instant anthologies by professors.

Glusker asked if it was useful for a suit to be brought against a professor; Lieb said this has been discussed with individual professors. Damages will not be brought, but the intent is to clarify the law, which now contains many ambiguities.

A complaint has been lodged against Lockheed Dialog because of its offer to make copies available from the British Lending Library Division. Lockheed should pay through the CCC, make arrangements for the customer to pay, or state that these services are not available in the U.S.

Fair use in corporate photocopying is a limited thing, and publishers feel that the making of multiple copies by a major industrial company is a violation. He referred to two recent cases: American Cyanamid (settled out of court, with the company paying); and Squibb (now engaged in settlement talks; agreement anticipated is that they will make a record of all copies made and will have a provision defining fair use).

In discussing AIP's new policy, Lieb said he has a problem in understanding AIP’s intent to permit copying by individual researchers for their own use. He thinks the statement is ambiguous because he can't tell if the permission granted includes copying for corporate use. He also has some difficulty with the sentence on consent of AIP to reprint a portion. He thinks there is more involved in the fashioning of a policy than the immediate question of whether someone can make a reprographic copy.

Now that we are on the verge of electronic publishing, the distinction between private and other kinds of use becomes less important; what is important is the access. This should remain in the control of private publishers, otherwise they will lose control of their ability to publish.

Koch said that our concern is not the present copying which is done largely by manual means, but rather with the systems which make large numbers of copies as this will greatly affect the sale of journals. AIP's choices in the future should be made more deliberately with an awareness of the effect of such decisions.

Quinn said he found it curious that the AAP doesn't push bar coding. Lieb said it was the feeling that eventually large publishers would move away from reporting individual transactions and get into general licensing.

7. Report of Committee on Constitution and Bylaws – H. R. Crane

Crane reported that this is a continuation of the Committee that finished a revision of the Constitution, without substantive changes, in 1980. The Committee met in June 1982 to define their problems and tasks.

Crane read from his memo which is a reflection of the present thinking on these subjects and which discussed the following assignments:

  1. Examine Article IX – Society Dues. There seems to be general recognition that dues should be increased. Three arguments in favor of this idea are: 1) new challenges to the Institute, for which it needs additional income; 2) importance of stability of income; and 3) credibility. The mechanics of changing the dues could involve taking the $1.00 figure out of the Constitution and putting it into the Bylaws; the Bylaws can be changed by 2/3 vote of the entire Board. Another possibility is to state dues as a percentage of Society dues as was done up to 1967.
  2. Examine Article X – Services and Charges, which includes the Memorandum of Agreement. The idea that Societies should be treated equally needs to be emphasized. Presently, a Society or the Institute can terminate services on six months notice; he thinks the Memorandum of Agreement should provide that services cannot be terminated on such short notice.
  3. Examine Article XII – Committees. The chief question here is whether the size of the Executive Committee should be increased. His Committee agreed that since the Institute is run mainly through the Executive Committee, the emphasis should be on expertise, ability, and knowledge, with democratic representation being of secondary concern. In 1974, a custom was instituted whereby non-represented Societies can be nonvoting participants; the number of such participants has been declining. The Committee takes a conservative view on the size of the Executive Committee.

    Ramsey commented, regarding the size of the Executive Committee, that a slight increase in size would allow for both rotation and retention of strong people.

  4. Consider criteria for membership in AIP. The Constitution presently states that for a Society to be acceptable, 25% of its membership should already be members of another Society.

Crane, in response to Koch's question, said that a report would probably be ready in March of 1983.

(The meeting recessed at 9:00 p.m., followed by a reception and informal discussion. It resumed on Saturday at 9:00 a.m.)

8. Function Planning in 1982

  1. Relation to Governing Board and Advisory Committee Meetings
  2. Coverage in Agenda
  3. Present Functions; Proposed Function on Information Services
  4. Development Plan for Educational Services in 1983

    Koch briefly reviewed the agenda, planning and its relation to the functions of the Institute, as covered in the Function Planning volumes. The purpose of the large amounts of information disseminated for the meeting is to inform the Board of all the materials on which decisions are based and their relation to the agenda. It is planned to spend most of the time on action items but there will be opportunities to get full information on any matters of interest.

    The activities of the Institute have been defined in seven specific functions; Management is proposing an eighth function relating to secondary services, which are actually information services. Work is progressing on a five-year plan for educational services, to be published next year.

9. Publishing Activities – Functions I and II

  1. Highlights

    1. Appointment of New Editors – Physics of Fluids. Jan. 1982; Journal of Chemical Physics, Jan. 1983

      Marks reported that Ribe and Acrivos are the new editors of Physics of Fluids. Stout is retiring as editor of Journal of Chemical Physics, but will continue to serve in a consulting capacity. The new editors will be John Light and Don Levy, both of whom are at the University of Chicago.

    2. Computer Composition

      1. ATEX Release III composing 30,000 pages per year
        1. Additional CPU and terminals can now be ordered from ATEX.
        2. Additional journals can be composed as ATEX capacity increases.

      Marks reported that the problems of the last year with the ATEX system have now been ironed out and the equipment has been paid for. JCP is one of the last journals being done by typewriter and it will be brought in-house for photocomposition.

      1. UNIX system now composing all of Physical Review, RMP, and BAPS
        1. System improvements by APS continue to be made, such as the two-column format for Videocomp output to decrease the amount of photographic paper used and thereby reduce the operating cost.

      Marks noted that improvements continue to be made in the UNIX system to increase its efficiency. He introduced Robert P. Andersen, the new Branch Manager of Publishing II Branch. who is responsible for all APS journal production including all graphic arts and the development of phototypesetting facilities.

  2. Advisory Committee Meetings

    1. Committee on Publishing Policy – Meetings of 11 June 1982 and 8 October 1982
    2. and
    3. Subcommittee on Electronic Publishing – 6 August 1982 Meeting

      Koch noted the minutes of the June meeting and the agenda of the October meeting of the Committee on Publishing Policy (Attachment G) and the minutes of the August meeting of the Subcommittee on Electronic Publishing (Attachment J).

    4. Committee to Review JAP, APL

      Koch noted the tradition of having an outside review committee review the six AIP archival journals at periodic intervals. The report of the JAP/APL Review Committee, with the dissenting opinion of Stout, is contained in Attachment L.

  3. Discussion and Action Items

    1. Approval for New Function on Information Services

      Koch referred to the category known as secondary services, which includes all activities beyond publishing services. On recommendation from Management, the Executive Committee recommends formal approval of the change in title for this Function to "Information Services" (Agenda Attachment H).

      Wright asked about the matter of membership directories, as referred to in Attachment H. Koch answered that Management envisions a need in the next few years for online service through us or by agreement with outside services, and the Societies need to consider whether they want to put their membership lists online.

      Clark wondered about online production of the Directories which are done by SPS. Koch said that discussions are underway regarding the preparation of these; with the new computer, material will be very accessible.

      The following action was approved, on the basis of the Executive Committee recommendation, with one abstension.

      MOVED that a new Function VIII (heretofore referred to as Secondary Services) be approved: The Production and Distribution of Information Services that are cost effective and of high quality.

    2. Proposed Contract with FIZ

      Marks said there is no action proposed on this as yet. Our present contract involves selling abstracts and indexing information which is produced as a byproduct of the AIP and Member Society journals. Management is looking for a contract which gives rights to market a comprehensive tape, now being produced by the Germans, in the U. S. and Europe. The Germans want to have the tape only on their computer in Karlsruhe and have us market it here by telephone lines; however, this is not a practical business approach. We want to see it mounted on Lockheed, BRS, and other systems to make it widely available. He thinks that FIZ doesn't understand the marketing of tape information in the U.S. Marks feels that once FIZ realizes that the easy way to market this is through the established system already set up, they will concur. Boyce asked why Lockheed would want this if they have Inspec. Marks replied that ours would be more current, and the price is competitive.

      Quinn questioned the wording of Items 5 and 7 of the draft proposal (Attachment M, page 2) and asked for clarification. Marks said the abstracts are owned by AIP or by the Member Society that copyrights the material, although AIP produces the actual tape; this will be clarified in the text. Koch added that before consummating a final deal, each Society will be contacted on their willingness to make their journals available. If any Society doesn't want an exclusive arrangement, the royalty payment will be adjusted accordingly, and the Society would have a non-exclusive arrangement and proceed from there. The exclusive arrangement discussed in the draft proposal applies only to AIP.

      Madey asked how the royalties would be handled. Marks replied that the combined tape would contain about 25% AIP material. The royalty would be equal to 20% of this 25% (or 5% of the total). The royalties would be divided among the Society journals on the basis of the number of articles.

    3. Proposed Contract with North-Holland

      Marks noted the draft letter to P. Bolman of North-Holland (Attachment N). They are impressed by the "heads" done by AIP (title, author, abstracting, and indexing information, with software developed for the Datapoint system) and would like to purchase this software from AIP. The advantages of this are that it would reduce the costs of the combined Physics Briefs tape and would help provide information to the physics community at a somewhat lower price. It would be a non-exclusive arrangement.

      Havens said he thinks commercial publishers have been taking advantage of the physics community and their journals are very high-priced; any help we give them is to our detriment. Koch said these arguments would be valid if they applied to the previous North-Holland proposal for marketing their journal, which was opposed. He thinks this proposal would help the physics community more than it would help North-Holland. We would make clear that they would be responsible for any modifications which must be made; North-Holland also would be responsible for maintaining the software.

      Ramsey suggested that the draft letter, with modifications incorporated, should go to the Executive Committee. Dresselhaus said she felt uncomfortable about voting on this as she doesn't know what the revised wording will be. Ramsey said that the Executive Committee tries to carry out the wishes of the Governing Board. Havens said the only solution he can see is to refer it to the Executive Committee, delegating to them the approval or disapproval of the proposition, taking into consideration the feelings of the Board.

      The following motion was made by Havens, seconded by Clark and carried, with one abstension.

      MOVED that the Governing Board delegate to the Executive Committee the decision on the proposal for sale of Datapoint software to North-Holland Publishing Co., taking into account the feelings of the Board.

      Marks pointed out that this technology does not reflect the most recent developments as far as AIP is concerned and does not involve any redesign of the software on the part of AIP.

      Following discussion on the extent and length of commitment, Ramsey suggested a straw vote to convey to the Executive Committee the view of the Board that the letter should be clear and should be specific in stating that this is a one-shot thing for the major items involved, clear both to the purchaser and to the Board. This was carried, with two abstensions.

    4. Proposed Item on Society Dues Bill to Justify Second Class Mailing of Physics Today

      Marks noted Attachment O, a copy of a letter from Grant to Member Society Secretaries concerning a proposed statement to go on dues bills stating that $1.00 of the dues is allocated for Physics Today. The Post Office requires this before they will consider our application for second class mailing privileges.

      The following motion was made by Burton, seconded by Bauman, and carried, with one abstension.

      MOVED that the Governing Board recommend to the Member Societies that they add to their dues bills the statement that $1.00 of the dues is for Physics Today.

      The matter of the specific allocation of $1.00 to Physics Today as income was discussed. Wright thought we should not pin this down; however, Gilbert said that if this is not done, he will have a problem with the auditor. Beyer said he will support this idea as an essential action, although the ASA membership will argue against this stated allocation.

      The following motion was made by Lazarus, seconded by Kelly, and, following considerable discussion, unanimously carried.

      MOVED that, effective 1 January 1983, the $1.00 member assessment charge collected from the Member Societies be credited to Physics Today as income.

    5. Recommendation to Subdivide Journal of Applied Physics

      Koch discussed the background of this topic, noting that the report (Attachment L) had been a long time in preparation. Just before it was distributed, Stout's dissenting letter was received. It was decided not to withhold the report, but to accompany it with Stout's letter. Koch pointed out that before the journal is subdivided, the Committee on Publishing Policy would thoroughly discuss it and it would go to the Executive Committee and the Governing Board.

10. Educational Services Activities – Functions V-VII

  1. Highlights

    Slack briefly reviewed the activities covered under Functions V through VII. He noted the retirement of Likely and the appointment of the new Manager of the Division of Public Information, David Kalson. Over $121,500 has been collected for our part of the project on the Study of Solid State Physics, from NSF and DOE grants and corporate contributions. Total international collections to date are between $4 and $5 million. The final compilation of this study will be published by Oxford University Press. We have finished the production of the TV shorts covered under the NSF grants; they have been sent to 100 TV stations. The 12th radio recording has been distributed; these recordings go to 67 commercial stations and over 360 public broadcasting stations.

    Copies of the Manpower Statistics Division's recently published report, "Society Membership 1981 Profile; An Expanded View," were distributed to the Governing Board as Attachment Y.

  2. Advisory Committee Meetings

    1. Advisory Committee on Physics Today – 30 September 1982 Meeting

      One negative comment from this meeting concerned the lateness of PT. An internal staff meeting was held on this; they are hoping to be back on schedule by December. Boyce asked about ads for which jobs have expired by the time an issue comes out. Marks said there is always the possibility of delay. Shaw said that in a recent search for candidates at the NRC, the greatest number of qualified applicants came from responses to PT ads.

    2. Committee on Public Education and Information – 15 September 1982 Meeting
    3. and
    4. Advisory Committee on Manpower – 21 October 1982 Meeting

      These were not discussed.

  3. Discussion and Action Items

    1. Application of IAMP and AMS as Affiliated Societies

      Koch reported that AIP had not yet received the letter of application from AMS, although he had discussed it with the Executive Director.

      The International Association of Mathematical Physicists has applied for affiliate status (Attachment p). Koch noted that the procedure for admittance in this category is routine; the Institute does determine that they are an active organization. The unusual thing here is that this is an international association. In reponse to Lazarus' question, Koch said that AIP gains, through affiliated societies, a wider distribution of physics journals. Lazarus asked if any affiliated societies give us member rates; Koch said the American Chemical Society does, and perhaps AIP might better inform our members of this fact. The Executive Committee has recommended admission of the IAMP.

      On recommendation from the Executive Committee, the following was carried, with two negative votes.

      APPROVED the application of the International Association of Mathematical Physicists as an Affiliated Society of AIP.

    2. Development of Federal and Academic Affiliates to Corporate Associates Program

      Koch reported that the Executive Committee felt this proposal should go to the Advisory Committee on Corporate Associates before being brought to the Governing Board. He noted that we have tried for a number of years to get national labs to become members, and the recent interest of the NBS in hosting a Corporate Associates meeting prompted him to propose creating another category which would be suitable for such an organization. Ramsey added that the Executive Committee had recommended that the Governing Board invite the Committee on Corporate Associates to come up with a specific proposal.

      Bauman suggested that for this category dues be encouraged, although they would not be required. Ramsey said this could be passed on to the Committee for consideration.

      Clark said that one possibly negative thought is that the Corporate Associates meeting is becoming more popular and it might be increasingly difficult to find a suitable location with more attendees. Koch said a criteria might be provided for limiting attendance at meetings to members. Ramsey thought it should be a place where corporate people dominate.

      Ramsey said that the consensus seemed to be that there would be no objection, and called for a vote. It was carried, with one negative vote and one abstension.

    3. Development Plan for Educational Services by Summer 1983

      Koch, noting relevant materials in Attachments X, Y and Z, proposed the need for a five-year plan for Educational Services, comparable to the five-year plan for Publishing. These presently include manpower, placement, history, and Physics Today. The present budget of $1.4 million is obtained largely from AIP-owned journals. It is expected that more will be needed for future programs, thus the need for a plan, which will be submitted to the Governing Board for approval.

      He noted several reasons, including the proposed NAS study, for the importance of such a plan. The internal review of this area is due by next summer. Slack, noting Attachment I, reported on the study now in progress. The committee, chaired by Dion Shea, has met three times. As these topics address problems of the physics community at large, it is less a staff-oriented activity; several of the committee members are not staff.

      Slack said that as activities develop, new funding will have to be found. The plan will represent a consensus that these activities are important, thus input is desired from various sources.

      Clark asked if an effort would be made to consider the financial implications of any additional programs. Slack said that a staff tag and a price tag has to be attached to any ideas. Ramsey noted that such figure were in the 1982 Function Planning volumes.

    4. Suggestions for Washington Office

      Ramsey was asked by Koch to speak on this matter as he has been much involved in the discussions. There had been in years past a Washington, DC office. The idea comes up often but people often back away, as no one wants one person speaking for the entire physics community. A basic need is to alert and inform Society members when their input is needed for pending actions. Discussions at the Woods Hole meeting yielded both the feeling that there was a need for one person to expedite information and the possibility of discussions with APS on some sharing of space and personnel in DC. Neal Lane, upcoming Chairman of the APS Committee POPA, is favorable to this idea. The Executive Committee has authorized an expenditure for this purpose, and Ramsey’s impression is that this is a real opportunity for an experiment.

      Clark asked what the advantage of having a person in the DC area rather than in New York who would be scanning information. Boyce answered that day-to-day contact is very important. A mechanism for getting information back to Society members as quickly as possible is essential.

      Burton said the plans will go to the APS Council next week. Robert Park will be on sabbatical from the University of Maryland next year and is willing to function in this capacity for a one-year experimental period. Valuable contributions from AIP could be in the area of public relations, such as a newsletter or a page in PT. Ramsey noted that the purpose of AIP participation would be to notify societies other than APS of current matters.

      The following motion was made by Bauman, seconded by Kelly, and unanimously carried.

      MOVED that the Governing Board encourage negotiations by AIP in this Washington office venture with APS.

11. Distribution and Marketing Activities – Function III

  1. Highlights

    1. Total 1982 Subscriptions – 258,121
    2. Subscription Decreases Small in Spite of 60% Increase in Sub Prices from 1982 to 1982

      Marks noted that there has been no large decrease in subscriptions despite the large increase in rates.

    3. Increased Marketing Efforts Involving Direct Mail, Catalogs, Advertisements.

      Marks mentioned the increasing sales of the Vade Mecum volume. 5000 were run, and we may have to go back on press. Marketing efforts have increased with the new publications which are being released.

    4. 1,425 Pages of Advertising with Gross Income of $1,525,000 (estimated)

      Marks said these figures include not only ads in PT, but also Medical Physics, the Journal of Vacuum Science and Technology, and a small amount in the program of the ASA.

  2. Advisory Committee Meetings

    1. ad hoc Committee on Computer Needs – 15 June 1982 Meeting
    2. and
    3. Committee on Society Services – 20 September 1982 Meeting

      Koch noted the minutes of these meetings, contained in Attachments G and Q, respectively.

  3. Discussion and Action Items

    1. Memo on Society Office Automation and AIP's New Computer

      Koch called attention to Attachment R on this topic. Although AIP is not structured to give specific advice on the operation of individual Societies, he thinks it may be increasingly involved in this way and will be eager to provide advice if needed.

      Regarding the new computer, AIP only will do input of bulk processing for at least the first year, in order to avoid major conversion problems. It was discussed and agreed upon in the Executive Committee that we would receive the source documents and process them. He clarified, in response to Quinn's question, that this refers to the volume (production) processing of billing. Quinn said that he does not want to duplicate key strokes, which adds to errors. AIP expects that Societies will do some new member input if they desire, as this is of relatively small volume.

    2. Description of AIP's New Subscription System – R. George

      Koch introduced Ron George, who has been with AZTECH since 1970, and is director of sales. He mentioned that AZTECH was formed in 1968 and specialized in data processing for over 190 non-profit corporations.

      George's talk reviewed the following:

      1. Description of the system as planned. The system files contain three major elements: 1) the base record for the system; 2) the file, which contains (a) a record for each service a member or subscriber receives; (b) a record for each membership a person holds; (c) any ancillary activities and records specific to each Member Society; 3) the product file: this is flexible and can be added to as necessary. For purposes of this file, AIP is entered as a component (or tenth) Society.

      2. Capabilities and major improvements. These include the following: 1) Online direct access system for non-technical users. The more processing power in the hands of the users, the better the system will be. It will give faster turnaround than the present batch system, and better services and faster responses to member needs. 2) Flexibility. The system can be controlled by AIP without having to change the programs. It is user-friendly. Member Societies can have closer contact. 3) Easier training. It should not take weeks to make new employees productive.

      3. Progress report. AZTECH is now at the tail end of the conceptual stage. Within the next week they will submit the conceptual design document to the AIP staff. Processes will be reviewed and work will not proceed until each step is approved. He noted that they are now on schedule, but will be behind schedule by a couple of weeks due to discussions with AIP staff on a front end remittance processor that will speed deposits of cash to the bank and will reduce hand work involved in dues and subs payments. This will tie into a cash deposit system. It was expected and is inherent that the design will change somewhat from the original proposal. AZTECH has held meetings with the AIP staff and with the Societies, jointly and individually.

      4. Overview of problems that have arisen. As initially proposed, AZTECH did not consider that the Member Societies would input the bulk of their data at first. This would be a disaster and make it very difficult to implement the new system. The system is designed to give the Societies the ability to do whatever they want to do, after the initial period. He thinks that AIP's present handling of transactions is very good and well-controlled, and that leaving the majority of this kind of processing in Woodbury would serve the Societies well. He feels it would be good for Member Societies to control and enter new members, to respond to members' problems and address changes, and to control output of their products.

      Shaw said that the ASA wants to acquire a word processor which will be compatible with the AIP computer; is this feasible? George said that Data General makes a small desktop mini-computer which they and he use for their word processing. When connected to a telephone line, it works in the same way as an MV8000 terminal does. The MV8000 also can communicate with any CPM-based personal computer.

      Bauman asked if there is any way of correlating information within files. i.e. a person with an address change who is listed in several categories. George said there is one base record for each person; the computer will search, and advise if the person is there.

      Quinn asked what the target date will be for the system to be considered completely operational. George said that going through one billing cycle will flush out most of the problems. There is a three-tier system for testing, but fine tuning will have to be done, as no system is perfect. A consensus of the problems encountered in the first year is needed to finetune everything.

    3. Need for Information to Market Journals and Memberships – R. Lerner

      Lerner said that the Marketing Division sees great opportunities in marketing with the new system. We are in a dynamic mode, with the shift in Society memberships, and we want to make new people aware of our products. She hopes the new system will generate facts that will be helpful.

12. Fiscal Activities – Function IV

  1. Highlights

    1. Improved Usage of Bankers Trust Dataphone, Express Service, and Direct Wire Transfers

      Gilbert reported that the Dataphone, which has been used for a daily printout of the balance for use in daily investments, now has an expanded use. We get the bank balance every morning at 9:00 and must make a judgment on investments by 10:15 a.m. After making investments, we receive a call from the bank at noon, giving the amount of outstanding checks. This results in a higher investment income, particularly for the months of November and December when deposits are high. Another use of this service is for paying Society dues and subscription collections and short term investment income on Society money to Societies. This can be paid by direct wire transfers into Society accounts without bank involvement. The Societies are notified by phone and followup paper work. The auditors have approved this procedure. We can also send money to the IOP by direct wire transfer.

    2. Timely Financial Statements in 1982
    3. and
    4. Accounts Maintained for 9 Societies, 60 Publications, 59 Organizational Units, 10 Grants and Contracts, and 7 Special Projects

      Gilbert reported that the monthly statements are on time. We have a complete general ledger as of the end of September. The third quarter prorations are now being calculated.

      Quinn asked for the projected date for the 31 December statements and for the audit. Gilbert said that Touche Ross is coming in mid-November and dates will be available after meeting with them. They will do a preliminary audit in December again this year.

  2. Advisory Committee Meetings

    1. Advisory Committee on Fiscal Policy – 29 August 1982 Meeting

      Clark distributed the report of this meeting; there were no comments or questions.

    2. Audit Committee Meeting – 29 October 1982 Meeting – H. F. Weaver

      Weaver reported on the meeting held the previous day, in which the Committee met with members of the Touche Ross staff and Management to review the auditors’ report on the financial statement. The auditors stated that, without reservation, these documents fairly represent the financial position of the Institute. The Committee congratulates Management on the progress in developing better accounting procedures and encourages them to maintain this progress. The Committee noted that the Institute has made a good turnaround financially and would suggest that, with the surplus funds now being shown, plans should be made for reserve funds. They would like the Governing Board and Management to consider this. They feel comparison between years, in the financial statements, is helpful.

      In their letter to Management, Touche Ross noted three things needing improvement:

      1. Calculation of cost allocation. Time could be saved if this could be computerized.
      2. Accounts of various restricted funds. These have not been maintained on a regular basis, but only once a year. The Committee is glad to hear this is being changed.
      3. Electronic data processing. The Institute does not maintain a standards manual for this. They should have one, and a disaster plan should be developed; they don’t have software or destruction or business-interruption insurance. The Committee agreed that the preparation of a manual, and insurance for the new system, is essential, but not worthwhile for the present system.

      Weaver presented their first two recommendations to the Governing Board as motions, as follows:

      MOVED that the audit for 1981, as prepared by Touche Ross, be accepted by the Governing Board.

      This was carried unanimously.

      MOVED that Touche Ross be retained for audit of the accounts for 1982, the fee to be negotiated by Management.

      This was carried unanimously.

      Their third recommendation was that a standards manual be prepared and that proper security and protection of a computerized accounting system be considered as a part of putting the system into operation in 1983 and that an additional staff member be employed if necessary to achieve this.

      Gilbert explained that a byproduct of the purchase of subscription fulfillment software and accounting software will be documented manuals of the systems. George added that he has seen up-to-date procedures manuals for the present subscription fulfillment system, and was surprised that Touche Ross did not know of these. Gilbert said that these were not considered adequate by Touche Ross. In reference to business interruption insurance, he asked Touche Ross last year to suggest an insurance company but they could not. He tried to locate such a company but could not. This year Gilbert asked them for names of customers who have this type of insurance.

  3. Discussion and Action Items

    1. Balance Sheet and Statement of Revenue Expense for Six Months Ended 30 June 1982

      Gilbert reviewed the figures, as contained in Attachment BB (copy attached herewith). He noted that at the end of June we had a total in current assets of $6.4 million in terms of cash and cash equivalents, which has mostly to do with deferred subscription income. Total current assets are $8.7 million. This ratio of 4 to 1 is a very healthy relationship in case of need to borrow money.

      The Statement of Revenue and Expense shows the budget 1982 and the six months figure. It does not show the Soviet journal income for unpublished issues, as they are behind.

      He noted the net investment income (after paying the Societies their investment income). The great increase this year will help establish the reserves that we need. The excess of revenue over expense is $631,500 to $770.208. We have $1 million in terms of accumulated income. When we have audited figures for the calendar year we will ask the board for a motion to distribute the accumulated income among the reserves. The Governing Board had recommended that this go into reserves, mainly publishing reserves.

      This year, in addition to preparing an expense budget, we will prepare a capital budget against which we will get approvals for capital expenditures. Clark asked what capital expenditures are still pending for 1982. Gilbert said we owe ATEX approximately $180.000, and payments are due on AZTECH.

      Burton asked when transfer to the reserve funds would happen. Gilbert said it would probably be done at the March meeting, as soon as we have figures from the auditors.

    2. Purchase of Accounting System Software

      Marks reported that the one remaining job for the new computer will be computerization of the accounting functions now on the Univac, plus other accounting functions including prorations. Packages have been explored with Data General. It is anticipated that funds for this will be part of the capital funds. It appears that these operations will be in place, making it possible to completely phase out the Univac by the end of the contract (end of 1983).

    3. Establishment of Committee on Finances

      Clark read a proposed motion drafted by the Committee on Fiscal Policy that the Governing Board create a standing advisory Committee on Finances, with specific responsibilities to advise the board on reserve fund policies, investments, and fund raising campaigns; he questioned the title. The Committee on Fiscal Policy felt that since its composition is Society Treasurers, there is a need for an additional committee of specialists in the above-mentioned areas. The Committee underlined the need for resetting policy on reserves, both general and capital.

      Bauman asked if this Committee would advise the Board or the staff; Clark clarified that it would advise the Board. Ramsey noted that the Executive Committee had discussed and recommended this, calling it a Committee on Finances.

      The following motion, referred from the Committee on Fiscal Policy, and presented by Clark, was carried unanimously.

      MOVED that the Governing Board create a standing advisory committee with specific responsibilities to advise the Board on reserve fund policies, investments, and fund raising campaigns.

      An amendment to the motion (passed before the motion) called by Ramsey, stating the name as given above, was carried with one no vote. Burton stated that this should be an important, active committee which makes recommendations to the Executive Committee and the Governing Board.

      Gilbert clarified the difference between a finance committee and this type of committee; his understanding was that this would be a higher level committee, not dealing with operations, but with responsibilities such as fund raising. Clark confirmed that this was the Committee's intention: to give advice on these matters and develop policies for such programs, not to make recommendations on expenditures.

      Glusker asked if there is a well-defined charge to the committee. Gilbert said this comes from the Committee on Fiscal Policy; Clark reread their recommendation.

    4. Workshop on Prorations

      Gilbert noted Recommendation 7 of the report of the Committee on Fiscal Policy, which requested that AIP prepare a survey of the current methods for the calculation of AIP prorations for distribution to treasurers and executive officers of the Member Societies and arrange for a workshop on the subject, if desired. The Societies would be invited to send representatives at Society expense. Clark said this was designed to give the staff an opportunity to explain the written information on the 26 prorations, which are complex and need explanation and to see if representatives have suggestions for changes. It was clarified that this referred to AIP prorations only, not Society prorations.

    5. Management and Other Services for Societies

      Koch reported that the AIP staff will consult the Committee on Society Services to see if any management or other services can be improved or added.

13. Other Business

  1. Other Business – Dues and Subscription Payments by Nonresidents

    The following motion was read and explained by Quinn, seconded by Boyce, and unanimously carried.

    MOVED that the Governing Board of AIP direct the staff of the Institute to make arrangements for payment of 1984 dues and member subscriptions of nonresidents of the U.S.A. by internationally recognized credit card; be it further moved that the credit card charges incurred by AIP in these collections be directly passed to AIP and the Member Societies as appropriate and that the concurrence of the Member Societies be secured for this additional charge.

    Quinn said that the present requirement that all bills be paid in U.S. dollars is a great inconvenience and very difficult for foreign members; this move could encourage more foreign members. Gilbert said he sees no problem with this change and had concurred with Quinn. The Societies can do it or not, since the billing is individual. It can be built into the AZTECH system; it will be implemented for 1984 payments.

    Burton commented that APS had looked into this previously and found that the amount of money involved is not insignificant. If this is adopted for AIP journals, Societies will probably have to go to this procedure. Quinn thought it should substantially reduce the cost of handling funds.

    Gilbert noted that the engineering societies are moving toward credit card payment for domestic payments.

    The following motion was made by Burton, seconded by Kelly, and passed with three opposing votes, and one abstension.

    MOVED that the AIP staff look into the implications of credit card billing for nonresident dues and member subscriptions and information be brought to the next Governing Board meeting with dollar figures and ways to implement it on dues billing.

  2. Future Governing Board Meetings

    Proposed meeting dates were discussed. The projected 25-26 March 1982 dates for the Governing Board meeting present a problem for APS as their California meeting is in that week; 11-12 March were suggested and decided upon. There were no objections to coupling the Corporate Associates meeting with the Governing Board meeting in October.

The meeting recessed for executive session at 3:00 p.m.

14. Executive Session

Reported in official minutes.

15. Adjournment

The meeting was adjourned at 3:35 p.m.