Governing Board of the American Institute of Physics
Minutes of Meeting
October 23-24, 1983
The Governing Board of the American Institute of Physics met at the Hyatt Palo Alto Hotel in Palo Alto, CA, on the evening of 23 October and 24 October 1983. 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, H. H. Barschall (APS), R. P. Bauman (AAPT), R. T. Beyer (ASA), P. B. Boyce (AAS), J. A. Burton (APS), R. B. Clark (AAPT), M. Dresselhaus (APS), L. L. Elliott (ASA), R. M. Grant (ex officio), W. W. Havens (APS), H. W. Koch (ex officio), J. W. Layman (AAPT), D. Lazarus (APS), T. E. Madey (AVS), E. C. McIrvine (MAL), M. H. Mueller (ACA), J. W. Quinn (OSA), M. Strasberg (ASA), J. L. Vossen, Jr. (AVS), J. M. Wilson (AAPT), K. F. Wissbrun (SOR), A. E. Wright (AAPM)
Members Absent: K. M. Baird (OSA), D. R. Herriott (OSA), F. B. McDonald (APS), R. W. Schmitt (MAL), H. F. Weaver (AAS)
Nonvoting Participants: F. H. Fisher (ASA), R. Marshak (APS), J. P. Meyer (AAPT)
Guests: R. Geballe (Chairman, Committee for Public Policy)
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; L. T. Merrill, Assistant to the Director; N. A. Davis, Assistant to the Secretary
1. Convene – Roll Call
The meeting was called to order by Chairman Ramsey at 6:45 p.m., following dinner.
2. Report of the Secretary
Minutes of Governing Board Meeting of 11-12 March 1983
The minutes of the previous Governing Board meeting were approved as distributed.
Society Memberships; Actions on Proposed Amendments to Constitution
Grant announced that three Societies (APS, AAPM, and AVS) would each add one additional representative to the Governing Board in 1984 as a result of increases in their membership.
Seven Societies have responded on the proposed amendments. There is one NO vote (ACA) on the proposed change in the dues structure. The votes on the increase in the size of the Executive Committee are all favorable. AVS and AAPT will vote in October and January, respectively.
3. Report of the Chairman
Ramsey said that his report items would be covered in the agenda. He noted the just-distributed report from the Committee for Public Policy which is to be discussed later in the agenda.
Resolution in Memory of H. A. Barton
Koch reported the death of H. A. Barton on 11 October. Slack said that the memorial service would be at Princeton on 24 October. He read the proposed resolution, which had been recommended by the Executive Committee for adoption by the Governing Board.
Havens moved and Vossen seconded adoption of the resolution. It was unanimously carried.
The text of the resolution is as follows:
BE IT RESOLVED:
On this 23rd day of October at the time of its meeting in Palo Alto, California, the Governing Board of the American Institute of Physics memorializes in its minutes its profound sadness and sense of loss at the death of Henry A. Barton.
The first Director of the Institute, he led its work for 26 years. He constantly held before the physics community the sense of statesmanship that led the founders to establish the Institute in 1931. He made a working force out of the vision of the good that can be accomplished for physics and the nation that can come from cooperative and united efforts of the independent societies working together. His foresight in recognizing issues and problems of significance readied the Institute to meet them successfully. His creativity and wisdom in financial matters established the firm base that characterizes the Institute still.
His sparkle and warmth are fondly remembered by all who knew him.
The Secretary is directed to incorporate this resolution in the minutes of the meeting and to convey it to Dr. Barton's family.
4. "Possible International Roles for Scientific Societies" – R. Marshak
Marshak said that APS has been considering international activities for some time. He and Joseph L. Birman (chairman of the committee on Chinese-American Cooperative Basic Research Program) had just returned from China where they negotiated a four-year agreement to bring carefully selected students in atomic, molecular, and condensed matter physics to the U.S. for one year of study.
Marshak said that the 10 scholars will be paid $12,000 per year, the money coming from several sources. APS has been in touch with Frank Press (head of NAS) concerning this program and that he is interested and supportive. The Dept. of State has officially been in favor of it.
As about 3,000 APS members have expressed interest in international activities, the International Physics Group has been formed. A meeting will be held on 3 November to develop guidelines. Koch has been invited to attend to see if there are activities which can extend to AIP. He noted that AIP assistance might come in the area of maintenance of the expensive equipment in China which they have trouble servicing.
As a result of APS representation at a Symposium on Pan-American Collaboration in Brazil in the summer of 1983, the NSF is providing $375,000 to assist Brazilian physicists.
The Trieste Center for International Physics is organizing an international conference for developing countries in conjunction with IUPAP in October 1984. There will be a session on how physics societies can help developing countries. APS has a grant from NSF to cover expenses of 10 people; Marshak suggested that AIP might want to send someone as part of the APS delegation.
Koch suggested that the Task Force on AIP-Society Relations would be an appropriate mechanism to look at our involvement, Geballe thought it would be a reasonable enterprise for the CPP to examine as well,
Bauman said that AAPT has an International Committee on Education which could overlap in these areas.
5. "Up-date on Export Controls – Possible Impacts on Meetings and Journals" – R. Park, J. Quinn, and J. Vossen
Vossen reviewed events at the 1980 AVS meeting on bubble memory technology, The organizers were notified that the conference might be in violation of export control. The organizers complied with the conditions specified by the Department of Commerce. Under pressure from the Department of State, certain conditions imposed by Commerce were relaxed prior to the meeting.
Vossen pointed out that the U. S. government position is that some U. S. equipment in the USSR and China is stolen. He noted that a scientific society does not consist of cops and censors. He questions clamping down on technology transfer, feeling that the scientific community should be a world community. Beyer said this is a new form of isolationism. Marshak said that this atmosphere is permeating many areas.
Quinn discussed problems the OSA has had, the major areas being visa controls and DOD clearance. The first time visas were denied was in 1980, to Russians, the reasons being "classified". They have had a number of problems with meetings since then, but they have a standard letter citing regulations which is sent to the Department of Commerce whenever this arises, and it seems to work for them. Quinn feels that policy development should be out in public and uniformly applied.
Park said that there is presently a mood and an obsession for secrecy in Washington. It is being fought on several fronts:
- Statutory authority (the bureaucracy enforcing this is not knowledgeable). These include the Atomic Energy Act of 1946, the Secrecy Act of 1951, the Arms Export Control Act, and the Export Administrative Act of 1979. The last, which has caused most of the recent problems, has expired, and the President has invoked emergency powers to extend the Act; 12 amendments to this Act are being considered by the Congress. There are also many amendments now up for consideration which would modify and limit the Freedom of Information Act.
- Executive orders that can be issued.
- Studies, a number of which are going on now.
- National Security Directive #84, which as proposed is breathtaking in its scope, involving lifetime censorship, limiting contacts with the media, and massive use of polygraph exams for those involved.
- The courts. This route has not yet been used, but it is always a threat.
Koch asked if there is anything positive or aggressive the Societies can do. Quinn and Park said the question is how to differentiate or draw the line between science and technology. Marshak said we need to define the difference between the benefits of basic science and technology. Vossen thought it was now impossible to separate basic research from technology. The only way to stop harassment is by court judgment.
(The meeting recessed at 9:00 p.m., followed by a reception and informal discussion, and resumed at 9:00 a.m. on 24 October.)
6. Function Planning in 1983
- Relation to Governing Board and Advisory Committee Meetings
Present Functions; Future Functional Assignments
Koch introduced the day's agenda. An enormous amount of detail is required for a one-day meeting, so the agenda is structured, as are the Function Planning volumes, by function, with three categories: Highlights, Advisory Committee reports, and Discussion items.
Dresselhaus suggested putting an executive summary in the agenda book. Elliott thought the material invaluable to Governing Board members in fulfilling their responsibilities. Clark said that one finds a trail in the black book to anything in the Function Planning volumes that one is seeking.
A straw vote was taken to determine the preference of the Governing Board for future Function Planning. Ten (10) favored the present system; five (5) the use of a looseleaf binder as suggested by Elliott; and one (1) a much condensed version.
7. Educational Service Activities – Functions V to VII
Koch noted that there are a number of committees in the educational area, which function independently of each other.
Elliott suggested adding one more educational activity: that of educating consumers (parents) so there would be more demand for science education. Koch said there is potential in the educational services area, but the problem is enormous, and we have to determine our priorities.
- Completion of First Edition of 5-year Educational Services Development Plan
- Installation of In-house Computer for Statistical Studies and Other Educational Services
- Initiation of Laser History Project and Progress on International Project on History of Solid State Physics
- Increase of Washington News Coverage in PT
- Assistance to NAS-NRC Brinkman Committee with Manpower Data
- Assembly of Society Officers Meeting in March 1983 with Focus: "Crisis in Math and Science Education"
- Issuance of Board Statements on Educational Crisis
Advisory Committee Meetings (Information)
Committee on Public Information and Education; Advisory Committee on Physics Today; Committee on Corporate Associates; Committee on Manpower; Committee on Public Policy; Committee on History of Physics; SPS Executive Committee; SPS National Council
Implementation of Educational Services Development Plan
Slack referred to Function Planning, Part 3, and noted the diversified programs of the Educational Services Branch. A staff task force plus outside advisory members was organized a year ago. The review was helpful from a staff point of view, as it highlighted problems worthy of attack. Some ideas could be immediately implemented and have been. The recommendations present a menu, with cost estimates given in appendices. He noted the following items which emerged from the study:
- the need for an Educational Services Policy Committee;
- AIP provides a number of services such as public information and placement, which in other disciplines are provided for by Member Societies. There is so much to be done that AIP and the Member Societies can't accomplish everything individually, so it is important not to duplicate efforts.
The TV effort will depend on outside funning, as it is such an expensive activity. The PT Committee has suggestions for additional efforts. The Manpower and History committees advocate the present activities in these areas as correct and basic. The Institute must explore ways of obtaining funding for these projects from government, Member Societies, and other external sources.
Dresselhaus asked where the present funding comes from. Koch explained that money comes from the AIP publishing program: the net income from AIP journals, translation journals, etc. He feels we cannot further tax the publishing program and advises supplementing the present income with either Member Society or outside funding. The current programs have a budget of $l.4 million.
Clark suggested the possibility of setting up a permanent endowment fund for outside funding, which could be built up to establish a solid base. Ramsey noted that it is necessary to have much more money in order to establish an endowment fund. McIrvine said that industry is currently moving away from endowments and looking toward direct funding with an annual review.
Quinn asked what percentage of their income do other scientific societies use to fund educational activities. Slack said the ACS educational support amounts to $10-$14 per member per year. Koch noted that dues in these societies average about $10-$15 more than those of AIP Member Societies. In AIP the Member Societies get these services from the Institute without directly supporting them.
Layman noted that these activities cross the boundaries of various Member Societies. The idea of an advisory committee is important. In addition to relying on outside funding, the Member Societies should contribute to things that will aid them.
Formation of Policy Committee on Educational Services
Koch said that this committee could be analogous to the structure of the Committee on Publishing Policy. In this way, the subcommittees could have experts, and the Society interests would be represented in the umbrella Educational Policy Committee.
The following motion was made by Havens, with the title clarified by Grant, seconded by Layman, and unanimously carried.
MOVED that an Educational Policy Committee be formed.
Madey then made the following motion, which was seconded by Wilson, and unanimously carried.
MOVED that the Governing Board accept the Educational Services Development Plan as a guide to the Educational Policy Committee.
Quinn asked whether the various existing advisory committees should now be reconstituted as subcommittees. He thought it would be premature to take this action now, but that the Educational Policy Committee could consider this and make recommendations.
Vossen suggested that the committee would need, as a minimum, the Chairs of these subcommittees. Koch suggested that the Governing Board could make suggestions to the Nominating Committee which will consider this matter.
Ramsey suggested that the Executive Committee formulate more ideas on this Committee at its December meeting.
Fund Raising for Educational Services
Koch noted that the History Division has had active fund raising, and has raised $300,000 for the Solid State history project. There is the question of whom to approach for other projects and what the ground rules should be. An overall plan is needed. He thought the Educational Policy Committee would be instrumental in this and that it would be a significant effort, with $1 million per year proposed.
Clark asked whether the Committee on Finances wasn't the group to handle fund raising; Ramsey clarified that they are presently constituted to deal with investments only. Clark wondered if the Institute needs a corresponding committee for fund raising and if such a committee shouldn't be formed now. Koch thought it would be logical to have an Educational Policy Committee formed first and have them consider how we should proceed with fund raising.
Plans for Completion of AIP-Society Relations Development Plan
Koch said that there is a need to look at the overall structure of AIP. The Executive Committee has approved the formation of a Task Force on AIP-Society Relations consisting of Koch (chair), Ramsey, Grant, with the following Society representatives: Havens, Madey, and Wright. The group met on 23 October. He itemized topics that they need to consider, as follows:
- Memorandum of Agreement. This now deals only with publishing services; this can't be a model for educational services, which are not covered here. The Constitution says that AIP supplies services at cost, but they are actually supplied at a deficit (the incremental cost only).
- Space requirements. A rental agreement is needed. Some Societies that use space at headquarters have indicated that they may need more space soon.
- Increases in computer facilities.
- Classes of members of the Institute. He noted the increase in the number of affiliated societies recently; the services that AIP can provide to them could be considered. The category of Associate Member Society could be re-considered.
Issuance of Public Statements by AIP Governing Board
- Report from Committee on Public Policy; Adoption of Guidelines
Geballe reported that the Committee on Public Policy met on 13 October. They discussed the role of the Committee; it was envisioned as playing a watchdog role. The POPA is the APS analog to this Committee. The main order of business was setting up guidelines for public statements. Their draft statement on issuance of public statements had been distributed to the Governing Board on 23 October.
Barschall raised the following point: if an item is not on the agenda, under Robert's Rule of Order, it cannot be acted upon. Geballe said that in this instance, there was an item: Report of Assembly of Society Officers. Ramsey and Grant said that it could have been taken up under Other Business. Quinn said that according to Robert’s Rules, you would need unanimous consent to act on such an item.
Bauman made the following motion, which Madey seconded. Following the discussion, Madey withdrew his second and the motion was declared invalid.
MOVED that exceptions to these guidelines may be made only by unanimous consent.
Vossen thought these guidelines very restrictive. He would interpret them to mean that no one from AIP could speak on an issue.
Lazarus said that the concern over the principle of issuing public statements came from APS. He gave background on POPA: APS is frequently called on for public statements and any APS statement is studied by POPA. An emergency statement is signed only by the president of APS. Their feeling is that public statements should be infrequent and carefully considered.
Havens thought the guidelines were reasonable, and that it is essential to say for whom you are speaking when issuing a public statement.
Wright asked for the question. Grant reviewed the wording, for clarification.
The statement, as presented by the CPP and modified by Governing Board discussions, was approved, with 17 voting YES, 3 voting NO.
The statement as adopted is given herewith.
Guidelines for the Issuance of Public Statements of the AIP Governing Board
Definition For the purpose of these Guidelines, a Public Statement of the AIP Governing Board is any statement issued in the name of the AIP Governing Board and intended for distribution to the news media or as testimony in a hearing before a public body.
The AIP Governing Board, conscious of the likelihood that a Public Statement will be taken to represent both its own views and those of its Member Societies, hereby establishes Guidelines to be followed whenever the issuance of such a Statement is proposed.
- Whenever time permits, the matter should be referred to the Committee for Public Policy.
- Whenever the AIP Governing Board is to consider a resolution taking a publicly stated position on matters such as research, education and professional welfare which are of concern to all Member Societies, it should do so only on matters that have appeared on the Agenda distributed prior to the Governing Board meeting at which the resolution is to be considered. Information about the proposed resolution should be distributed with this Agenda.
- For the adoption of a Public Statement a two-thirds majority of the full Board is required.
- Requests for issuance of Public Statements can be initiated by one or more Member Societies or by the Board itself.
- When a request for issuance of a Public Statement arises under the Agenda item of New Business, either
- the issue can be referred to the Committee for Public Policy, or
- on matters of special time urgency and importance, the Chairman may issue in his or her name a statement reflecting the Governing Board's discussion.
- Public Statements will carry, at their close, the following sentences: The American Institute of Physics is an autonomous corporation of nine leading societies in the fields of physics and astronomy. Its Governing Board consists of representatives designated by the Member Societies, two members-at-large chosen by the Board, plus the Director and Secretary of the Institute, ex officio.
Wright asked if there had been any feedback from the resolutions issued in March. Ramsey said that the Director of the NSF thought it was helpful. Koch said he was told recently that it is important for NSF to have expressions from the community; the only question about the statements was the inclusion of the specific dollar figures.
Response to National Bureau of Standards Request
Geballe said that the CPP discussed the matter of moving the NBS to the Department of Commerce. There are cogent arguments on both sides; the Committee came to the conclusion that they could not usefully issue a statement on it. Park felt that it would not be an issue until after the election.
- Report from Committee on Public Policy; Adoption of Guidelines
8. Publishing Service Activities – Functions I and II
- Highlights (Information)
- Computer Composition
- ATEX with two Release IV CPU's producing at rate of 50,000 pages per year; Journal of Chemical Physics brought in-house
- UNIX producing at rate of 38,000 pages per year
- Approval of Second Class Mailing Permit for PT
- Establishment of Committee to Review Journal of Mathematical Physics
- Computer Composition
Advisory Committee Meetings (Information)
Committee on Publishing Policy; Subcommittee on Electronic Publishing; Subcommittee on Journals; Subcommittee on Books; Publication Board; Translations Editorial Committee
Marks reported that one year ago, a five-year publishing plan was presented. The plan has held up; the journals are on schedule; the financial condition of the publishing program is good, and the turnover is low. The new committee structure has proved to be helpful.
Executive Committee Recommendation to Expand Publication Board
Marks reviewed the background for this proposal, and read the Executive Committee motion, as follows:
MOVED that the Executive Committee authorize that editors of all archival publications published by AIP and the Member Societies, excluding translation journals, be invited to attend meetings of the Publication Board as regular participants.
The action was unanimously approved.
AIP's New Book Publishing Program
A book program is now underway. The first book, a review text on astrophysics, will be out by the time of the next Governing Board meeting.
Status of National Federation of Abstracting and Indexing Services Draft Statement on Copyright
Koch discussed the importance of copyright in the changing publishing climate. Five years ago almost all publishing income came from the printed product. Chem Abstracts and Engineering Index now get as much from their computer tape service as from the printed product. He expects we will derive net income from the tape service, and we need to be sure we protect our rights and our investments by copyright. He referred to Attachment J (the NFAIS draft position statement on copyright).
In response to Quinn's question, Koch said that he felt AIP needed a statement on which a consensus could be developed among our Societies; the formulation of such a statement could be an assignment to the Committee on Publishing Policy.
Koch said he would encourage a special study on this. Our tape can make it possible for organizations to put it in a system for a fraction of what it would cost an abstracting/indexing service. Heretofore, minor changes have been made in our tape by other users to avoid copyright violations. We would encourage them to use our abstracts in tape form and to pay a royalty for them. A statement is needed to protect both party's rights.
The following motion was made by Barschall, seconded by Bauman, and carried, with one abstension.
MOVED that the Committee on Publishing Policy appoint an ad hoc committee to study the matter of a copyright statement regarding abstracts.
Cooperation with Library Community
Koch reported on a meeting held with the Council on Library Resources, to which representatives from IEEE and the ACS were invited. The group could not agree on what direction this should take. He will continue to keep the Governing Board informed on such cooperative efforts.
(The meeting recessed for lunch at 12:10 p.m. and resumed at 1:05 p.m.)
9. Distribution and Marketing Activities – Function III
- Subscription Decreases Small in Spite of Sub Price Increases of 60% in 1982 and 25% in 1983
- Total 1983 Subscriptions – 251,271
922 Pages of Advertising with Gross Income of $1,500,000 (projected 1983)
- Total Translation Journal Gross Income of $3,900,000 (projected 1983)
- Aggressive Marketing of AIP and Society Publications
- Advisory Committee Meetings (Information)
Computer Needs Committee; Committee on Society Services
Explanation of Exclusive Marketing Agreement with Kinokuniya
Marks noted the agreement recently signed with Kinokuniya (Attachment K) for exclusive distributorship of non-member subscriptions in Japan. Nonmember subscriptions usually come to AIP through an agency in Japan. Payment is taken in yen by agencies who send dollars to the U.S. Dues are also paid through the agencies. Most of the libraries now order subscriptions by seamail. Kinokuniya approached AIP with this plan, which offers airmail service to subscribers. Kinokuniya will buy the journals at the U. S. domestic rate and will package them in Japan. They will pay AIP a lump sum in November for the journals, and will pay for the Soviet journals in March.
Report on 1983 International Book Fair in Moscow
Gilbert reported that AIP always sends representatives to the Fair because of our Soviet journal program, which has a gross of $5 million and a net of $500,000. He and Lerner attended the Fair in September. The fair had a huge attendance, and it gives an opportunity to meet with international publishers on matters of mutual interest. They met with the Russian copyright agency. They also met with five Soviet publishers regarding our new book publishing program and took options on several books.
Plans for Marketing Computer Tapes
Marks said that the Physics Briefs tape will be introduced to the new Chem Abstracts system, formerly called INSTI but now renamed STN International. Under this agreement, recently signed by FIZ and Chem Abstracts, the marketing will be handled in the U. S., with expenses to be borne by FIZ. Billing will be handled by Chem Abstracts on behalf of Physics Briefs. It is hoped that this tape and its lower price will help us to compete with INSPEC.
Uses for Credit Card Billing and 800 Number
Marks reported that credit card billing has been started with American Express, Mastercard, and Visa. An 800 number has been arranged for; the first use of this will be for the Physics Vade Mecum. It can be used for single copies of any publication in this department, which he expects will be called the Publication Sales Department next year. Its use will be monitored.
Clark asked if such things as the career booklet could be ordered in this way. Marks thought not, since these are usually ordered in quantity. The best procedure for multiple copies is with a purchase order number, although the department will be flexible.
Progress on New Subscription System
Dolowich distributed a handout which showed in chart form the progress of the various aspects of the AZTECH contract. He reviewed the stages of the project; the detail design now in progress is the most difficult. In August, AZTECH said there would be a three-week delay due to out-of-scope items (these could be a new concept to the project, an item omitted from the RFP, or our non-acceptance of their work). AIP made judgments on these and authorized additional hours as needed. At that point Dolowich requested a review of the entire project. As a result, the penalty date was extended by 22 work weeks from 21 March to 30 July.
We have a good working relationship with AZTECH. Features which will be realized in the ultimate project include lower costs, especially in data processing, lower fulfillment costs, more control in the hands of the fulfillment division, remote access online capability, automatic processing of agency orders, elimination of need for lock box, utilization of NCR terminals (now ready for use), and potential for generating many types of reports.
All the Data General equipment is now installed at Woodbury. We are phasing out the Raytheon terminals. We are negotiating with Univac on phasing out of their equipment. We are preparing to process billing on the Univac and remittance on the Data General. The new subscription fulfillment files are space savers. The programming staff has been reduced from seven to three.
Dolowich noted that the staff has found software that will enable IBM Personal Computers to emulate a D200 or D400 Data General terminal, allowing one to download from Data General to these. Data General has announced two new terminals, the D210 and the D410, with prices 30% lower than the D400.
10. Fiscal Activities – Function IV
- Highlights (Information)
- Timely Financial Statements in 1983
- Accounts Maintained for 9 Societies, 61 Publications, 59 Organizational Units, 10 Grants and Contracts, and 6 Special Projects
Advisory Committee Meetings
Committee on Fiscal Policy; Audit Committee; Committee on Finances
Statement of Revenue and Expense for Six Months Ended 30 June 1983
Gilbert distributed a handout (attached herewith) giving the statement of revenue and expense for the six months ended 30 June 1983. He reviewed the revenue statement, noting that the Publishing Subscription income shown is low because the Soviet publishing program is behind. In the category of Member Society contributions, although the statement shows "0", since that time AIP has received $34,300 from APS and AAS. The Institute is doing well in investment income. We should finish the year close to budget if the Soviet program becomes more timely.
Backlog of Non-Honored Pages
The following motion was made by Lazarus, seconded by Wright, and unanimously carried.
MOVED that in light of the good financial picture of the Institute, the Governing Board recommends removing the backlog of non-honored pages for AIP archival journals, still maintaining the normal three-month delay for non-honored pages.
Audit Committee Report
Vossen, Chairman of the Audit Committee, reviewed the report of the Committee (Attachment L) and enumerated their recommendations.
Acceptance of 1982 Audit Report
Recommendation 1: The Audit Committee finds the 1982 audit to be adequate to a high level of confidence and recommend that it be accepted.
This was unanimously carried.
Recommendation 2: The Audit Committee finds that the timeliness of financial reporting by AIP management has been improved dramatically, and that these improvements are an on-going commitment of the AIP management. We recommend that AIP management be commended for their efforts in this regard and encouraged to continue their progress in this vital area.
Appointment of Auditors for 1983
Recommendation 3: The Audit Committee recommends that Touche Ross be engaged for the 1983 audit at a price to be negotiated with Touche Ross by management.
This was unanimously carried.
Recommendation to Change AIP Fiscal Year
Recommendation 4: The Audit Committee recommends that the AIP Governing Board should consider ending the fiscal year of the Institute on 30 June rather than 31 December in about 2-3 years.
Vossen explained that the present end of the calendar year is a very busy time for AIP and for auditing firms, whereas summer is much less busy. This step could equalize the financial load for the Institute, and could decrease the time for completion of the audit. However, the Committee recommends waiting until the new computer is up and running and suggested that the Governing Board consider this in two to three years. In the year of the change, there would be two audits. He noted that Touche Ross is in favor of the shift.
The following motion was made by Havens and seconded by Clark. Following extensive discussion, Wilson moved to table the motion. Madey seconded this, and the motion to table was unanimously carried.
MOVED that it be the policy of the Governing Board to instruct AIP Management to try to have the fiscal year shifted from calendar year basis (January) to 30 June, no later than 1 July 1986. (MOTION TABLED)
Quinn asked what the ramifications regarding variance statements would be for Societies that are on a calendar year. Dolowich said it would not make any difference.
Beyer asked what the policy on quoted prices would be if we switch over. Dolowich said everything would be on a fiscal year. Summer is a lighter time in terms of workload for the staff, as we are geared to the fulfillment process.
Marks said that he was concerned with non-member subscription prices in budgeting, which would have to be set much earlier, and thought the process would be very complicated. He was also concerned about the mixing of the subscription year and the fiscal year.
Quinn said that a midyear document would he much less useful in giving the financial picture of the Institute, with which the staff concurred. It would show 12 months of journals but only one-half year of income.
Ramsey suggested that this discussion showed that the question needs more study. Gilbert added that this had not been studied prior to the Audit Committee meeting.
Following the tabling of the above motion, Havens made the following motion, which Bauman seconded, and which was unanimously carried.
MOVED that the AIP staff prepare a report for the March 1984 Governing Board meeting on the consequences of the shifting of the AIP year from calendar year to fiscal year 1 July-30 June.
Report of Committee on Fiscal Policy
Clark gave the report of the Committee on Fiscal Policy (Attachment M).
Recommendation That Society Payments for AIP Monthly Statements Be Made to AIP within 10 Days of Statement Date
Clark noted that AIP now pays interest on dues and subscription income but there has been no policy on Societies making payments to AIP. The Committee recommends that guidelines be established for payment of AIP monthly financial statements, with payments to be made within 10 days of the statement date.
Quinn and Wilson thought 10 days was very difficult. Gilbert said his recommendation to the Committee was that payments be made in a reasonable length of time; some Societies now take as long as 30 days, which means that AIP is financing the operations of the Member Societies. He suggested substituting "expeditiously" for 10 days.
Clark and Beyer said that the spirit of this recommendation is to encourage Societies to pay more promptly.
The following recommendation of the Committee on Fiscal Policy, as amended by Vossen to incorporate the change suggested by Gilbert, was unanimously carried.
THAT Member Society payments for AIP monthly financial statements be paid by Societies to AIP expeditiously.
Recommendation Concerning Short-term Interest Payments
Clark said the procedure for calculating short-term interest payments has been very time-consuming. The following two-step proposal was unanimously carried:
MOVED that the procedure for calculating short-term interest payments be computerized at the earliest convenient date. For the interim, the method be simplified by using average monthly interest rates for the calculation and a minimum threshold of $50,000 in funds held.
Report of Committee on Finances
Role of Committee
As Weaver (Chairman of the Committee) could not attend the meeting, Gilbert gave his report as presented on 23 October to the Executive Committee. The Committee has met twice. The first meeting set goals and duties. Gilbert then obtained useful data from sister organizations and the CESSE Committee on Finance and Administration. He compiled a list of prospective investment organizations. Presentations from seven such organizations were made at the 6-7 October meeting. The Committee was impressed with the diversity of these organizations. They reviewed the investment objectives of the Institute and made their final recommendations. Gilbert noted that Avatar and First Manhattan, both of which deal in stocks, have excellent records. Drexel Burnham Lambert is a large stockbroker specializing in arbitrage. For mutual funds, we would go into mutual fund organizations having multiple funds; these can be switched by telephone.
Ramsey reported the action of the Executive Committee on the report.
The Institute will get a monthly computerized printout of our account with each firm. The Committee on Finances will meet quarterly to evaluate these reports.
The following, motion, as approved by the Executive Committee, was carried, the vote was 19 YES, 1 NO, and 1 ABSTAIN.
MOVED that the following recommendations of the Committee on Finances be approved:
THAT the short-term investments of the Institute be invested with the following investment managers in the amounts indicated:
Avatar Associates $2,000,000 First Manhattan Co. $1,000,000 Drexel Burnham Lambert $200,000
$800,000 is to be invested in no-load mutual funds to be selected and monitored by the Committee on Finances (Investments) and the Treasurer of the Institute.
Progress on Computerization of Accounting
Dolowich reported on this area, noting that here the control is with AIP, so the procedures for computerization are going more smoothly. The software package purchased from M & O met the requirement of reproducing the APS monthly statement successfully. The division is nearing completion of quoted prices on the Data General. They are altering the chart of accounts, following the Touche Ross format, in order to fully utilize the general ledger package they purchased. They expect to convert the 31 October general ledger.
The dedicated computer line between New York and Woodbury will be tested soon. All reporting to the Societies is up to date. An Accounts Payable system, with our modifications, has been purchased from M & O. The Job Orders for Publishing has been rewritten for the Data General. Pubs and Reprints is being simplified for the Data General. We will purchase a software package for Fixed Assets from Computer Associates for about $7,500.
Payroll now uses an ADP package. They have found that Managistics has an excellent payroll package which would cost less; they expect to switch to this next year. It can interface with the IBM Personal Computers.
After these jobs are completed and the 1984 budget is prepared, they will work on computerizing prorations, which will speed up the variance statements.
Change in AAS Accounting Services
Gilbert noted the exchange of letters in Attachment T. He has not yet had a response from Boyce to his letter of 23 September. He foresees no problems with this change in procedure.
Slack reviewed the history of this bequest; the Governing Board had acted on Gemant's initial offer in 1969 to establish a prize in some area of general physics with the proceeds (not the capital) from his estate. Upon his death this year, the entire estate, except for $50,000, was left to AIP. The total amount will be between $100,000 and $130,000. The major asset is the house, which the attorney wants to sell before closing probate. He needs advice from the Institute to act on this.
Ramsey reported that it was the recommendation of the Executive Committee to delegate this decision to Management. There was no dissension on this from the Governing Board.
Bequests and Philanthropic Donations: Rhee Proposal to Establish Chi Sun Rhee Foundation
Koch noted the exchange of letters contained in Attachment N, regarding a possible bequest to the Institute from Rhee. No response has yet been received to Ramsey's letter of 16 September l983.
11. Information Service Activities
- Highlights (Information)
- Chem Abstracts Service Agreement with Fachinformationszentrum on STN International
Recommendations of Seybold Consultants on Electronic Communications: Status of Study Plan
Koch noted the Seybold report on existing computer and typesetting capabilities of the Institute and recommendations for integration of these systems and additions to them. He mentioned two points that resulted from their study: 1) caution about making major investments at the present time; and 2) with IBM PC's becoming more standard, better designed keyboards are worth considering. One can also get Wang or ATEX lookalike packages for IBM's. No action is recommended at the present time. A more detailed plan is under study which may be ready for inclusion in the proposed capital budget in December.
Developments with SPIN and Advance SPIN Tapes Including New Prices
Marks reported that the SPIN price was increased to $2,000 for 1984 (Attachment Q). He expects that the Advance SPIN, which Comtex had expressed interest in leasing, will be ready by the fall of 1984. This will be offered to present SPIN subscribers, and may come up as a service for INSTI.
12. Applications for Affiliated Society Status
Letters from Engineering Information Inc. and Society of Photo-optical Instrumentation Engineers
Slack reported that both of these society's applications had been approved by the Executive Committee for recommendation to the Governing Board.
The following action was approved by the Governing Board, on recommendation of the Executive Committee.
MOVED that Engineering Information Inc., and SPIE be approved as affiliated societies of AIP.
Letter to European Physical Society
Koch reported that he had received no response to his invitation of 22 September 1983 for the EPS to become an affiliated society.
13. Plans for Corporate Associates Meeting at Xerox Palo Alto
Koch thanked McIrvine for his efforts in planning an excellent meeting at Xerox Palo Alto.
Consideration of Plans for 1984 Meeting
Koch said that the offer of McDonnell Douglas in St. Louis, MO, to host the 1984 Corporate Associates meeting had been recommended for approval by the Executive Committee.
The following was unanimously carried:
MOVED that the 1984 Corporate Associates meeting be held at McDonnell Douglas in St. Louis, MO.
14. Other Business
Topic for Committee for Public Policy
The following motion was suggested and then made by Marley, seconded by McIrvine, and unanimously carried.
MOVED that the Committee for Public Policy maintain a liaison with the APS on the drafting of a public statement on the impact of security and national controls. When a statement is drafted, that it be circulated to the Governing Board and put on the agenda of the March 1984 meeting.
Expediting of Formation of Educational Policy Committee
Layman said he was concerned that the mechanism for the establishment of the Educational Policy Committee was time-consuming. There are now possible NSF sources for funding some of the projects which have been suggested.
Koch said that, with encouragement, this could be acted on by the Executive Committee in its December meeting. The Governing Board already has individual committees dealing with various aspects of education policy.
15. Future Meetings
Koch noted the Executive Committee September meeting to be held in Woods Hole on 6-8 September 1984.
Assembly of Society Officers: 15-16 March 1984
Grant noted that the Task Force on AIP-Society Relations proposed having a meeting on the first morning of the Assembly (15 March). They would meet with Society officers on topics that have been raised.
Governing Board Meeting: 16-17 March 1984
16. Executive Session
The staff was excused for the Executive Session, which is reported in the official minutes only.
The meeting was adjourned at 4:50 p.m.