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Home » Clarion » 2019 » May 2019 » PSC Audited Financial Statement

PSC Audited Financial Statement

PROFESSIONAL STAFF CONGRESS/CUNY

FINANCIAL STATEMENTS with SUPPLEMENTAL INFORMATION

AUGUST 31, 2018 and 2017

CONTENTS

Independent Auditor’s Report           Notes to Financial Statements

Statements of Financial Position       Supplemental Information

Statements of Activities                        Schedules of Expenses by Category

Statements of Cash Flows

 

Independent Auditor’s Report

To the Executive Board of Professional Staff Congress of the City University of New York

We have audited the accompanying financial statements of the Professional Staff Congress of the City University of New York (PSC/CUNY), which comprise the statements of financial position as of August 31, 2018 and 2017, and the related statements of activities and of cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements: Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility: Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the PSC/CUNY’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the PSC/CUNY’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion: In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Professional Staff Congress of the City University of New York as of August 31, 2018 and 2017, and the changes in its net assets and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Report on Supplemental Information: Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental Schedules of Expenses by Category are presented for purposes of additional analysis and are not a required part of the financial statements. Supplemental information is the responsibility of the PSC/CUNY’s management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

NOVAK FRANCELLA, LLC

New York, New York, March 13, 2019

 

Notes to Financial statements

August 31, 2018 and 2017

 

Note 1. Organization and Tax Status

The Professional Staff Congress of the City University of New York (PSC/CUNY) was created by a merger of the Legislative Conference of The City University of New York and the United Federation of College Teachers. It was created to be the collective bargaining representative of the instructional staff of the City University of New York (CUNY). The Professional Staff Congress of the City University of New York is a Local (Local 2334) of the American Federation of Teachers (AFT). Through the AFT, PSC/CUNY is affiliated with New York State United Teachers (NYSUT) and The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).

The purpose of PSC/CUNY is to advance and secure the professional and economic interest of the instructional staff of the CUNY and other members of the bargaining units of PSC/CUNY. The objectives of PSC/CUNY are to negotiate and administer collective bargaining agreements; to improve the quality of education, research and scholarship at the CUNY; to cooperate with other educational, professional, and labor organizations in order to enhance the quality of education in the nation and to promote the professional and economic interests and the welfare of all workers; to serve as the public representative of the instructional staff of the CUNY and other members of the bargaining units of the Professional Staff Congress; and to cooperate with other CUNY employee and academic organizations and student bodies in order to advance the interests of the faculty, staff and students of the CUNY and the community it serves. The benefits members receive are paid for by contributions from the employer, CUNY, which are negotiated during bargaining as part of members’ compensation. PSC/CUNY and its affiliated organizations have arranged for various special economic benefits for its members.

Supplemental health and welfare benefits are paid from a separate trust fund and are not included in these financial statements.

PSC/CUNY is exempt from Federal income taxes under Section 501(c)(5) of the Internal Revenue Code under a blanket exemption of the AFT.

Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by PSC/CUNY and recognize a tax liability if PSC/CUNY has taken an uncertain position that, more likely than not, would not be sustained upon examination by the Federal, state, or local taxing authorities. PSC/CUNY is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Typically, tax years will remain open for three years; however, this may differ depending upon the circumstances of PSC/CUNY.

Note 2. Summary of Significant

Accounting Policies

Method of Accounting – The accompanying financial statements are prepared using the accrual basis of accounting. Net assets are classified as unrestricted, temporarily restricted or permanently restricted. Net assets are generally reported as unrestricted unless assets are received from donors with explicit stipulations that limit the use of the asset. PSC/CUNY does not have any temporarily or permanently restricted net assets.

Cash and Cash Equivalents – PSC/CUNY considers all unrestricted cash and highly liquid investments, including certificates of deposit with initial maturities of three months or less, to be cash equivalents.

Investments – Investments are carried at fair value which generally represents quoted market prices, or the net asset value of the mutual funds, as of the last business day of the fiscal year as provided by the custodian or investment manager. Certificates of deposit are carried at cost which approximates fair value. Certificates of deposit that have initial maturity dates of more than three months are considered to be investments.

Property and Equipment – Property and equipment are recorded at cost. Major additions are capitalized while replacements, maintenance and repairs which do not improve or extend the lives of the respective assets are expensed currently. Depreciation is computed over the assets’ estimated useful lives, three to thirty years, by the straight line method. Depreciation expense was $69,670 for the year ended August 31, 2018 and $92,831 for 2017.

Accrued Compensated Balances – Future employee absences that have been earned but not yet taken are accrued within the contract limits. The accrued compensated balances were $602,033 for the year ended August 31, 2018 and $631,836 for 2017.

Membership Dues and Agency Fees, and Dues Receivable – Membership dues are recognized as revenue over the membership period. Dues come from members through payroll deductions and direct payments. Dues receivable are recorded as revenues are recognized. PSC/CUNY has determined that no allowance for doubtful accounts for receivables is necessary as of August 31, 2018 and 2017.

Deferred Rent – Operating leases are recognized on a straight-line basis over the term of the lease. Deferred rent has been recorded for the difference between the fixed payment and the rent expense. Deferred rent was $696,220 for the year ended August 31, 2018 and $800,715 for 2017.

Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 3. Concentration of Cash

PSC/CUNY places its cash with financial institutions deemed to be creditworthy. The balance is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. Cash balances may at times exceed the insured deposit limits. As of August 31, 2018 and 2017, PSC/CUNY’s cash in excess of FDIC coverage totaled $2,417,064 and $1,934,584, respectively.

Note 4. Fair Value Measurements

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Basis of Fair Value Measurement:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the PSC/CUNY has the ability to access.

Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model- based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period.

For the years ended August 31, 2018 and 2017, there were no transfers in or out of levels 1, 2, or 3.

See Table 1

Note 5. Single-Employer Pension Plan

PSC/CUNY contributes to the Professional Staff Congress/CUNY Pension Plan (the Plan), a single-employer plan covering professional and management employees who meet age and service requirements. Contributions are actuarially determined.

The Professional Staff Congress of the City University of New York Pension Plan is a defined benefit plan paying 2.2% of Final Average Compensation for each year of service, up to 25 years. Final Average Compensation is the average compensation over the last highest 5 consecutive years (or highest 60 months) of service. Plan assets do not include any securities of the employer or related entities. No amount of future annual benefits of plan participants is covered by insurance contracts. There were no significant transactions between the PSC/CUNY or related parties and the Plan during the years ended August 31, 2018 and 2017.

The following are the balances as of or for the years ended August 31, 2018 and 2017 as provided by the Plan’s actuary:

                                          2018 2017

Projected benefit obligation               $                (7,413,308)             $                (6,999,054)

Fair value of plan assets                        4,309,843                                  3,834,805

Funded status        $                (3,103,465)             $                (3,164,249)

Accumulated benefit obligation        $                (1,597,926)             $                (1,386,967)

Amounts recognized in the statement of financial position:

Noncurrent assets                 $                –                 $                –

Current liabilities                   –                                 –

Noncurrent liabilities                              (3,103,465)                               (3,164,249)

Amounts in net assets not recognized as components of net periodic benefit cost:

Accumulated net gain or (loss)                             (1,505,539)                               (1,777,282)

Weighted-average assumptions:

Discount rate (to discount

plan benefit obligations)                       4.00%                        3.60%

Discount rate (to measure net

periodic pension cost)                           3.60%                        3.00%

Expected return on plan assets                            7.00%                        7.00%

Rate of compensation increase                           4.00%                        4.00%

Employer contributions      $                388,000  $                540,490

Benefits paid          $                112,653 $                –

Net periodic pension cost  $                550,574  $                777,123

 

The change in unfunded pension benefit obligations consists of the following:

                                     2018                         2017

Net periodic pension cost $                550,574  $                777,123

Add: Administrative expenses                              48,385                      56,277

Less: Employer remittances                                 (388,000)                                   (540,490)

                                    210,959                    292,860

Increase (decrease) in unrecognized

accumulated net gain or loss                                (271,743)                                   (932,795)

                  $                (60,784) $                (639,935)

 

In 2018 and 2017, PSC/CUNY has recorded a gain of $271,743 and $932,795, respectively, to its net assets for the additional change in accrued pension payable beyond the current-year pension expense.

The Plan’s expected long-term rate of return on assets assumption is 7.00%. This assumption represents the rate of return on Plan assets reflecting the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation.

The assumption has been determined by reflecting expectations regarding future rates of return for the investment portfolio, with consideration given to the distribution of investments by asset class and historical rates of return for each individual asset class.

At August 31, 2018 and 2017, the Plan’s net assets available for benefits were allocated as follows:

                       2018   2017

Mutual funds         21.64%  21.10%

Common stock      44.71%   44.85%

United States Government and

Government Agency obligations       27.87%  25.00%

Cash and cash equivalents 5.78%      9.05%

The major classes of Plan investments at August 31, 2018 and 2017 are:

                  2018        2017

                  Fair Value                Fair Value

Mutual funds         $  932,746              $   809,141

Common stock      1,926,828                1,719,991

United States Government and

Government Agency obligations       1,201,126                958,480

Cash and cash equivalents 294,143  347,193

                  $  4,309,843           $ 3,834,805

For the years ended August 31, 2018 and 2017, there were no transfers in or out of levels 1, 2 and 3.

Fair Value Measurements at August 31, 2018

                  Total        Level 1    Level 2    Level 3

Cash and

cash equivalents   $                249,143  $                249,143  $                 –                $                –

Common stock:

Basic materials                        178,299                    178,299                    –                                   –

Consumer goods                    234,280                    234,280                    –                                   –

Financial                  257,038                    257,038                    –                                   –

Healthcare                                542,042                    542,042                    –                                   –

Industrial goods                      28,125                      28,125                      –                                   –

Services                    302,703                    302,703                    –                                   –

Technology                               384,341                    384,341                    –                                   –

U.S. Government and Government

Agency obligations:

United States Treasury                          1,106,839                                 1,106,839                                  –                                  –

Government agencies                            94,287                      –                                  94,287                      –

Mutual funds:

Fixed income                           833,116                    833,116                    –                                  –

Equity                       99,630                     99,630                                                       –

                  $                4,309,843                $                4,215,556                $                94,287    $               

 

Fair Value Measurements at August 31, 2017

                                    Total         Level 1    Level 2    Level 3

Cash and cash equivalents                   $                347,193  $                347,193  $                –                 $                –

Common stock:

Basic materials                       180,210                   180,210                    –                                  –

Consumer goods                   146,818                   146,818                    –                                  –

Financial                  117,163                   117,163                    –                                  –

Healthcare                                447,216                   447,216                    –                                  –

Industrial goods                     66,733                     66,733                      –                                  –

Services                    215,683                   215,683                    –                                  –

Technology                              546,168                    546,168                    –                                  –

U.S. Government and Government

Agency obligations:

United States Treasury                         815,014                   815,014                    –                                  –

Government agencies                            143,466                   –                                   143,466                   –

Mutual funds:

Fixed income                           688,635                   688,635                    –                                  –

Equity                       120,506                   120,506                                                     –

                  $                3,834,805                $                3,691,339                $                143,466  $               

 

PSC/CUNY’s investment policies are designed to ensure that adequate plan assets are available to provide future payments of pension benefits to eligible participants. Taking into account the expected long-term rate of return on plan assets, PSC/CUNY formulates the investment portfolio composed of the optimal combination of cash and cash equivalents, equities, fixed income and mutual funds.

 

Future Cash Flows

The projected contribution for next fiscal year is $420,000.

The following benefit payments, which reflect expected future service, are expected to be paid as follows:

                  2019        $                2,006,111

                  2020                          57,238

                  2021                          860,446

                  2022                          56,203

                  2023                          55,619

                  2024 – 2028                              1,268,004

Note 6. Multiemployer Defined Benefit Pension Plan

 

PSC/CUNY participates in the Office and Professional Employees International Union, Local 153 Pension Fund, a multiemployer defined benefit pension plan, under the terms of a collective bargaining agreement that covers its union-represented employees who meet age and service requirements. The risks of participating in multiemployer defined benefit pension plans are different from single-employer plans in the following aspects:

                  a.               Assets contributed to the multiemployer defined benefit pension plan by one employer may be used to provide benefits to employees of other participating employers.

                  b.              If a participating employer stops contributing to the multiemployer defined benefit pension plan, the unfunded obligations of the multiemployer defined benefit pension plan may be borne by the remaining participating employers.

                  c.               If the Plan chooses to stop participating in the multiemployer defined benefit pension plan, the Plan may be required to pay the multiemployer defined benefit pension plan an amount based on the underfunded status of the multiemployer defined benefit pension plan, referred to as a withdrawal liability.

PSC/CUNY’s participation in the multiemployer defined benefit pension plan for the annual periods ended August 31, 2018 and 2017, is outlined in the table below. The zone status is based on information that PSC/CUNY received from the multiemployer defined benefit pension plan and is certified by the multiemployer defined benefit pension plan’s actuary. Among other factors, pension plans in the red zone are generally less than 65 percent funded, pension plans in the yellow zone are less than 80 percent funded, and pension plans in the green zone are at least 80 percent funded.

See Table 2

* PSC/CUNY participates in the Local 153 Pension Fund through a collective bargaining agreement between PSC/CUNY and the Office & Professional Employees International Union, Local 153AFL-CIO (Local 153). The collective bargaining agreement has a three-year term of October 1, 2015 through September 30, 2018.

See Table 3

* The employer contribution rate of the Pension Plan was $260 per week per employee effective June 1, 2018, and $236 effective June 1, 2017.

See Table 4

Note 7. Multiemployer Plan that Provides Postretirement Benefits Other Than Pensions

PSC/CUNY contributed to one multiemployer defined benefit health and welfare plan during the years ended August 31, 2018 and 2017 that provides postretirement benefits for its full-time support staff employees. PSC/CUNY’s contributions to the welfare plan on behalf of its full- time support staff employees, contribution rates, and number of employees covered were as follows:

See Table 5

*Under a collective bargaining agreement between Local 153 and PSC/CUNY, PSC/CUNY established coverage through an insured Preferred Provider Organization Plan to provide medical, dental and prescription benefits. PSC/CUNY contributed $66 per month to Local 153 Health Fund per active employee and $8 per month per retiree under a collective bargaining agreement between Local 153 and PSC/CUNY to provide supplement benefits for life insurance coverage and vision benefits.

Note 8. Related Party Transactions

Identification of Related Organizations

PSC/CUNY has the following related entities:

  • American Federation of Teachers (AFT)
  • New York State United Teachers (NYSUT)
  • Professional Staff Congress of the City University of New York Welfare Fund
  • The American Association of University Professors (AAUP)

The entities listed above share common trustees, officers or affiliation with PSC/CUNY.

PSC/CUNY is affiliated with New York State United Teachers (NYSUT) and the American Federation of Teachers (AFT) through arrangements whereby PSC/CUNY pays dues to each entity in order for its members to participate in affiliated programs and, in turn, is reimbursed for various expenses, including reimbursements for meetings, organizing, legislative representation, training programs, and arbitration.

Dues paid to NYSUT for the years ended August 31, 2018 and 2017 were $7,177,294 and $7,267,213, respectively. As of August 31, 2018 and 2017, PSC/CUNY owed NYSUT $1,407,543 and $1,169,000, respectively for dues. Dues paid to AFT for the years ended August 31, 2018 and 2017 were $3,528,480 and $3,588,825, respectively. As of August 31, 2018 and 2017, PSC/CUNY owed AFT $724,924 and $603,000, respectively for dues.

Reimbursements from NYSUT for the years ended August 31, 2018 and 2017 were $3,749,590 and $3,766,775, respectively. As of August 31, 2018 and 2017, NYSUT owed PSC/CUNY $303,000 and $416,000, respectively. Reimbursements from AFT for the years ended August 31, 2018 and 2017 were $285,501 and $305,391, respectively. As of August 31, 2018 and 2017, AFT owed PSC/CUNY $35,000 and $111,844, respectively.

PSC/CUNY pays NYSUT a monthly fee for dues processing. Dues processing fees totaled $72,600 for the years ended August 31, 2018 and 2017. As of August 31, 2018 and 2017, PSC/CUNY owed NYSUT $6,050 for dues processing.

PSC/CUNY reimburses the Welfare Fund for shared computer services. PSC/CUNY’s portion of shared computer expenses totaled $34,575 and $38,108 for the years ended August 31, 2018 and 2017, respectively. As of August 31, 2018 and 2017, PSC/CUNY owed the Welfare Fund $2,000 and $7,000, respectively for shared computer services.

Office Space Leases

PSC/CUNY leases office space from 61 Broadway Owner, LLC (the Realty Corp). On September 30, 2005, PSC/CUNY entered into a sixteen year lease with the Realty Corp for Suites 1500 and 1615 of the 61 Broadway building. The lease was amended on August 4, 2009 and May 17, 2012 to include Suites 1630 and 1610, respectively. The leases, all of which expire on August 31, 2022, are classified as operating leases and provide for minimum annual rentals, plus certain additional expense escalations and utility charges. Per the agreement, PSC/CUNY is also responsible for its portion of real estate taxes.

The minimum annual future rental payments under the three leases are summarized as follows:

                  Year ending August 31,

                  2019        $                1,219,899

                  2020                          1,247,967

                  2021                          1,282,830

                  2022                          1,309,149

                  Total        $                5,059,845

 

Rent including utilities and maintenance was $1,182,644 for the year ended August 31, 2018 and $1,191,945 for 2017.

PSC/CUNY subleases office space to the Professional Staff Congress of the City University of New York Welfare Fund, a related party. The Welfare Fund pays PSC/CUNY a sum equal to 23.90% of the lease of Suite 1500. The sublease expires on August 31, 2022.

 

The minimum annual future rental income under the sublease with the related party is summarized as follows:

                  Year ending August 31,

                  2019        $                208,137

                  2020                          212,300

                  2021                          216,546

                  2022                          220,877

                  Total        $                857,860

 

Total rental income for the years ended August 31, 2018 and 2017 was $238,914 and $237,402, respectively.

 

Note 9. Functional Expenses

PSC/CUNY expended $20,119,699 for the year ended August 31, 2018 and $20,225,596 for 2017. PSC/CUNY has estimated that on a functional classification basis these expenses would be allocated as follows:

                  2018        2017

Union activities     78%        78%

Management & administrative          22%        22%

Total        100%       100%

 

Note 10. Litigation

Certain claims, suits, and complaints arising in the ordinary course of business have been filed or are pending against PSC/CUNY.

On October 24, 2018, a non-member filed a lawsuit against PSC/CUNY along with several of its affiliates, as a class-action suit. The claim arises from PSC/CUNY’s collection of agency fees of which the non-member is seeking an order from the court directing a refund, along with interest, damages, and reasonable attorney fees and costs. The complaint does not specify a dollar amount sought. PSC/CUNY and its affiliates in the suit are parties to a joint defense agreement and are working on a motion to dismiss the claim. The motion papers are due on March 22, 2019.

 

Note 11. Subsequent Events

PSC/CUNY has evaluated subsequent events through March 13, 2019, the date the financial statements were available to be issued, and they have been evaluated in accordance with relevant accounting standards.

Supplemental Information

Schedules of Expenses by Category

Years Ended August 31, 2018 and 2017

                                               2018                                2017

Affiliation fees

New York State United Teachers       $               7,177,294                $                7,267,213

American Federation of Teachers                       3,528,480                                  3,588,825

The American Association of University Professors                        260,500                    232,167

Municipal Labor Committee                                 33,220                      20,835

Other                       36,537                      31,625

                                    11,036,031                                11,140,665

 

Salaries, employee benefits, and payroll taxes

Salaries                     3,586,257                                  3,685,874

Payroll taxes                           279,832                    275,780

Health benefit expense                        845,657                    792,142

Pension benefit expense                     727,371                    961,374

Other                       38,194                      40,428

                                    5,477,311                                  5,755,598

 

Representational and governance

Conferences and conventions                              105,773                   133,206

Elections                                    82,723                     12,104

Committees                             4,402                        20,164

                                    192,898                   165,474

 

Public relations

Mobilization and outreach                   129.589                    139,152

Community relations                              32,306                      41,342

Cultural activities                   5,552                         4,352

                                    167,447                    184,846

 

Building expenses

Rent and services                   1,182,644                                 1,191,945

Real estate taxes                    120,935                   99,982

Repairs and maintenance                     100,817                   97,963

                                    1,404,396                                 1,389,890

 

Administrative, office and general

Office      $               264,331  $                286,349

Postage                    31,498                      41,836

Insurance                                  55,585                      39,399

Dues processing                     72,600                      72,600

Other                        6,735                         8,171

                                    430,749                    448,355

 

Professional fees

Legal                          246,036                    128,915

Consulting                                 237,312                    141,813

Accounting and auditing                       37,100                      40,000

Computer                                  90,320                      92,750

                                    610,768                    403,478

 

Contract and budget campaigns                       112,855                    180,293

 

Stipends and reassigned time                             511,272                    464,166

 

Depreciation expense         69,670    92,831

 

Membership campaign       106,302 

 

Total expenses      $                20,119,699              $               20,225,596

 

See accompanying notes to financial statements.

 

Professional Staff Congress/CUNY

Statements of Financial Position

August 31, 2018 and 2017

                                                                         2018                   2017

Assets

Cash and cash equivalents        $ 2,667,313       $ 2,184,873

Investments – at fair value

Certificates of deposit                    992,000             992,000

Mutual funds                                    9,071,114         7,850,374

Total investments                         10,063,114       8,842,374

Receivables

Dues                                                      357,000             724,000

Due from related entities             338,000             527,884

Total receivables                            695,000            1,251,884

Property and equipment

Equipment                                          684,544             683,028

Leasehold improvements             529,641             529,641

Furniture and fixtures                    340,407            340,407

                                                                  1,554,592         1,553,076

Less: accumulated depreciation               (1,366,771)                   (1,297,101)

Net property and equipment 187,821             255,975

Total assets                             $ 13,613,248    $ 12,535,106

Liabilities and Net Assets

Current liabilities

Accrued expenses                        $ 321,803         $ 328,990

Accrued compensated balances                 602,033                           631,836

Due to related entities                  2,140,517        1,785,050

Total current liabilities                3,064,353        2,745,876

Long-term liabilities

Deferred rent                                $ 696,220         $  800,715

Unfunded projected pension benefit obligation                            3,103,465                                  3,164,249

Total long-term liabilities          3,799,685         3,964,964

Total liabilities                              6,864,038         6,710,840

Unrestricted net assets                  6,749,210        5,824,266

Total liabilities and net assets   $ 13,613,248    $ 12,535,106

See accompanying notes to financial statements.

Professional Staff Congress/CUNY

Statements of Activities

Years Ended August 31, 2018 and 2017

                                                                           2018                2017

Revenue                                                                           

Membership dues and agency fees         $ 16,257,484  $               18,595,041

Organizing assistance                    4,035,091        4,072,166

Investment income

Net realized and unrealized gains (losses)         27,265                                 110,071

Interest and dividends                  235,797           188,363

Less investment fees                    (21,651)          (19,395)

Rental income                                     238,914           237,402

Total revenue                             20,772,900     23,183,648

 

Expenses                                                                         

Affiliation fees                                  11,036,031     11,140,665

Salaries, employee benefits, and payroll taxes                                5,477,311                                  5,755,598

Representational and governance              192,898                         165,474

Public relations                                   167,447           184,846

Building expenses                            1,404,396        1,389,890

Administrative, office and general              430,749                        448,355

Professional fees                                610,768           403,478

Contract & budget campaigns    112,855           180,293

Stipends and reassigned time    511,272           464,166

Depreciation expense                        69,670             92,831

Membership campaign                 106,302                     

Total expenses                           20,119,699     20,225,596

 

Net increase (decrease) in net assets           653,201                        2,958,052

 

Net assets, unrestricted

Beginning of year                             5,824,266        1,933,419

Adjustment to pension liability funded status  271,743                        932,795

End of year                                     $ 6,749,210     $ 5,824,266

 

See accompanying notes to financial statements.

 

Professional Staff Congress/CUNY

Statements of Cash Flows

Years Ended August 31, 2018 and 2017

                                                                                             2018               2017

Cash flows from operating activities

Change in net assets                                          $ 653,201       2,958,052

Adjustments to reconcile change in net assets to net cash

provided by operating activities

Depreciation                                                             69,670           92,831

Net realized and unrealized (gains) losses (27,265)       (110,071)

Pension liability funded status                        271,743        932,795

(Increase) decrease in assets:

Dues receivable                                                  367,000        343,000

Due from related entities                               189,884        185,765

Increase (decrease) in liabilities:

Accrued expenses                                                (7,187)           (8,485)

Accrued compensated absences                 (29,803)        121,824

Due to related entities                                     355,467        114,475

Unfunded pension liability                             (60,784)       (639,935)

Deferred rent                                                       (104,495)     (80,488)

Net cash provided by (used for) operating activities                               1,677,431                                  3,909,763

 

Cash flows from investing activities

Purchase of property and equipment           (1,516)           (9,896)

Purchase of certificates of deposit                (198,000)    (199,000)

Liquidation of certificates of deposit            198,000        199,000

Sale of investments                                               21,651           19,395

Purchase of investments                                   (1,215,126) (1,869,344)

Net cash used for investing activities    (1,194,991) (1,859,845)

 

Net increase (decrease) in cash                       482,440       2,049,918

 

Cash and cash equivalents

Beginning of year                                                  2,184,873     134,955

End of year                                                           $ 2,667,313    2,184,873

See accompanying notes to financial statements.

Table 1

                                                               Fair Value Measurements at August 31, 2018

                                                          Total                     Level 1                   Level 2        Level 3

Certificates of deposit         $ 992,000             $ 992,000           $          –           $        –

Mutual funds:

Fixed income                             6,298,992            6,298,992                     –                     –

Equity                                           2,772,122            2,772,122                    –                     –

 

                                                     $ 10,063,114       $ 10,063,114      $          –           $        –

 

                                                            Fair Value Measurements at August 31, 2017

                                                          Total                     Level 1                   Level 2        Level 3

Certificates of deposit         $ 992,000             $ 992,000           $          –           $        –

Mutual funds:

Fixed income                             6,316,525            6,316,525                     –                     –

Equity                                           1,533,849            1,533,849                    –                     –

 

                  $                8,842,374                $                8,842,374                $                –                 $                –

Table 2

Legal Name of Pension Plan

Pension Plan’s

Employer Identification Number

Pension Plan’s Plan Number

Pension Protection Act Zone Status

Expiration Date of Collective Bargaining Agreement

Zone Status

Extended Amortization Provisions Used?

Zone Status

Extended Amortization Provisions Used?

Local 153 Pension Fund

13-2864289

001

Red as of 01/01/18

No

Red as of 01/01/17

No

*

 

Table 3

Legal Name of

Pension Plan

Contributions paid by

the Plan directly to the Pension Plan

Contributions to the Pension Plan greater than 5% of total 

Pension Plan contributions

(Plan year ending)

Employer Contribution Rate of the Pension Plan

Number of Employees Covered by the Pension Plan for which the Plan contributes directly to the Pension Plan

8/31/2018

8/31/2017

8/31/2018

8/31/2017

8/31/2018

8/31/2017

Local 153 Pension Fund

$ 128,412

$ 128,024

No, Plan year ending 8/31/18.

No, Plan year ending 8/31/17.

*

*

10

13

                 

 

Table 4

Legal Name of Pension Plan

Funding Improvement Plan

or Rehabilitation Plan Implemented or Pending?

Surcharge paid to Pension Plan by the Benefit Funds?

Minimum contributions required in future by CBA, statutory requirements, or other contractual requirements?

No?

If yes, description

Local 153 Pension Fund

Rehabilitation Plan Implemented

Yes

No

N/A

 

Table 5

Legal Name of Plan providing postretirement benefits other than pension

Contributions to Plan

Employer contribution rates

Number of employees covered by Plan

8/31/2018

8/31/2017

8/31/2018

8/31/2017

8/31/2018

8/31/2017

Local 153 Health Fund

$  10,246

$  11,845

*

*

17

19


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