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 |
