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Home » Content » PSC Financial Audit: August 31, 2020 and 2019

PSC Financial Audit: August 31, 2020 and 2019

Professional Staff Congress of the City University of New York 

Financial Statements with Supplemental Information 

August 31, 2020 and 2019 

Contents:

Independent Auditor’s Report

Statements of Financial Position

Statements of Activities

Statements of Functional Expenses

Statements of Cash Flows

Notes to Financial Statements 

Supplemental Information 

​Schedules of Expenses by Category

 


Independents Auditors 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, 2020 and 2019, and the related statements of activities, functional expenses, and 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, 2020 and 2019, 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. 

 Change in Accounting Principle 

As discussed in Note 11 to the financial statements, PSC/CUNY adopted new accounting guidance, ASU 2014-09 – Revenue from Contracts with Customers (Topic 606), ASU 2018-08 – Not-for-Profit Entities (Topic 958) Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, and ASU 2017-07 – Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost.  Our opinion is not modified with respect to this matter. 

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 February 26, 2021 


 

STATEMENTS OF FINANCIAL POSITION

AUGUST 31, 2020 AND 2019

   2020     2019 
Assets      
       
Cash and cash equivalents           $1,237,823                 $711,649 
       
Investments – at fair value      
Mutual funds           12,367,478              10,849,343 
       
Investments – other      
Certificates of deposit                992,000                   992,000 
       
Total investments           13,359,478              11,841,343 
       
Receivables      
Dues                 167,000                   125,000 
Due from related entities                141,000                   617,400 
Due from other                         –                       90,000 
Total receivables                308,000                   832,400 
       
Property and equipment      
Equipment                731,585                   702,649 
Leasehold improvements                658,758                   531,860 
Furniture and fixtures                342,580                   341,405 
              1,732,923                1,575,914 
Less:  accumulated depreciation           (1,471,411)             (1,416,898)
Net property and equipment                261,512                   159,016 
       
Total assets         $15,166,813            $13,544,408 
       
Liabilities and Net Assets      
       
Current liabilities      
Accrued expenses               $403,058                $273,379 
Accrued compensated balances                589,981                   697,814 
Due to related entities             1,629,418                1,620,215 
Deferred revenue                  64,119                           –   
Total current liabilities             2,686,576                2,591,408 
       
Long-term liabilities      
Deferred rent             $410,166               $567,227 
Unfunded projected pension benefit obligation             4,263,151                4,071,885 
Total long-term liabilities             4,673,317                4,639,112 
       
Total liabilities             7,359,893                7,230,520 
       
Net assets without donor restrictions             7,806,920                6,313,888 
       
Total liabilities and net assets          $15,166,813            $13,544,408 

 


STATEMENTS OF ACTIVITIES

Years Ended August 31, 2020 and 2019 

       
  2020   2019
       
Revenue      
Membership dues $ 16,255,106   $ 15,109,810
Organizing assistance 3,591,029   3,546,488
Investment income, net 742,525   802,753
Rental income 283,077   260,616
Other income 55,029  
       
Total revenue 20,926,766   19,719,667
       
Expenses      
Affiliation fees 10,122,154   9,934,737
Salaries, employee benefits, and payroll taxes 5,775,348   5,450,920
Representational and governance 114,506   146,542
Public relations 96,697   154,877
Building expenses 1,457,241   1,401,783
Administrative, office and general 338,820   420,801
Professional fees 733,350   461,140
Contract and budget campaigns 317,051   759,168
Stipends and reassigned time 458,436   505,851
Depreciation expense 54,513   50,127
Membership campaign 11,328   31,707
       
Total expenses 19,479,444   19,317,653
       
Net increase in net assets before other changes 1,447,322   402,014
       
Other changes in net assets      
Unfunded pension benefits obligation adjustments      
other than net periodic pension service cost 45,710   (837,336)
       
Net increase (decrease) in net assets 1,493,032   (435,322)
       
Net assets without donor restrictions      
Beginning of year 6,313,888   6,749,210
       
End of year $ 7,806,920   $ 6,313,888

STATEMENTS OF FUNCTIONAL EXPENSES

Years Ended August 31, 2020 and 2019 

  2020           2019        
      Member   Support       Member   Support
  Total   Services   Services   Total   Services   Services
                       
Affiliation fees $10,122,154   $10,122,154   $ –   $ 9,934,737   $ 9,934,737   $ –
                       
Salaries, employee benefits and payroll taxes 5,775,348   2,461,884   3,313,464   5,450,920   2,270,353   3,180,567
                       
Representational and governance 114,506   114,506     146,542   146,542  
                       
Public relations 96,697   96,697     154,877   154,877  
                       
Building expenses 1,457,241   621,222   836,019   1,401,783   583,843   817,940
                       
Administrative, office and general 338,820   92,205   246,615   420,801   124,297   296,504
                       
Professional fees 733,350   733,350     461,140   461,140  
                       
Contract and budget campaigns 317,051   317,051     759,168   759,168  
                       
Stipends and reassigned time 458,436   458,436     505,851   505,851  
                       
Depreciation expense 54,513     54,513   50,127     50,127
                       
Membership campaign 11,328   11,328     31,707   31,707  
                       
Total expenses $19,479,444   $15,028,833   $ 4,450,611   $19,317,653   $14,972,515   $ 4,345,138

 


STATEMENTS OF CASH FLOWS

Years Ended August 31, 2020 and 2019 

  2020   2019
       
Cash flows from operating activities      
Change in net assets $ 1,447,322   $ 402,014
Adjustments to reconcile change in net assets to net cash      
provided by operating activities      
Depreciation 54,513   50,127
Net realized and unrealized gains (455,685)   (502,569)
Unfunded pension benefit obligation adjustments      
other than net periodic pension service cost 45,710   (837,336)
Decrease (increase) in assets:      
Dues receivable (42,000)   232,000
Due from related entities 476,400   (279,400)
Due from other 90,000   (90,000)
Increase (decrease) in liabilities:      
Accrued expenses 129,679   (48,424)
Accrued compensated absences (107,833)   95,781
Due to related entities 9,203   (520,302)
Deferred revenue 64,119  
Deferred rent (157,061)   (128,993)
Unfunded projected pension benefit obligation 191,266   968,420
Net cash provided by (used for) operating activities 1,745,633   (658,682)
       
Cash flows from investing activities      
Purchase of property and equipment (157,009)   (21,322)
Purchase of certificates of deposit (297,000)   (298,000)
Liquidation of certificates of deposit 297,000   298,000
Sale of investments 678,254   23,699
Purchase of investments (1,740,704)   (1,299,359)
Net cash used for investing activities (1,219,459)   (1,296,982)
       
       
Net increase (decrease) in cash 526,174   (1,955,664)
       
Cash and cash equivalents      
Beginning of year 711,649   2,667,313
       
End of year $ 1,237,823   $ 711,649

 


NOTES TO FINANCIAL STATEMENTS 

August 31, 2020 and 2019 

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 U.S. 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 in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for non-profit organizations.  Net assets are classified as net assets without donor restrictions and with donor restrictions.  Net assets are generally reported as net assets without donor restrictions unless assets are received from donors with explicit stipulations that limit the use of the asset.  PSC/CUNY does not have any net assets with donor restrictions.  Membership dues and fees are accounted for as exchange transactions. 

Net Assets without Donor Restrictions – Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of PSC/CUNY.  These net assets may be used at the discretion of PSC/CUNYs management and the Board of Directors. Net assets without donor restrictions totaled $7,807,020 and $6,313,888 for the years ended August 31, 2020 and 2019, respectively. 

 Cash and Cash Equivalents – PSC/CUNY considers all 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 held for investment that are not debt securities are classified as Investments – other and are carried at cost. 

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 $54,513 and $50,127 for the years ended August 31, 2020 and 2019, respectively. 

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 $589,981 and $697,814 for the years ended August 31, 2020 and 2019, respectively. 

Membership Dues 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, 2020 and 2019. 

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 $410,166 and $567,227 for the years ended August 31, 2020 and 2019, respectively. 

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 and certificates of deposit with financial institutions deemed to be creditworthy.  The balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.  Cash balances and certificates of deposits may at times exceed the insured deposit limits. As of August 31, 2020, PSC/CUNY’s cash and certificates of deposit in excess of FDIC coverage totaled $987,823 and $742,000, respectively. 

NOTE 4. AVAILABILITY AND LIQUIDITY 

The following represents PSC/CUNY’s financial assets available within one year of the statements of financial position date for general expenditure at August 31, 2020 and 2019: 

 

                2020   2019
Financial assets available within one year:                    
Cash and cash equivalents               $ 1,237,823   $ 711,649
Investments               13,359,478   11,841,343
Receivables               308,000   832,400
                     
Total financial assets               14,905,301   13,385,392
                     
Less investments maturing greater than one year               (793,000)   (794,000)
                     
Financial assets available to meet general expenditures                    
within one year               $14,112,301   $12,591,392

ShapeAs part of PSC/CUNY’s liquidity plan, excess cash is maintained in checking and money market accounts, and certificates of deposit. 

NOTE 5. 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, 2020 and 2019, there were no transfers in or out of levels 1, 2, or 3. 

The following tables set forth, by level within the fair value hierarchy, the major categories of investments measured at fair value at August 31, 2020 and 2019: 

 Fair Value Measurements at August 31, 2020 
                 
    Total   Level 1   Level 2   Level 3
                 
Mutual funds   $ 12,367,478   $ 12,367,478   $ –   $ –
                 
Investments at fair value   $ 12,367,478   $ 12,367,478   $ –   $ –
                 
                 
                 
    Fair Value Measurements at August 31, 2019            
    Total   Level 1   Level 2   Level 3
                 
Mutual funds   $ 10,849,343   $ 10,849,343   $ –   $ –
                 
Investments at fair value   $ 10,849,343   $ 10,849,343   $ –   $ –

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. 

NOTE 6. SINGLE-EMPLOYER PENSION PLAN 

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, 2020 and 2019.  

The following are the balances as of or for the years ended August 31, 2020 and 2019 as provided by the Plan’s actuary:

  
          2020   2019
               
Projected benefit obligation         $ (10,367,175)   $ (9,038,340)
Fair value of plan assets         6,104,024   4,966,455
               
Funded status         $ (4,263,151)   $ (4,071,885)
               
Accumulated benefit obligation         $ (2,004,164)   $ (1,797,367)
               
Amounts recognized in the statement of financial position:              
Noncurrent liabilities         $ (4,263,151)   $ (4,071,885)
               
Amounts in net assets not recognized as components              
               
of net periodic benefit cost: Accumulated net (loss)         (2,258,987)   (2,274,518)
               
Weighted-average assumptions:              
  Discount rate (to discount plan benefit obligations)       2.59%   2.85%
  Discount rate (to measure net periodic pension cost)       2.85%   4.00%
  Expected return on plan assets       7.00%   7.00%
  Rate of compensation increase       4.00%   4.00%
               
Employer contributions         $ 420,000   $ 431,047
               
Benefits paid         $ 91,497   $ 60,355
               
Net periodic pension cost – service cost         $ 656,976   $ 562,131
               
Other components of net periodic pension cost:              
               
  Interest cost       $ 256,180   $ 295,236
  Expected return on assets       (362,316)   (312,091)
  Recognized actuarial (gain) loss       75,957   39,142
  Other         46,070
          $ (30,179)   $ 68,357

 

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

        2020   2019
             
Changes in net periodic pension cost – service cost:            
Net periodic pension cost – service cost       $ 656,976   $ 562,131
Less: Employer contributions       (420,000)   (431,047)
        $ 236,976   $ 131,084
             
Changes recognized in unrestricted net assets other            
than net periodic pension cost – service cost:            
Other components of net periodic pension cost       $ (30,179)   $ 68,357
Increase (decrease) in unrecognized            
accumulated net gain or loss       (15,531)   768,979
        $ (45,710)   $ 837,336
             
             
        $ 191,266   $ 968,420

 

In 2020 and 2019, PSC/CUNY has recorded a gain of $45,710 and a loss of $837,336, 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. 

For the years ended August 31, 2020 and 2019, there were no transfers in or out of levels 1, 2 and 3. 

 The following tables set forth, by level within the fair value hierarchy, the major categories of Plan investments measured at fair value and the allocation of the Plan’s net assets available for benefits at August 31, 2020 and 2019: 

Fair Value Measurements at August 31, 2020

 

      Total   Level 1   Level 2   Level 3
                   
Cash and cash equivalents 1.67%   $ 102,171   $ 102,171   $ –   $ –
Equities 56.32%   3,437,603   3,437,603    
U.S Government and Government                  
Agency obligations 22.25%   1,358,104   1,358,104    
Mutual funds 19.76%   1,206,146   1,206,146    
                   
  100.00%   $ 6,104,024   $ 6,104,024   $ –   $ –
                   
                   
Fair Value Measurements at August 31, 2019                  
      Total   Level 1   Level 2   Level 3
                   
Cash and cash equivalents 3.77%   $ 187,311   $ 187,311   $ –   $ –
Equities 38.83%   1,928,229   1,928,229    
U.S Government and Government                  
Agency obligations 35.62%   1,769,203   1,684,280   84,923  
Mutual funds 21.78%   1,081,712   1,081,712    
                   
  100.00%   $ 4,966,455   $ 4,881,532   $ 84,923   $ –

ShapeShapeShape

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: 

2021  $1,014,887
2022  $226,371
2023  $218,508
2024  $330,595
2025  $217,572
2026-2030  $1,720,407

 

NOTE 7. 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: 

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

  1. 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. 

  1. 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, 2020 and 2019 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. 

 

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 01/01/20 No Red as of 01/01/19 No *

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, 2018 through September 30, 2021. 

  
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  
                 
  8/31/2020 8/31/2019     8/31/2020 8/31/2019 8/31/2020 8/31/2019
Local 153 Pension Fund $126,656 $126,844 No, Plan year ending 8/31/20. No, Plan year ending 8/31/19. * * 9 10

* The employer contribution rate of the Pension Plan was $275 per week per employee effective June 1, 2020, and $267 effective June 1, 2019. 

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

NOTE 8. 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, 2020 and 2019 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: 

Legal Name of Plan providing postretirement benefits other than pension Contributions to Plan   Employer contribution rates   Number of employees covered by Plan  
  8/31/2020 8/31/2019 8/31/2020 8/31/2019 8/31/2020 8/31/2019
Local 153 Health Fund $ 9,177 $ 9,440 * * 15 16

*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 9. 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, 2020 and 2019 were $6,539,652 and $6,463,851, respectively.  As of August 31, 2020 and 2019, PSC/CUNY owed NYSUT $1,057,000 and $1,069,000, respectively, for dues.  Dues paid to AFT for the years ended August 31, 2020 and 2019 were $3,256,126 and $3,147,839, respectively.  As of August 31, 2020 and 2019, PSC/CUNY owed AFT $556,000 and $542,000, respectively, for dues. 

Reimbursements from NYSUT for the years ended August 31, 2020 and 2019 were $3,319,634 and $3,282,090, respectively.  As of August 31, 2020 and 2019, NYSUT owed PSC/CUNY 

$116,000 and $521,000, respectively.  Reimbursements from AFT for the years ended August 31, 2020 and 2019 were $271,395 and $264,398, respectively.  As of August 31, 2020 and 2019, AFT owed PSC/CUNY $25,000 and $88,000, respectively. 

 PSC/CUNY pays NYSUT a monthly fee for dues processing.  Dues processing fees totaled 

$76,357 and $72,600 for the years ended August 31, 2020 and 2019, respectively.  As of August 31, 2020 and 2019, PSC/CUNY owed NYSUT $9,807 and $6,050 for dues processing, respectively.  As of August 31, 2020, PSC/CUNY owed NYSUT $1,772 for postage. 

PSC/CUNY reimburses the Welfare Fund for shared computer services. PSC/CUNY’s portion of shared computer expenses totaled $49,887 and $38,978 for the years ended August 31, 2020 and 2019, respectively.  As of August 31, 2020 and 2019, PSC/CUNY owed the Welfare Fund $3,937 and $1,334, respectively for shared computer services.  As of August 31, 2019, the Welfare Fund owed PSC/CUNY $5,400 in consulting fees related to office construction.  As of August 31, 2020 and 2019, PSC/CUNY owed the Welfare Fund $902 and $1,831 in other consulting fees. 

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 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,

 2021  $1,282,830
 2022  $1,309,149
 TOTAL  $2,591,979

Rent including utilities and maintenance was $1,206,265 and $1,189,874 for the years ended August 31, 2020 and 2019, respectively.  

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,

 2021  $216,546
 2022  $220,877
 Total  $437,423

Total rental income for the years ended August 31, 2020 and 2019 was $283,077 and $260,616, respectively.  As of August 31, 2019, the Welfare Fund owed PSC/CUNY $3,000 for rent.  This amount was reimbursed as of August 31, 2020. 

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.  The plaintiffs filed an amended complaint of April 12, 2019.  PSC/CUNY and its affiliates in the suit are parties to a joint defense agreement and moved to dismiss the claim. In an Opinion and Order dated January 3, 2020, the Judge granted the motion to dismiss and issued a judgment dismissing the case on January 10, 2020.  The plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Second Circuit on February 5, 2020.  The appeal was upheld by the U.S. Court of Appeals and the case was dismissed on January 11, 2021. 

NOTE 11. CHANGE IN ACCOUNTING PRINCIPLE 

In May 2014 and June 2018, FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) and ASU 2018-08 – Not-for-Profit Entities (Topic 958) Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, respectively.  The updates address the accounting guidance for contributions received and contributions made, including evaluating whether transactions should be accounted for as contributions or as exchange transactions subject to other guidance.  PSC/CUNY has adjusted the presentation of these statements accordingly.  The ASUs have been applied prospectively to the 2020 presentation and did not have a material effect on the financial statements.  

In March 2017, FASB issued ASU 2017-07 – Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  The update requires that the service cost component of net periodic postretirement benefit cost be reported in the same classification line as other employee compensation costs arising from services rendered during the period. PSC/CUNY has adjusted the presentation of the statements of activities accordingly.  The ASU has been applied retrospectively.  PSC/CUNY used amounts disclosed in the Single-Employer Pension Plan footnote disclosures for the prior comparative periods as a practical expedient for applying the retrospective presentation. 

NOTE 12. SUBSEQUENT EVENTS 

PSC/CUNY has evaluated subsequent events through February 26, 2021 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, 2020 and 2019 

  2020   2019
       
Affiliation fees      
New York State United Teachers $ 6,539,652   $ 6,463,851
American Federation of Teachers 3,256,126   3,147,839
The American Association of University Professors 256,667   256,333
Municipal Labor Committee 43,409   36,464
Other 26,300   30,250
  10,122,154   9,934,737
       
Salaries, employee benefits, and payroll taxes      
Salaries 3,581,906   3,512,710
Payroll taxes 287,494   264,845
Health benefit expense 1,084,419   937,222
Pension benefit expense 783,632   688,975
Other 37,897   47,168
  5,775,348   5,450,920
       
Representational and governance      
Conferences and conventions 101,651   112,429
Elections 11,341   27,572
Committees 1,514   6,541
  114,506   146,542
       
Public relations      
Mobilization and outreach 72,301   123,648
Community relations 20,755   26,851
Cultural activities 3,641   4,378
  96,697   154,877
       
Building expenses      
Rent and services 1,206,265   1,189,874
Real estate taxes 151,278   126,794
Repairs and maintenance 99,698   85,115
  1,457,241   1,401,783
       
       
       
Administrative, office and general      
Office $ 187,987   $ 262,870
Postage 23,120   30,542
Insurance 46,172   49,769
Dues processing 76,357   72,600
Other 5,184   5,020
  338,820   420,801
       
Professional fees      
Legal 351,219   176,065
Consulting 191,088   139,457
Accounting and auditing 35,600   34,600
Computer 155,443   111,018
  733,350   461,140
       
Contract and budget campaigns 317,051   759,168
       
Stipends and reassigned time 458,436   505,851
       
Depreciation expense 54,513   50,127
       
Membership campaign 11,328   31,707
       
Total expenses $ 19,479,444   $ 19,317,653

 

 

 

 

 

 

 


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