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Home » Content » PSC Financial Audit: August 31, 2021 and 2020

PSC Financial Audit: August 31, 2021 and 2020

Financial Statements With Supplemental Information

August 31, 2021 and 2020

CONTENTS

Independent Auditor’s Report 

Statements of Functional Expenses

Notes to Financial Statements

Supplemental Information 

Schedules of Expenses by Category


INDEPENDENT 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, 2021 and 2020, 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, 2021 and 2020, 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 10, 2022


Professional Staff Congress of the City University of New York

Statements of Financial Position

August 31, 2021 and 2020

  2021 2020
Assets    
Cash and cash equivalents  $1,325,199   $1,237,823 
Investments – at fair value    
Mutual funds  12,620,304   12,367,478 
Investments – other    
Certificates of deposit  992,000   992,000 

Total investments

 13,612,304   13,359,478 
Receivables    
Dues   231,000   167,000 
Due from related entities  218,000   141,000 

Total receivables

 449,000   308,000 
Property and equipment    
Equipment  760,283   731,585 
Leasehold improvements  661,808   658,758 
Furniture and fixtures  346,461   342,580 
   1,768,552   1,732,923 
Less:  accumulated depreciation  (1,520,943)  (1,471,411)
Net property and equipment  247,609   261,512 

Total assets

 $15,634,112   $15,166,813 
Liabilities and Net Assets    
Current liabilities    
Accrued expenses   $338,952   $403,058 
Accrued compensated balances  605,840   589,981 
Due to related entities  1,561,688   1,629,418 
Deferred revenue  168,438   64,119 

Total current liabilities

 2,674,918   2,686,576 
Long-term liabilities    
Deferred rent  $218,242   $410,166 
Unfunded projected pension benefit obligation  5,020,042   4,263,151 

Total long-term liabilities

 5,238,284   4,673,317 

Total liabilities

 7,913,202   7,359,893 
Net assets without donor restrictions  7,720,910   7,806,920 

Total liabilities and net assets

 $15,634,112   $15,166,813 

See accompanying notes to financial statements.


Professional Staff Congress of the City University of New York

Statements of Activities

August 31, 2021 and 2020

  2021 2020
Revenue    
Membership dues  $15,752,687   $16,255,106 
Organizing assistance  3,482,090   3,591,029 
Investment income, net  772,699   742,525 
Rental income  305,859   283,077 
Other income  117,558   55,029 

Total revenue

 20,430,893   20,926,766 
Expenses     
Affiliation fees  9,760,945   10,122,154 
Salaries, employee benefits, and payroll taxes  6,411,134   5,775,348 
Representational and governance  149,528   114,506 
Public relations  69,431   96,697 
Building expenses  1,391,748   1,457,241 
Administrative, office and general  343,025   338,820 
Professional fees  1,026,894   733,350 
Contract and budget campaigns  432,108   317,051 
Stipends and reassigned time  455,106   458,436 
Depreciation expense  49,532   54,513 
Membership campaign  11,370   11,328 

Total expenses 

 20,100,821   19,479,444 
Net increase in net assets before other changes  330,072   1,447,322 
Other changes in net assets    
Unfunded pension benefits obligation adjustments other than net periodic pension service cost  (416,082)  45,710
Net increase (decrease) in net assets  (86,010)  1,493,032 
Net assets without donor restrictions    
Beginning of year  7,806,920   6,313,888 
End of year  $7,720,910   $7,806,920 
 

See accompanying notes to financial statements.


Professional Staff Congress of the City University of New York

Statements of Functional Expenses

August 31, 2021 and 2020 (Next two tables)

  2021
  Total  Member Services   Support Services 
Affiliation fees  $9,760,945   $9,760,945   $-   

Salaries, employee benefits and payroll taxes

 6,411,134   2,846,355   3,564,779 
Representational and governance  149,528   149,528   –   
Public relations  69,431   69,431   –   
Building expenses  1,391,748   617,936   773,812 
Administrative, office and general  343,025   99,630   243,395 
Professional fees  1,026,894   1,026,894   –   
Contract and budget campaigns  432,108   432,108   –   
Stipends and reassigned time  455,106   455,106   –   
Depreciation expense  49,532   –     49,532 
Membership campaign  11,370   11,370   –   

Total expenses

$20,100,821   $15,469,303   $4,631,518 

 

  2020
  Total Member Services Support Services
Affiliation fees  $10,122,154   $10,122,154   $-   
Salaries, employee benefits and payroll taxes  5,775,348   2,461,884   3,313,464 
Representational and governance  114,506   114,506   –   
Public relations  96,697   96,697   –   
Building expenses  1,457,241   621,222   836,019 
Administrative, office and general  338,820   92,205   246,615 
Professional fees  733,350   733,350   –   
Contract and budget campaigns  317,051   317,051   –   
Stipends and reassigned time  458,436   458,436   –   
Depreciation expense  54,513   –     54,513 
Membership campaign  11,328   11,328   –   

Total expenses

 $19,479,444   $15,028,833   $4,450,611 

 

See accompanying notes to financial statements.


Professional Staff Congress of the City University of New York

Statements of Cash Flows

August 31, 2021 and 2020

  2021 2020
Cash flows from operating activities     
Change in net assets  $330,072   $1,447,322 
Adjustments to reconcile change in net assets to net cash    
provided by (used for) operating activities    
Depreciation   49,532   54,513 
Net realized and unrealized gains  (515,015)  (455,685)
Unfunded pension benefit obligation adjustments    
other than net periodic pension service cost  (416,082)  45,710 
Decrease (increase) in assets:    
Dues receivable   (64,000)  (42,000)
Due from related entities   (77,000)  476,400 
Due from other –     90,000 
Increase (decrease) in liabilities:    
Accrued expenses  (64,106)  129,679 
Accrued compensated absences  15,859   (107,833)
Due to related entities  (67,730)  9,203 
Deferred revenue  104,319   64,119 
Deferred rent  (191,924)  (157,061)
Unfunded projected pension benefit obligation   756,891   191,266 
Net cash provided by (used for) operating activities  (139,184)  1,745,633 
Cash flows from investing activities    
Purchase of property and equipment  (35,629)  (157,009)
Purchase of certificates of deposit  (199,000)  (297,000)
Liquidation of certificates of deposit  199,000   297,000 
Sale of investments  944,173   678,254 
Purchase of investments   (681,984)  (1,740,704)

Net cash provided by (used for) investing activities

 226,560   (1,219,459)
Net increase in cash  87,376   526,174 
     
Cash and cash equivalents    

Beginning of year

 1,237,823   711,649 

End of year

 $1,325,199   $1,237,823 

See accompanying notes to financial statements.


PROFESSIONAL STAFF CONGRESS OF THE CITY UNIVERSITY OF NEW YORK

NOTES TO FINANCIAL STATEMENTS

AUGUST 31, 2021 AND 2020

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 $7,720,910 and $7,806,920 for the years ended August 31, 2021 and 2020, 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 $49,532 and $54,513 for the years ended August 31, 2021 and 2020, 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 $605,840 and $589,981 for the years ended August 31, 2021 and 2020, 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, 2021 and 2020. 

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 $218,242 and $410,166 for the years ended August 31, 2021 and 2020, 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, 2021, PSC/CUNY’s cash and certificates of deposit in excess of FDIC coverage totaled $1,075,199 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, 2021 and 2020: 

  2021 2020
Financial assets available within one year:    
Cash and cash equivalents   $1,325,199   $1,237,823 
Investments   13,612,304   13,359,478 
Receivables  449,000   308,000 

Total financial assets

 15,386,503   14,905,301 
Less investments maturing greater than one year  (793,000)  (793,000)
Financial assets available to meet general expenditures within one year  $14,593,503  $14,112,301

As 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, 2021 and 2020, 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, 2021 and 2020: 

  Fair Value Measurements at August 31, 2021
       Total           Level 1          Level 2          Level 3       
Mutual funds  $12,620,304   $12,620,304   $-     $-   
Investments at fair value  $12,620,304   $12,620,304   $-     $-   

 

  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   $-     $-   

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, 2021 and 2020. 

The following are the balances as of or for the years ended August 31, 2021 and 2020 as provided by the Plan’s actuary: 

  2021 2020
Projected benefit obligation  $(10,284,405)  $(10,367,175)
Fair value of plan assets  5,264,363   6,104,024 
Funded status  $(5,020,042)  $(4,263,151)
Accumulated benefit obligation  $(2,657,659)  $(2,004,164)
Amounts recognized in the statement of financial position:    

Noncurrent liabilities

 $(5,020,042)  $(4,263,151)
Amounts in net assets not recognized as components of net periodic benefit cost:    

Accumulated net (loss)

 (2,362,383)  (2,258,987)
Weighted-average assumptions:    

Discount rate (to discount plan benefit obligations)

 2.64%  2.59%

Discount rate (to measure net periodic pension cost)

 2.59%  2.85%

Expected return on plan assets

 7.00%  7.00%

Rate of compensation increase

 4.00%  4.00%
Employer contributions  $420,000   $420,000 
Benefits paid  $2,053,839   $91,497 
Net periodic pension cost – service cost  $760,809   $656,976 
Other components of net periodic pension cost:    

Interest cost

 $265,588   $256,180 

Expected return on assets

 (437,588)  (362,316)

Recognized actuarial (gain) loss

 61,533   75,957 

Recognition of settlement loss

 423,153   –   
   $312,686   $(30,179)
 

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

  2021 2020
     
Changes in net periodic pension cost – service cost:    
   Net periodic pension cost – service cost  $760,809   $656,976 
   Less: Employer contributions  (420,000)  (420,000)
   $340,809   $236,976 

 

Changes recognized in unrestricted net assets other than net periodic pension cost – service cost:    
      Other components of net periodic pension cost   $312,686   $(30,179)

Increase (decrease) in unrecognized accumulated net gain or loss

 103,396   (15,531)
   $416,082   $(45,710)
   $756,891   $191,266 

In 2021 and 2020, PSC/CUNY has recorded a loss of $416,082 and a gain of $45,710, 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, 2021 and 2020, 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, 2021 and 2020: 

    Fair Value Measurements at August 31, 2021
    Total Level 1 Level 2 Level 3
Cash and cash equivalents  2.72%  $143,213   $143,213   $-     $-   
Equities  54.92%  2,891,036   2,891,036   –     –   
U.S Government and Government          
Agency obligations  18.18%  957,006   957,006   –     –   
Mutual funds  24.18%  1,273,108   1,273,108   –     –   
           
   100.00%  $5,264,363   $5,264,363   $-     $-   

 

    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   $-   $-   

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: 

2022  $180,373
2023  $173,133
2024  $287,275
2025  $173,626
2026  $740,535
2027-2031  $1,777,557

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: 

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, 2021 and 2020 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. 

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?
13-2864289 001 Red as of 01/01/21 No Red as of 01/01/20 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
8/31/2021 8/31/2020 8/31/2021 8/31/2020 8/31/2021 8/31/2020
Local 153 Pension Fund $111,767   $126,656  No, Plan year ending 8/31/21. No, Plan year ending 8/31/20. * * 9 9

* The employer contribution rate of the Pension Plan was $284 per week per employee effective June 1, 2021, and $275 effective June 1, 2020. 

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, 2021 and 2020 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
8/31/2021 8/31/2020 8/31/2021 8/31/2020 8/31/2021 8/31/2020
Local 153 Health Fund   $8,302   $9,177  * * 15 15

* 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, 2021 and 2020 were $6,291,585 and $6,539,652, respectively.  As of August 31, 2021 and 2020, PSC/CUNY owed NYSUT $1,020,000 and $1,057,000, respectively, for dues. Dues paid to AFT for the years ended August 31, 2021 and 2020 were $3,126,502 and $3,256,126, respectively. As of August 31, 2021 and 2020, PSC/CUNY owed AFT  $531,000 and $556,000, respectively, for dues. 

Reimbursements from NYSUT for the years ended August 31, 2021 and 2020 were $3,145,604 and $3,319,634, respectively.  As of August 31, 2021 and 2020, NYSUT owed PSC/CUNY 

$186,000 and $116,000, respectively.  Reimbursements from AFT for the years ended August 31, 2021 and 2020 were $336,486 and $271,395, respectively. As of August 31, 2021 and 2020, AFT owed PSC/CUNY $32,000 and $25,000, respectively. 

PSC/CUNY pays NYSUT a monthly fee for dues processing.  Dues processing fees totaled  $72,600 and $76,357 for the years ended August 31, 2021 and 2020, respectively. As of August 31, 2020, PSC/CUNY owed NYSUT $9,807 for dues processing. As of August 31, 2021 and 2020, PSC/CUNY owed NYSUT $1,959 and $1,772 for postage, respectively. 

PSC/CUNY reimburses the Welfare Fund for shared computer services. PSC/CUNY’s portion of shared computer expenses totaled $49,353 and $49,887 for the years ended August 31, 2021 and 2020, respectively.  As of August 31, 2021 and 2020, PSC/CUNY owed the Welfare Fund  $6,876 and $3,937, respectively for shared computer services. As of August 31, 2021 and 2020, PSC/CUNY owed the Welfare Fund $1,853 and $902 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, 2022             $1,309,149

Rent including utilities and maintenance was $1,175,148 and $1,206,265 for the years ended August 31, 2021 and 2020, 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, 2022             $220,877

Total rental income for the years ended August 31, 2021 and 2020 was $305,859 and $283,077, respectively. 

NOTE 10.  LITIGATION 

Certain claims, suits, and complaints arising in the ordinary course of business have been filed or are pending against PSC/CUNY.  In the opinion of PSC/CUNY’s management and legal counsel, the ultimate outcome of these claims will not have a material adverse effect on the financial position of PSC/CUNY. 

NOTE 11.   SUBSEQUENT EVENTS 

PSC/CUNY has evaluated subsequent events through March 10, 2022, the date the financial statements were available to be issued, and they have been evaluated in accordance with relevant accounting standards. 


SUPPLEMENTAL INFORMATION 

Professional Staff Congress of the City University of New York

Schedules of Expenses by Category

Years Ended August 31, 2021 and 2020 

  2021 2020
Affiliation fees    
New York State United Teachers  $6,291,585   $6,539,652 
American Federation of Teachers  3,126,502   3,256,126 
The American Association of University Professors   258,140   256,667 
Municipal Labor Committee  43,688   43,409 
Other  41,030   26,300 
   9,760,945   10,122,154 
Salaries, employee benefits, and payroll taxes    
Salaries   3,850,029   3,581,906 
Payroll taxes  310,872   287,494 
Health benefit expense  1,341,410   1,084,419 
Pension benefit expense  872,576   783,632 
Other  36,247   37,897 
   6,411,134   5,775,348 
Representational and governance    
Conferences and conventions  64,379   101,651 
Elections  84,802   11,341 
Committees  347   1,514 
   149,528   114,506 
Public relations    
Mobilization and outreach  45,588   72,301 
Community relations  23,843   20,755 
Cultural activities –     3,641 
   69,431   96,697 
Building expenses     
Rent and services  1,175,148   1,206,265 
Real estate taxes  125,010   151,278 
Repairs and maintenance  91,590   99,698 
   1,391,748   1,457,241 
Administrative, office and general     
Office  $208,243   $187,987 
Postage   11,848   23,120 
Insurance   46,032   46,172 
Dues processing  72,600   76,357 
Other  4,302   5,184 
   343,025   338,820 
Professional fees    
Legal  350,222   351,219 
Consulting  299,432   191,088 
Accounting and auditing  35,200   35,600 
Computer  342,040   155,443 
   1,026,894   733,350 
Contract and budget campaigns  432,108   317,051 
Stipends and reassigned time  455,106   458,436 
Depreciation expense  49,532   54,513 
Membership campaign  11,370   11,328 
Total expenses  $20,100,821   $19,479,444 

 


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