NEWYORK STATE PUBLIC EMPLOYEES FEDERATION AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 2008 and 2007
1. DESCRIPTIONOFORGANIZATIONANDSUMMARYOF existenceorabsenceofdonor-imposedrestrictions. Changesin
SIGNIFICANTACCOUNTINGPOLICIES unrestrictednetassetsincludecertaincontributionswhosedonor
imposedrestrictionsaremetduringthefiscalyear. Whenadonor
TheNewYorkStatePublicEmployeesFederation(PEF)is restrictionexpires,thatis,whenastipulatedtimerestrictionends
affiliatedwiththeAmericanFederationofTeachers(AFT)andthe orpurposerestrictionisaccomplished,temporarilyrestrictednet
ServiceEmployeesInternationalUnion(SEIU). Itisaself- assetsarereclassifiedtounrestrictednetassetsandarereported
governingunitrepresentingpredominantlytheprofessional, intheconsolidatedstatementofactivitiesasnetassetsreleased
scientificandtechnicalemployeesoftheStateofNewYork. The fromrestrictions.
majorityofrevenuesarefrommembershipduesandagencyshop
fees.
IncomeTaxes
Theconsolidatedfinancialstatementsincludetheaccountsof
PEFanditssubsidiary,PEFLandHoldingCorporation. The
PEFisalaborunionexemptfromfederalincometaxunder
accountsofPEFincludeageneralfund,apoliticalactionfund,a
Section501(c)(5)oftheInternalRevenueCode(theCode).
CommitteeonPoliticalEducation(COPE)fundandaplantfund.
However,underSection527oftheCode,PEF'sinvestmentincome
PEFLandHoldingCorporationisanot-for-profitcorporation
fromthePoliticalActionFundissubjecttotax. PEFLandHolding
formedtoholdtitletothelandandofficebuildingusedtohouse
Corporationisatitleholdingcorporationandisexemptfrom
PEF’sheadquarters. Allmaterialinterfundaccountsand
federalincometaxunderSection501(c)(2)oftheCode.
transactionsbetweentheentitieshavebeeneliminatedinarriving
CashEquivalents
attheconsolidatedtotals.
PEFanditsSubsidiaryadheretoU.S.generallyaccepted Forpurposesofthestatementofcashflows,PEFconsidersall
accountingprinciplesasdescribedintheAmericanInstituteof highlyliquidinvestmentswithaninitialmaturityofthreemonths
CertifiedPublicAccountants(AICPA)IndustryAuditand orlesstobecashequivalents.
AccountingGuide, Not-for-Profit Organizations. Netassets,
revenue,expenses,gainsandlossesareclassifiedbasedonthe
InvestmentSecurities
PEFfollowstheprovisionsofStatementofFinancial
AccountingStandards(SFAS)No.124, Accounting for
NEWYORKSTATEPUBLICEMPLOYEES Certain Investments Held by Not-for-Profit Organizations.
FEDERATIONANDSUBSIDIARY
UndertheprovisionsofSFASNo.124,investmentsin
CONSOLIDATEDSTATEMENTSOFACTIVITIES
equitysecuritiesanddebtsecurities(seeNote3)arevalued
MARCH31,2008AND2007
attheirfairvaluebasedonreadilydeterminablequoted
marketprices. Realizedgainsandlossesfromthesaleof
2008 2007 securitiesarerecognizedonthetradedateandare
calculatedbasedoncarryingvalue(market)atthe
ChangesinUnrestrictedNetAssets
Revenuesandgains:
beginningoftheyearorcostifpurchasedduringtheyear.
Membershipduesandagencyshopfees $30,171,562 $28,813,956
Thenetchangeinunrealizedappreciation(depreciation)
Less: fromthebeginningoftheyeartotheendoftheyearis
Divisionaldistributions 1,039,880 1,080,497
Percapitataxes,net 9,328,327 8,787,859
includedinnetunrealizedandrealizedgains(losses)inthe
Affiliationdues 223,136 284,327
consolidatedstatementsofactivities. Interestincomeis
NetMembershipDuesandAgencyShopFees 19,580,219 18,661,273 recognizedasearned.
Othersupport:
Interestincome 229,189 289,353
Property,PlantandEquipmentandDepreciation
Netunrealizedandrealizedgains 215,953 29,623
Gainonsaleoffixedassets – 5,794
Property,plantandequipmentarestatedatcostless
Grantincome 301,784 338,719 accumulateddepreciation. Depreciationisprovidedforin
Advertisingincome 209,163 215,355
Rentalincome 14,234 22,869
amountssufficienttorelatethecostofdepreciableassets
Affiliationincome 170,259 164,716
tooperationsusingthestraight-linemethodoverthe
Otherincome 632,049 949,336 followingestimatedusefullives:
Total 1,772,631 2,015,765
Years
Netassetsreleasedfromrestrictions:
................................................................................................................................
Satisfactionofprogramrestrictions 137,529 78,297
Buildingandimprovements ........31.5
Furniture,fixturesandequipment ...3-10
TotalUnrestrictedRevenues,GainsandOtherSupport 21,490,379 20,755,335 Automobiles ....................3-10
Expenses:
Computerequipment .............3-10
Salaryandbenefitexpenses 14,399,967 13,349,309
Stafftravelandrelatedexpenses 488,704 533,856
Maintenanceandrepairsarechargedtooperations
Programrelatedexpenses 2,646,491 2,698,351 whenincurred;bettermentsandrenewalsarecapitalized.
Operatingexpenses 4,043,403 5,034,995
Whenproperty,plantandequipmentaresoldorotherwise
Depreciation 417,743 428,638
Interestexpense 76,446 111,433
disposedof,theassetaccountandrelatedaccumulated
TotalExpenses 22,072,754 22,156,582 depreciationarerelievedandanygainorlossisincludedin
operations.
Increase(Decrease)inUnrestrictedNetAssetsBeforeSettlement
withAmericanFederationofTeachers (582,375) (1,401,247)
UseofEstimates
ForgivenessofPortionofAmericanFederationofTeachers
JudgmentNetofProvisionsforInterestof$356,841in2008 Managementusesestimatesandassumptionsin
and$428,209in2006 813,901 814,488
preparingfinancialstatements. Thoseestimatesand
Increase(Decrease)inUnrestrictedNetAssets $ 231,526 $ (586,759)
assumptionsaffectthereportedamountsofassetsand
liabilities,thedisclosureofcontingentassetsandliabilities
See accompanying notes to consolidated financial statements.
andthereportedrevenuesandexpenses. Actualresults
coulddifferfromthoseestimates.
Page18—TheCommunicatorFebruary2009 PEFInformationLine:1-800-553-2445
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