PEF Trustees’ Report to 2011 convention delegates
By GAIL NOBLE, OLUBIYI (MR. B) SEHINDEMI and ADAM SUMLIN
Mission: The trustees are charged by the PEF
constitution to periodically review PEF’s financial records, report to the membership any activities not in its best interest and to attend Executive Board meetings. We meet periodically and review, at random, division audits, regional budgets, and expense vouchers. The trustees also review those divisions and regions not in compliance with acceptable PEF financial policies and make appropriate recommendations of action in keeping with PEF policies.
Findings and recommendations: • We reiterate that PEF Executive Board meetings should start
at 1 pm on the first day. This would eliminate one night’s hotel stay and a breakfast and lunch. This would constitute a savings of about $70,000 per year; • We recommend for all Executive Board meetings that double
occupancy be required unless the Executive Board member chooses to pay for a single or have the division pay. Noting that this is a requirement at convention, the same should be administered at the Executive Board meetings. The savings we will achieve from this is approximately $25,000 per year; • We continue to see the post-retirement benefits growing, and
this brings about a major concern for future endeavors. With the financial situation in PEF, this becomes a critical matter for our survival; and • We encourage PEF to expand its “Go Green” program.
Audit report: On August 5, 2011, the trustees, Secretary-Treasurer Arlea
Igoe, Valerie O’Dell, PEF’s director of finance, and Russell Kuon, divisions controller, met with representatives of Marvin and Company. An overview of PEF’s 2010-2011 audit findings were presented. The audit included an examination of PEF documentation that
supported the amounts and disclosures in the PEF consolidated financial statements. Marvin and Company reported PEF’s financial position for fiscal year 2010-2011 ended in conformity with Generally Accepted Accounting Principles (GAAP). They further stated all PEF financial statements reviewed by them supported their opinions and fairly represented PEF’s financial position at the time of the audit for fiscal year 2010-2011. 1. PEF’s expenses by functional activity
For the fourth year in a row, we have seen a slight increase in
our contingency fund. Future anticipated expenditures of this fund require that it be built up as much as possible. We continue to need a means to replenish these funds every year. One option is to ensure that our operating budget is designed to achieve a budget surplus, which would then be transferred into the Contingency Fund after the year-end audit. Existing PEF policy stipulates: “All surplus monies at the end of any fiscal year shall be placed in a fund for emergencies and special needs. Expenditures from this fund shall only be made after approval by a two-thirds vote of the Executive Board.” The following table breaks down the amounts spent over the
last 5 years:
Temporarily Restricted Net Assets: Those assets as of March 31, 2011, that are to be used for a
specific purpose only: A. COPE (voluntary political contributions) $ 173,038 B. Contract Fightback Fund
$ 3,807,566 PEF policy states: “Outside of contract fight-back activities,
the Contract Fightback Fund can only be used to protect the job security of PEF members if approved by a three-quarters vote of PEF’s Executive Board.”
2. Contingency funds
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www.pef.org The Communicator October 2011—Page 13
Trustees’ Report
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