The Communicator October 2011

NewYork State Public Employees Federation and Subsidiaries

Financial Statements andOther Financial Information March 31, 2011

11 British American Blvd., Latham, NY 12110 INDEPENDENTAUDITOR’S REPORT

Officers and Trustees New York State Public Employees Federation

We have audited the accompanying

consolidated statements of financial position of the New York State Public Employees Federation and Subsidiary (PEF) as of March 31, 2011 and 2010, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of PEF’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance

with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of PEF’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining,

on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial

statements referred to above present fairly, in all material respects, the financial position of the New York State Public Employees Federation and Subsidiary as of March 31, 2011 and 2010, and the changes in their net assets and their cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. Our audits were conducted for the

purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating statements of financial position and activities on pages 18 through 21 are presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position and results of operations of the individual entities, and are not a required part of the consolidated financial statements. The consolidated detail

NEW YORK STATE PUBLIC EMPLOYEES FEDERATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION MARCH 31, 2011 AND 2010

ASSETS 2011

Current Assets Cash and cash equivalents

Investment securities Undesignated

Board designated

Membership dues and agency shop fees receivable Other receivables Prepaid expenses

Total Current Assets

Property, Plant and Equipment Land

Building Building improvements

Furniture, fixtures and equipment Automobiles

Computer equipment Total

Less accumulated depreciation Net Property, Plant and Equipment

Other Assets Other assets

Due from Membership Benefits - post retirement benefits Total Other Assets

TOTAL ASSETS

$ 4,399,030 3,216,798

3,807,566 411,024

1,779,210 193,907

13,807,535 165,905

1,846,198 1,248,404 2,058,220 36,305

927,842

6,282,874 5,183,108 1,099,766

115,264 836,758

952,022 __________ $15,859,323 2010

$ 3,277,791 3,021,754

3,576,702 281,692

1,519,445 497,541

12,174,925 165,905

1,846,198 1,197,772 2,056,452 36,305

911,938

6,214,570 4,925,409 1,289,161

102,764 555,183

657,947 $14,122,033 __________ See accompanying notes to consolidated financial statements. www.pef.org

Current Liabilities Due to affiliates Due to divisions

Capital lease obligation, current portion Accounts payable

Earned organizational leave Other accrued liabilities Accrued vacation

Accrued postretirement benefits Divisional distributions payable Deferred revenue

Total Current Liabilities

Long-Term Liabilities Capital lease obligation, net of current maturities Accrued postretirement benefits Total Long-Term Liabilities

TOTAL LIABILITIES

Net Assets Unrestricted

Unrestricted - board designated Temporarily restricted Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

schedules of expenses on pages 22 and 23 also are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. The consolidating and other supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the consolidating information and the other supplemental information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

Marvin and Company, P.C. August 5, 2011

NEW YORK STATE PUBLIC EMPLOYEES FEDERATION AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION MARCH 31, 2011 AND 2010

LIABILITIES AND NET ASSETS 2011

$ –

286,628 114,849

2,209,586 292,236

1,300,598 962,891 229,615 273,007 160

5,669,570 220,561

9,824,640 10,045,201

15,714,771

(3,836,052) 3,807,566 173,038 144,552

$15,859,323 __________ $ 2010

814,488 223,222 107,373

2,306,909 377,241

1,002,595 964,859 162,178 117,047 7,165

6,083,077 335,410

6,747,357 7,082,767

13,165,844

(2,810,976) 3,576,702 190,463 956,189

$14,122,033 __________ See accompanying notes to consolidated financial statements. The Communicator October 2011— Page 21

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