NEW YORK STATE PUBLIC EMPLOYEES FEDERATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements March 31, 2011 AND 2010
1. DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The New York State Public Employees Federation
(PEF) is affiliated with the American Federation of Teachers (AFT) and the Service Employees International Union (SEIU). It is a self-governing unit representing predominantly the professional, scientific and technical employees of the State of New York. The majority of revenues are from membership dues and agency shop fees.
The consolidated financial statements include the
accounts of PEF and its subsidiary, PEF Land Holding Corporation. The accounts of PEF include a general fund, a political action fund, a Committee on Political Education (COPE) fund and a plant fund. PEF Land Holding Corporation is a not-for-profit corporation formed to hold title to the land and office building used to house PEF’s headquarters. All material interfund accounts and transactions between the entities have been eliminated in arriving at the consolidated totals. PEF and its Subsidiary adhere to U.S. generally
accepted accounting principles as described in the American Institute of Certified Public Accountants (AICPA) Industry Audit and Accounting Guide, Not-for- Profit Organizations. Net assets, revenue, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Changes in unrestricted net assets include certain contributions whose donor imposed restrictions are met during the fiscal year. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the consolidated statement of activities as net assets released from restrictions.
Income Taxes PEF is a labor union exempt from federal income tax
under Section 501(c)(5) of the Internal Revenue Code (the Code). However, under Section 527 of the Code, PEF's investment income from the Political Action Fund is subject to tax. PEF Land Holding Corporation is a title holding corporation and is exempt from federal income tax under Section 501(c)(2) of the Code. Under FASB Accounting Standards Codification
(ASC) Section 740, Income Taxes, the tax status of tax- exempt entities is an uncertain tax position, since events could potentially occur that jeopardize tax-exempt status. Management is not aware of any events that could jeopardize the tax exempt status of either PEF or of the Land Holding Corporation. Therefore, no liability or provision for income tax has been reflected in the consolidated financial statements. PEF’s management believes that it is no longer
subject to income tax examinations relating to its Form 990T for years prior to 2007.
Cash Equivalents For purposes of the statement of cash flows, PEF considers all
highly liquid investments with an initial maturity of three months or less to be cash equivalents.
Investment Securities PEF follows the provisions of U.S. Generally Accepted
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NEW YORK STATE PUBLIC EMPLOYEES FEDERATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED MARCH 31, 2011 AND 2010 2011
Changes in Unrestricted Net Assets Revenues and gains: Membership dues and agency shop fees
Less: Divisional distributions Per capita taxes, net Affiliation dues
Net Membership Dues and Agency Shop Fees
Other support (expenses): Interest income
Net unrealized and realized gains (losses) Gain (loss) on sale of fixed assets Grant income
Advertising income Rental income
Affiliation income Other income Total
Net assets released from restrictions: Satisfaction of program restrictions
Total Unrestricted Revenues, Gains and Other Support
Expenses: Salary and benefit expenses Staff travel and related expenses Program related expenses Operating expenses Depreciation
Interest expense Total Expenses
Increase (Decrease) in Unrestricted Net Assets Before Other Postretirement Benefit-Related Changes Other Than Net Periodic Postretirement Benefit Cost
Other Postretirement Benefit-Related Changes Other Than Net Periodic Postretirement Benefit Cost
Increase (Decrease) in Unrestricted Net Assets Before Settlement with American Federation of Teachers
Forgiveness of Portion of American Federation of Teachers Judgment Net of Provisions for Interest of $356,841 in 2011 and $428,209 in 2010
Increase (Decrease) in Unrestricted Net Assets
Changes in Temporarily Restricted Net Assets Contributions
Net assets released from restrictions
Increase in Temporarily Restricted Net Assets Change in Net Assets
Net Assets, Beginning of Year Net Assets, End of Year
$35,053,378 1,285,892
9,548,690 315,412
23,903,384
186,217 452,296 –
455,116 192,896 46,657
165,653
1,292,085 2,790,920
120,513 26,814,817
19,011,806 517,343
3,023,929 5,003,269 258,392 26,606
27,841,345 (1,026,528) (582,172) (1,608,700) 814,488 (794,212)
$ 103,088 (120,513)
(17,425) (811,637) 956,189
$ 144,552 _________ See accompanying notes to consol idated financial statements.
Accounting Principles (GAAP) in how it accounts for certain investments. Under GAAP, investments in equity securities and debt securities (see Note 3) are valued at their fair value based on readily determinable quoted market prices. Realized gains and losses from the sale of securities are recognized on the trade date and are calculated based on carrying value (market) at the
PEF Information Line: 1-800-553-2445 2010
$34,072,120 1,289,655
10,777,074 272,804
21,732,587
195,550 549,025 28
330,981 195,164 46,657
177,192 871,441
2,366,038 105,089 24,203,714
16,548,878 486,975
2,461,969 4,238,736 329,752 33,596
24,099,906 103,808 (1,060,676) (956,868) 814,488 (142,380)
$ 107,586 (105,089)
2,497
(139,883) 1,096,072
$ 956,189 _________
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