beginning of the year or cost if purchased during the year. The net change in unrealized
appreciation (depreciation) from the beginning of the year to the end of the year is included in net unrealized and realized gains (losses) in the consolidated statements of activities. Interest income is recognized as earned.
Property, Plant and Equipment and Depreciation Property, plant and equipment are
stated at cost less accumulated depreciation. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations using the straight-line method over the following estimated useful lives:
Years
Building and improvements . . . . . . . 31.5 Furniture, fixtures and equipment . . 3-10 Automobiles . . . . . . . . . . . . . . . . . . . 3-10 Computer equipment . . . . . . . . . . . . 3-10
Maintenance and repairs are charged
to operations when incurred; betterments and renewals are capitalized. When property, plant and equipment are sold or otherwise disposed of, the asset account and related accumulated depreciation are relieved and any gain or loss is included in operations.
Use of Estimates Management uses estimates and
assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates.
Board Designated Net Assets Board designated net assets
represents investments earmarked by the PEF Executive Board for funding new contract campaigns, member mobilization or political action. Any use of these investments outside of these designations requires approval by at least three- quarters of the Executive Board.
Bad Debts PEF uses the direct write-off method
of accounting for bad debts. Management believes that any allowance would be immaterial.
Reclassifications Certain 2010 amounts have been
reclassified to conform to the 2011 financial statement presentation.
2. NET MEMBERSHIP DUES AND AGENCY SHOP FEES
Membership Dues and Agency Shop Fees
Revenue is comprised of membership
dues paid by members of PEF and agency shop fees paid by those employees who are members of the bargaining unit but not of PEF. Dues income is recognized based
www.pef.org Net realized gains for the years ended March 31, 2011 and 2010 were $93,469 and
$84,279, respectively. Net unrealized gains for the years ended March 31, 2011 and 2010 were $358,827 and $464,746, respectively.
4. POLITICAL ACTION FUND PEF maintains a Political Action Fund (the Fund) from which political contributions
are disbursed. Contributions are approved by PEF's Executive Board and funded from PEF's unrestricted net assets. The Fund is administered within PEF by the Legislative Department, which is also responsible for other lobbying activities. For the years ended March 31, 2011 and 2010, the Legislative Department has allocated $1,217,003 and $1,175,108 from unrestricted net assets for its operations, including political contributions. During the years ended March 31, 2011 and 2010, $942,002 and $900,108 was allocated for Legislative Department operations. For the years ended March 31, 2011 and 2010, expenses were less than the allocation by approximately $275,000. At March 31, 2011 and 2010, the amount due from the general fund was $673,949.
5. PENSION PLANS Substantially all employees of PEF are eligible to participate in the Affiliates’ Officers
and Employees Pension Fund of SEIU (the Pension Fund). The Pension Fund is a defined benefit multi-employer pension plan. Total pension expense was $1,423,494 and $1,420,569 for the years ended March 31, 2011 and 2010, respectively. These amounts are based upon a contribution rate of 14% of total eligible employee compensation. Actuarial and plan asset data relating to employees of PEF is not available. PEF also has two defined contribution plans covering all full-time employees with
three (3) months of eligible service. Under the USWA plan, PEF shall make an employer matching contribution annually on behalf of each participant in an amount equal to 1% of the active participant’s compensation contributed to the plan and for the Management Confidential plan the matching contribution is 2%. These amounts were negotiated in the USWA/PEF Contract and the Management Confidential Benefit Synopsis and approved by the Executive Board. Effective January 2009, the 1% match for the USWA plan was replaced by a 3% safe harbor contribution. In addition, the 2% matching contribution under the Management Confidential plan continues, but those employees covered under this plan will also receive a 3% safe harbor contribution. The total pension expense for the two defined contribution plans was $399,197 and $395,551 for the years ended March 31, 2011 and 2010, respectively.
U.S. Treasury notes and bills
GNMA pass-thru securities
Equity securities Corporate bonds
Total
upon the pay period for which members' salaries are paid by the State of New York. The biweekly dues and fees are calculated based on .9% of a member's annual compensation for the years ended March 31, 2011 and 2010, respectively.
Divisional Distributions Divisional distributions represent allocations to local organizations of PEF members.
Each division was paid $29 per member up to 200 members and $23.21 for each member in excess of 200, in each calendar quarter for the year ended March 31, 2011.
Per Capita Taxes PEF is required to pay per capita taxes on a monthly basis to AFT and SEIU as a
result of its affiliation with these organizations. Per capita taxes are presented net of the AFT constitutional rebates of $165,653 and $177,192 for the years ended March 31, 2011 and 2010, respectively.
Affiliation Dues Affiliation dues are amounts paid by PEF to participate with other labor organizations
in various labor councils in New York State. 3.
INVESTMENT SECURITIES Investment securities are carried at fair value and consist of the following:
2011 Cost $3,318,392
1,964,212 318,389
$6,178,201 ___________ Fair Value Cost
Federal agency issues –– 66,375 577,208
632,337
2,645,042 342,852
___________ 755,341 2010 Fair Value
$3,404,133 $3,124,724 $3,203,928 104,404
1,837,079 2,177,100 318,385
$7,024,364 $6,101,904 $6,598,456
775,519 337,505
___________ ___________
The Communicator October 2011— Page 23
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