2011
COPE: Political contributions
$173,038 _________
2010 $190,463
11. CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 2011
2010
COPE: Contributions received with donor restrictions
Net assets released from donor restrictions by incurring expenses satisfying the restricted purposes
$103,088 $107,586 _________ _________ $120,513 $105,089 _________ _________
Service cost Interest cost
Net Postretirement Benefit Cost
the years ended March 31, 2011 and 2010 consists of the following components:
2011
$464,997 524,196
59,199 $1,048,392 2010
$250,064 382,790
Amortization of prior service cost –– Recognition of actuarial (gain)/loss
___________ _________
12. CONCENTRATION OF CREDIT RISK PEF maintains its cash accounts in local financial institutions
and at times these balances exceed FDIC insured amounts. At March 31, 2011 the amount subject to credit risk was approximately $3,740,000. PEF maintains investment accounts at a brokerage house.
PEF’s accounts are insured by the Securities Investor Protection Corporation (SIPC) up to $500,000. Additional insurance held by the brokerage firm would cover the remaining balances in the accounts should the brokerage house fail.
13. ACCRUED POSTRETIREMENT BENEFITS Retired PEF employees can convert unused sick leave to cash
for the purpose of paying health insurance benefits. To be eligible, retiring employees must meet one of the three following criteria: sixty-five years of age and three years of service; fifty-five years of age and ten years of service; or age fifty and thirty years of service. PEF recognizes the cost of providing postretirement health insurance benefits by estimating the accumulated postretirement benefit. It is at least reasonably possible that this significant estimate will change within the next year. The following table sets forth the plan’s status reconciled with
the amount shown in PEF's statements of financial position at March 31, 2011 and 2010:
Accumulated Postretirement Benefit Obligation:
Benefit obligation at beginning of year (including Membership Benefits Program) Service cost Interest cost Benefits paid
Plan Amendments
Recognition of actuarial loss (gain)
Total Accumulated Postretirement Benefit Obligation
Plan assets at fair value
Accumulated Postretirement Benefit Obligation in Excess of Plan Assets
Unrecognized prior service cost
Unrecognized actuarial loss
Accrued Postretirement Benefit Obligation
2011
$ 6,909,535 464,997 524,196 (186,392) 1,693,434
__648,485
10,054,255 __________–
10,054,255
___________– $10,054,255
2010
$5,257,345 250,064 382,790 (140,976) -
_1,160,312
6,909,535 _________–
6,909,535
–– __________–
____________ $6,909,535 The estimated current portion of the accrued liability is
$229,615 at March 31, 2011 and is included in accrued expenses. The net periodic postretirement health care benefit cost for
___________
132,677 $765,531
The measurement date used to determine the 2011 amounts
was March 31, 2011. The health care cost rate of increase was assumed to change at rates ranging from 6.6% for 2012, decreasing to 5.8% for 2013, 5.7% for 2014 through 2017, and 5.6% for 2018 through 2021. The health care cost trend rate assumption has a significant effect on the amounts reported. For the years ended March 31, 2011 and 2010, the weighted
average discount rate used in determining the accumulated postretirement benefit obligation was 5.71% and 6.05%, respectively. The following estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
2012 . . . . . . . . . . . . . . . . . . . . . $229,615 2013 . . . . . . . . . . . . . . . . . . . . . 282,613 2014 . . . . . . . . . . . . . . . . . . . . . 321,238 2015 . . . . . . . . . . . . . . . . . . . . . 377,244 2016 . . . . . . . . . . . . . . . . . . . . . 420,682 2017-2021 . . . . . . . . . . . . . . . . $2,255,848
14. SELF-INSURANCE PLAN PEF provides health insurance benefits utilizing a self-funded
plan that covers substantially all full-time employees. The liability for claims incurred and claims incurred but not reported was approximately $75,000 for both years ended March 31, 2011 and 2010. PEF has purchased individual risk and excess risk stop-loss
insurance to limit its exposure to claims in excess of specified amounts.
15. FAIR VALUE OF MEASUREMENT U.S. Generally Accepted Accounting Principles establishes a
three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are described as follows:
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodology used for assets measured at fair value.
Investments are priced daily and valuations are based on quoted market prices.
The methods described above may produce a fair value
calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while PEF believes its
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