PEF Trustees’ Report


Presented to the 34th Annual PEF Convention Syracuse October 14 –17, 2012


By RONALD BROWN, KENNETH JOHNSON, and MAUREEN KELLMAN


Mission: The trustees are charged by the PEF Constitution to periodically review PEF’s financial records, report to the membership any activities not in their 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: • Based on the most recent PEF audit, we observed that


the post-retirement benefit is PEF’s largest liability. Since PEF is self insured, any changes to policies that may increase this liability may become a critical matter for PEF’s survival. • To ensure funds, policies and procedures are being


carried out and are benefitting all members, we recommend annual audits are done for each division and region. • In keeping with our mission of accountability and


transparency, we recommend generic reports and recommendations on the divisional and regional audits be published on the PEF website and in The Communicator. • Finally, we believe an informed membership is a strong membership.


Audit report: On August 15, 2012, the trustees, Secretary-


Treasurer Carlos Garcia and Valerie O’Dell, PEF’s director of finance, met with representatives of Marvin and Company. An overview of PEF’s 2011-12 audit findings were presented. The audit included an examination of PEF


Page 22—The Communicator November 2012


documentation that supported the amounts and disclosures in the PEF consolidated financial statements. Marvin and Company reported PEF’s financial position for fiscal year 2011-12 ended in conformity with Generally Accepted Accounting Procedures (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 2011-12.


PEF’S EXPENSES BY FUNCTIONAL ACTIVITY


Membership Services (on the preceeding chart) include: committee activities, division funding, leadership meetings (Convention and Executive Board), field service expenses and other expenses directly related to membership activities and representation. Administrative & Support (on the preceeding chart)


include: expenses for “behind the scenes” departments such as Accounting, Executive, Membership Information Systems and Mailroom.


PEF Information Line: 1-800-553-2445


TRUSTEES’ REPORT


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