the Volume 38
Number 4
April 2008
Reclassify Thousands of Workers the Union office, (212) 677-3900. The elections
are being conducted by the five members of the
General Election Committee: Saundra Galloway,
President’s Message
I t W a s a
Th a n k s ,
G r e a t R u n !
t of the
ec tio n , I b ecame Presiden
I
el
hotly contested e SSEU Local
371 a
n 1982, after a om the st a rt to m a k
determined fr
Union. I was k e it s m embers proud
.
at wou ld m a
great union th President Charles Ensley
s-
ry o f m ilit a n cy and progre
our histo
ls o d et er m in ed to build on k e, not only for h
igher
I was a en t o n st ri
l 371 w
m . In 1 9 6 5 , SSEU and Loca cl ie nts. After a m
onth-long
sivis tmen t fo r o u r
o for better trea een a
contract betw
wages, but als
stru g g le , w e w o n that strike a
union and the
nd negoti
City.
ate d th e fi rs t
“Imined
was deter-
from
public service p o se th e Vietnam Wa
r–a
t union s to o p
e one of the firs n. Through th
e years
La te r, w e b ec a m
ently adopted
by our n a ti o n al u n io
mem- the start to
stand subsequ o n o m ic co n ditions of our
ve the ec
we a g g re ss iv el y fo ught to impro
n et th a t our jobs prov
ided. make SSEU
sa fe ty
ct the social
bers and prote
the past 2 6 y ea rs – la yoffs, attacks
on Local 371 a
allenges over our abili-
g re at ch ever doubted
We fa
il
ce
se
d
rv ic e system, and
contractin g o u t. W e
sta
n
ck ed against us. Alo
ng great Union
th e ci v s were gre a tly
re v a il, ev en when the odd o u r m embers beyon
d the
that would
ty to p itional mo n ey fo r
ren-
y, w e n egotiated add ep s, a ss ignment diffe “
th e w a
a l ec o n o m ic package throu
gh longev it y st
en er gized our mem
bers and make its mem-
gener e organiz ed a n d
we
a ls , an d a n a nnuity plan. W es . W e a re p roud of what bers proud.
ti y victori
er w e fo u g ht and won man
togeth
shed.
have accompli o w ill fa ce challenges, bu
t
ship. They to
o w it ’s tim e for new leader o rt , the Union wil
l grow
But n r continu ed su p p
m co n fi d en t that, with you
Ia
and prosper. fo r y our support an
d the
n k y o u
aying tha
y in g g o o d by e is difficult. S re a t run. Thank y
ou. And
Sa sily. It w a s a g
serve comes ea
opportunity to s strong.
em b er , th e u nion makes u
rem
2
April 2008
The Classes will be held on the following dates: 14 WOMEN’S COMMITTEE MEETING, Union Office,
817 Broadway, 12th Floor, 6:30 p.m.
Tuesday May 27, 2008
Tuesday June 3, 2008 DELEGATE ASSEMBLY, School of the Future,
Monday June 9, 2008 (CPS only)
21 127 East 22nd Street, 6:30 p.m.
Tuesday June 17, 2008 (HCI only)
Time 6:30 P.M. to 8:30 P.M. Published monthly except for a combined issue in July/August by
the Social Service Employees Union Local 371, District Council 37,
AFSCME, AFL-CIO. Subscription Price $2.00 annually. Periodical
postage paid at New York, N.Y.
Fax (212) 673-3813 or mail registration to:
POSTMASTER: Please send address changes to: The Unionist, SSEU
SSEU Local 371 Educational Fund, 817 Broadway, New York, New York 10003 Local 371, 817 Broadway, New York, New York 10003.
Information must be clearly printed to be processed USPS# 348990 (212) 677-3900
President
Charles Ensley
Name _______________________________________________________________ Executive Vice President
Print Last First Yolanda Pumarejo
Secretary-Treasurer
Social Security Number_____________________ Joe Nazario
V.P. Negotiations & Research
Home Anthony Wells
V.P. Organization & Education
Address___________________________________________________Zip_________ Beverly Mallory-Brown
V.P. Grievances & Legal Services
Work Phone ( )___________________________ Home Phone ( )________________ Faye Moore
V.P. Legislation and Political Action
Wana Ulysse
Work Location_____________________________Title______________________________ V.P. Publicity & Community Relations
Michelle Conklin
Trustees
Check exam - CPS or HCI Michael Ballesteros
If you have any further questions, please contact the Educational Fund at (212) 777-9000 ext. 3065 Melva Scarborough
Virgil Brown
Editor
Please return coupon by Friday May 9, 2008 Martin Fishgold
Director of Communications
Linda Schleicher
Members MUST pick up the manuals for the classes at the Union’s Welfare Fund Office Photographer
Charles Brown
located at 817 Broadway N.Y., 15th floor. Training manuals will be available from Metro NY
Editorial Associate Labor
Sarah Ihmoud
8:30 A.M. to 5:45 P.M. from May 21st through May 23rd. Communications
Council
Please note: No manuals will be distributed at the classes. Visit us on the Web at www.sseu371.org
3
The Unionist
4
April 2008
T
he Union hosted its 24th Annual Social
Work Month Celebration on April 11 at DC
37. The theme of this year’s celebration
was “Social Workers: A Unifying Force for
Change,” and honored Union members
who received MSW degrees in 2007, and CCSW
scholarship recipients.
Executive Vice President Yolanda Pumarejo
chaired the event, along with co-chairs Bernice A.
Brown and Dennis McDougale. President Charles
Ensley congratulated the graduates on their
achievement and acknowledged the contributions
of family members who supported their efforts.
Dr. Peter Vaughan, Dean of Fordham Universi- Dr. Peter Vaughan,
ty’s School of Social Service, was the guest speaker. Dean of Fordham
Dr. Vaughan spoke highly of the social service University’s School of
workers represented by Local 371 and praised the Social Service, was
the keynote speaker.
Union for recognizing the group being honored.
Dr. Vaughan recalled his days working at a state
mental health facility, saying he was the first profes- Top photo:
sional worker there to join the union. “Don’t ever Hundreds of
underestimate the power of the union,” said Vaugh- people attended
an. “It gives workers a voice, and the ability to the Social Work
change public and private policy.” Vaughan spoke Month event.
of the challenges the social work profession faces in Photo right: The
Hypnotic Brass
the future. He described social workers as “agents
Ensemble provid-
of change” in “a profession that removes obstacles”
ed the musical
faced by those we serve. He emphasized the impor- entertainment.
tance of humanism and professional values, and
said, “It is necessary to intervene at times, and push
back against those forces [of injustice]. Unless we
change those structures, we will never make a dif-
ference.”
Vaughan also spoke of the need to change the
public’s perception regarding social work, stating,
“We are not only doing society’s good work; we are
doing society’s dirty work. No one else would do
the kind of work we do.” He added, “We must
stand up for ourselves and demand that we be
treated fairly in all aspects of the profession.”
Pumarejo thanked Dr. Vaughan, whose speech
was warmly received by the audience. She then
introduced the graduates, who were presented with
certificates of recognition.
The Hypnotic Brass Ensemble provided the
evening’s musical entertainment. The eight broth-
ers, who grew up playing music together, style
themselves as “superheroes for music,” recapturing
the art of making music with traditional instru-
ments. The band includes four trumpet players, The Union’s Committee of Concerned Social Workers (front) organized the event.
two trombone play- Social Work honorees are pictured in rear of photo.
ers, a tuba player
and a drummer.
Playing “feel-good
music that speaks to
all generations,” the
Photos by Charles Brown
Executive VP Yolanda Pumarejo (center), CCSW chair, congratulates MSW graduates at Social Work Month event.
5
The Unionist
Bits &
Those Who Died In the Triangle Fire are Remembered
A
cold wind blew through Washington more adequate equipment for firefighters.
A
n updated
union representing pre- six construction workers on
edition of
dominantly immigrant Manhattan’s East Side.
“How Can
workers in apparel and tex- Thompson said, “This
I Keep From
tile manufacturing, apparel isn’t just an event to com-
Singing: The
distribution centers, appar- memorate those who died
Ballad of Pete Seeger,” by David King
el retail, hotels, casinos, almost 100 years ago, it is a
Dunaway, was recently re-issued by DaCapo
food services, restaurants, reminder that we have to
Paperback. The book on the legendary singer
airport concessions and remain vigilant.”
and political activist features never-before-
industrial laundries. The speakers mainly
seen photographs and a new forward by
The commemoration focused on the need to unite
Pete Seeger.
opened with singing by the and protect immigrant work-
Seeger was born in 1919, started Harvard
New York City Labor ers who are being subjected
University in 1936, and because school could
Chorus and remarks from to horrible working condi-
not hold his interest, he began a lifetime of
Bruce Raynor, General tions across the country. “As
folk music. There was nothing more impor-
President of UNITE HERE. we look around us, we see
tant in his life than making music and singing
“We’re gathered here, as that immigrants
his songs with other people. With his wife
we do every year, to honor the workers who continue to be the most exploited part of the
Toshi always by his side and providing a
died,” Raynor said. He spoke of the 146 mostly workforce,” said Patricia Smith, Commissioner
foundation for his home and family, Seeger
immigrant women who were trapped inside of the New York State Department of Labor.
and his music could always be found sup-
the factory as it went up in flames. Some of the UNITE HERE is fighting to end the exploita-
porting one cause or another. This book does
workers perished in the fire, others chose to tion and improve the lives of immigrant
a marvelous job of showing that Pete fought
jump out the windows. workers.
injustice with his music all his life, no matter
The Triangle Shirtwaist Factory fire, The ceremony ended with New York City
whether he found it in a union hall, freedom
described by NYC Comptroller William firefighters slowly raising the ladder of their
marches in the South, cotton fields or even
Thompson as, “the largest industrial disaster truck to the highest point the firefighters could
the government of the country he so loved.
in the history of New York City,” resulted in reach in 1911, which was two floors short of
such a high death toll because the workers reaching the stranded Triangle Factory work-
Longshoremen to Close Ports were locked inside the factory by their bosses,
and firefighters did not have the proper equip-
ers. As they did this, students of New York
City’s public schools and workers read the
on West Coast to Protest War ment to reach the top floor. It was a tragedy
that could have been prevented.
names of all 146 people who died in the fire.
The commemoration was a solemn reminder
The fire brought much needed attention to of the tragedy that occurred in 1911 and the
W
hile millions of
working conditions in New York City and ongoing fight which it has come to symbolize.
people world-
wide have across the country. It also created a push for
–Katie Lawson
marched against the
wars in Iraq and
Afghanistan, and last
week's New York
Times/CBS News poll indicated that 81 percent
believe the country is headed in the wrong direc-
Workers Memorial Day Observed April 28
E
ach April 28, since 1989, worksites recognize workers
tion - key concerns being the war and the econo-
unions observe Workers who have been killed or
my - the war machine inexorably grinds on.
Memorial Day as a day to injured on the job. Trade
Amid this political atmosphere, dockworkers of
remember those who have unionists around the world
the International Longshore and Warehouse Union
suffered and died on the job. now mark April 28 as an
have decided to stop work for eight hours in all
As we remember those who International Day of
U.S. West Coast ports on May 1, International
have died in workplace catas- Mourning. Workers Memorial
Workers' Day, to call for an end to the war.
trophes, suffered diseases because of exposure Day is observed in nearly one hundred coun-
In other actions noting the 5th anniversary of
to toxic substances or been injured because of tries. It has been officially endorsed by the
the war, Faye Moore, Local 371’s vice president of
dangerous conditions, we rededicate ourselves International Confederation of Free Trade
grievances, spoke at an anti-war forum marking
to the fight for safe workplaces. As such, a typi- Unions (ICFTU), the International Labour
the 40th anniversary of Dr. Martin Luther King
cal theme for Workers Memorial Day has been Organization, and five countries — Canada,
Jr.'s assassination that was sponsored by U.S.
“Mourn for the Dead, Fight for the Living.” Portugal, Spain, Taiwan and Thailand formally
Labor Against the War at Local 32 BJ of the
April 28 was chosen because it is the recognize April 28 as Workers Memorial Day.
Service Employees International Union. She noted
that many of the social service jobs represented anniversary of the creation of the Occupational
Over the years, numerous communities have
by Local 371 are Federally funded and that war Safety and Health Administration and the day
dedicated plaques, sites and monuments to
spending has cut into the available money. of similar remembrance in Canada. Every year,
workers who have lost their lives because of
people in hundreds of communities and at
Parts of this article are excerpted from a story by dangerous working conditions.
Jack Heyman in the San Francisco Chronicle.
6
April 2008
T
he power of a joint labor-environmental
movement is well illustrated in the semi-
nal book on the subject, “The World is Paul Robinson, Research Director for the their organizations in creating a more environ-
Burning,” by Alex Shoumatoff. When the Southwest Research and Information Center mentally sustainable economy that also produces
book was published in 1990, it helped (SRIC) in Albuquerque, New Mexico, has often good jobs.
raise consciousness about the relationship worked with labor unions on environmental
between labor and the environment. Shoumatoff issues. “Working in alliances and coalitions and Creating Green Jobs
writes about the labor-environmental movement networks is challenging,” he said. Robinson also “Now that there is a national realization that
in Brazil, and gives the synthesis of these two knows it can be reward- global warming is happening,
movements a martyr and a champion, Chico ing. He said that the way there’s new interest in creating
Mendes. to build cooperation is a green economy,” Tolchin said.
As head of the Brazilian Rubber Tappers through “sustained com- The push for a green economy
Union, Chico Mendes sought to unify and edu- munication,” which can has led to the development of
cate the rubber tappers of the Amazon Rainforest lead to success. One aptly titled “green jobs.” Green
in Brazil. Rubber tapping, the practice of remov- example of this was jobs include jobs in the sectors
ing rubber from the bark of trees, is a relatively when the SRIC helped of renewable energy, energy effi-
sustainable and environmentally friendly occupa- union members receive ciency, and organic agriculture,
tion. Because rubber tapping requires live and compensation for radi- to name a few. Some of them are
healthy trees, the rainforest needs to be protected ation exposure. already union jobs. Tolchin said
from deforestation. At that time, and unfortunate- that as more positions of this type
ly still today, the rainforest was being burned and Greening an are created, there is “hope that
cut down to build farms and infrastructure. they can be good union jobs.”
Mendes organized workers to protect the
Urban Setting Although green jobs may be a
rainforest, which their livelihoods depended on. In New York City, relatively new concept in America,
He also united them to fight for fair wages and the environmental it is not new in Brazil. Rubber tap-
labor practices. He envisioned a world where the approach of unions ping is a prime example of a green
poor rubber tappers were not at the mercy of has to be adapted to job. It is both economically and
their corrupt bosses. By unifying the environmen- fit an urban setting. environmentally sustainable. On the
tal and labor movements, Mendes became a revo- In order to get local other hand, the jobs that are created
lutionary leader and international icon. In fact, he city unions by knocking down the rainforest –
would live and die for these causes. Tragically, involved, “you have usually farming and logging- are
Mendes was shot to death as he stepped into his to have a concrete program,” said short term at best. Rainforest soil is
backyard on the night of December 22, 1988. Two Sean Sweeney, Director of the Cornell Global Labor not fertile enough to continually har-
notoriously corrupt ranchers, Darcy Alves Pereira Institute. “The Service Employees International vest crops, and once the trees are
and Darli Alves, were sentenced to 19 years in Union, for example, is trying to get their members gone, what’s left to log? Rubber tapping, on the
prison for their part in the assassination. They to reduce their carbon footprint.” One way is by other hand, preserves the forest and creates jobs
killed Mendes because he protected the people fighting for building cleaners, members of SEIU that can last generations. Because of strong lead-
and the rainforest that they sought to exploit. Local 32 BJ, to work day shifts instead of night ers like Chico Mendes, they are also union jobs.
shifts. Not only are these hours more convenient As Shoumatoff stated, “The American labor
Finding Common Ground for most workers, they eliminate the need for lights movement has not taken on an environmental
The connection between labor and the envi- and appliances which consume energy all night. dimension and they should because they are
ronment is rarely as direct as it was in the case of Local 32 BJ, the largest building service Local being subjected to environmental racism.”
the Brazilian rubber tappers. Furthermore, labor in the country, provides training to its members Shoumatoff points to the “horrendous” environ-
unions and environmentalists have not always on green building and green building mainte- mental problems in the American Southwest, the
been strategic partners. Not only have they had nance. They hold classes which include training same problems Robinson encounters on a daily
trouble finding their common ground, they have about energy and water conservation and energy basis, as an example of environmental racism. The
even come into conflict with one another at times. efficient heating and air conditioning. factories there produce toxic waste, which is then
Often, the lack of cooperation between labor deposited into the water, soil, and air, and
and environmentalists is due to a lack of commu- International Efforts becomes the burden of people in the local com-
nication. “We don’t always know each other,” Important steps are also being taken on a munities. “These are also the people that work in
said Tanya Tolchin, Senior Washington Represe- much larger scale. In March of 2007, the Cornell the factories. They get it!”
ntative of the Sierra Club. “We need to get to Global Labor Institute held an international meet- The Brazilian labor-environmental movement
know one another to learn about each other’s ing between unionists and environmentalists. The is a success story, according to Shoumatoff. “It
priorities.” conference, titled, “A North American Labor continues to this day. The young people are very
Unions can play an important role in educat- Assembly on Climate Crisis: Building a Global concerned.” Shoumatoff said that Mendes
ing their members about environmental problems Movement for Clean Energy” focused in part on “inspired a whole new wave of field biologists
and in advocating for sustainable living in local building a stronger bond between the labor and and ecologists,” and that their environmental
communities. Many unions have already started environmental movements. This March, the first agenda is very much linked with labor move-
to green the labor movement. Farming and agri- National Green Jobs Conference was held in ments. As Tanya Tolchin puts it, “When we work
cultural unions are working to reduce pesticide Pittsburgh. Organized by the Blue-Green Alliance, together, we’re stronger.”
use, which is not only bad for the soil and water, a collaborative effort of the Sierra Club and
but, according to a 2007 Worldwatch Institute United Steelworkers, the conference brought Katie Lawson is a student with the Union Semester
report, also results in the deaths of about 40,000 together unionists, environmentalists, green busi- Program, which is associated with the City University of
workers annually. Pesticide use in growing food ness leaders, and other allies from around the New York. She is presently serving an internship with
products is also unhealthy for consumers. country. Their objective was to discuss the role of Local 371.
7
The Unionist
Benefits Funds
Financial Reports
Welfare Fund Audit
GOULD, KOBRICK & SCHLAPP, P.C., CERTIFIED PUBLIC ACCOUNTANTS NOTES TO FINANCIAL STATEMENTS AT JUNE 30, 2006
Empire State Building, 350 Fifth Avenue, New York, N.Y. 10118-4309 NOTE 1 - DESCRIPTION OF PLAN
Social Service Employees Union The following description of the Social Service Employees Union Local 371 Welfare Fund (the “Plan”) provides only general
Local 371 Welfare Fund information. Participants should refer to the Plan’s benefit booklet and its Summary Plan Description for a more complete descrip-
tion of the Plan’s provisions.
817 Broadway, New York, New York 10003
General: The Plan was established in 1965 for the purpose of providing health care benefits to eligible employees covered by
the collective bargaining agreement between the Social Service Employees Union Local 371 AFSCME, AFL-CIO (the “Union”) and
INDEPENDENT AUDITOR’S REPORT the City of New York (the “Employer”). It is not subject to the provisions of the Employee Retirement Income Security act of 1974
(ERISA), as amended.
We have audited the accompanying statements of benefit obligations and net assets available for benefits of the Social Service Plan Administration: The administration of the Plan is the responsibility of a board of trustees comprised of seven trustees,
Employees Union Local 371 Welfare Fund as of June 30, 2007 and June 30, 2006 and the related statements of changes in ben- six of whom are elected by the general membership of the Union and the seventh being the President of the Union. The Plan’s invest-
efit obligations and in net assets available for benefits for the years then ended. These financial statements are the responsibility of ments are managed by an independent investment manager who has full discretion and authority to effect transactions for the ben-
the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. efit of the Plan. The Plan’s investments are held separately by a custodian.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are Benefits: The Fund provides health benefits (prescription drugs, dental, optical, prosthetic appliance, diagnostic examina-
free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in tions, podiatry, hearing aid and abortion) and disability, pension and health insurance counseling, burial and life insurance ben-
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by man- efits to full time participants of the Plan and to their beneficiaries and covered dependents. Part time participants are provided den-
agement, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis tal, drug, optical, podiatry and life insurance benefits.
for our opinion. During the year the following experience rated insured benefit was in effect:
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial status of the Social
Service Employees Union Local 371 Welfare Fund as of June 30, 2007 and June 30, 2006 and the changes in its financial sta- Insurer Benefit
tus for the years then ended in conformity with accounting principles generally accepted in the United State of America. Prudential Insurance Company of America Life Insurance
During the year the following administrative benefit contract was in effect:
December 28, 2007 GOULD, KOBRICK & SCHLAPP, P.C.
Third Party Administrators Benefit
MedcoHealth and Express Scripts Prescription Drug
STATEMENTS OF BENEFIT OBLIGATIONS
The Plan operates a medical facility that provides dental care and podiatry benefits. As an alternative to the regular schedule of
AND NET ASSETS AVAILABLE FOR BENEFITS benefits, participants can elect these services with no out-of-pocket costs.
AT JUNE 30, 2007 AND 2006
Funding: Employer contributions are made by the Employer to the Social Service Employees Union Local 371 Administrative Fund (the
2007 2006 “Administrative Fund), a related organization. The Plan receives, on an as needed basis, an allocation of these contributions (See Note 6).
Plan Termination: In the event of termination of the Plan, the Trust Agreement requires that the trustees pay all obligations
of the Plan and shall distribute and apply any remaining surplus in such a manner as will, in their opinion, best effectuate the pur-
BENEFIT OBLIGATIONS pose of the Plan. In no circumstances shall any funds revert or accrue to the benefit of the Union or the Employer.
Health benefits currently payable & claims incurred but not reported $1,975,009 $2,303,537 Other: Although they have not expressed any intention to do so the Plan’s Board of Trustees has the right under the Plan to
Insurance premiums payable 116,561 152,508 modify the Trust and to terminate the Plan.
____________ ____________
Total Benefit Obligations 2,091,570
____________ 2,456,045
____________ NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ASSETS Basis of Accounting: The financial statements were prepared on the accrual basis of accounting.
Administrative Expenses: The Administrative Fund, pays all administrative expenses of the Plan, other than third party
Investments, at fair value 142,841 1,069,990 administrative fees.
____________ ____________
Receivables:
Valuation of Investments: Investments are stated at fair value. If available, quoted market prices are used to value invest-
Social Service Employees Union Local 371 Administrative Fund 1,820,872 2,239,146 ments. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the
Other 650,926 2,644 year. Investments traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at
Accrued investment income 1,332 2,305 the average of the last reported bid and asked prices. Securities that have no quoted market price are valued at their estimated fair
value. In general, short-term investments, which are readily convertible into cash, are carried at cost, which approximates fair values.
____________ ____________ Fixed Assets and Depreciation: Furniture, equipment and improvements are stated at cost less depreciation accumulat-
Total Receivables 2,473,130 2,244,095 ed since acquisition and does not purport to represent replacement or realizably value. All assets are depreciated over estimated
____________ ____________
useful lives using the straight-lie method. Expenditures for normal repairs of equipment are charged to current operations. All other
Other Assets: expenditures for fixed assets are capitalized.
Fixed assets, net of accumulated depreciation 137,782 43,639 Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles
Prepaid expenses 0 54,767 requires Fund management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclo-
____________ ____________ sure of contingent assets and liabilities at the date of the financial statements and the reported amounts of changes in net assets
Total Other Assets 137,782 98,406 available for benefits during the reporting period. Actual results could differ from those estimates.
____________ ____________ Other Plan Benefits: Plan obligations at June 30 for health claims incurred by active participants but not reported at that date
Total Assets 2,753,753 3,412,491 and for future disability payments at June 30 are estimated by the Plan’s actuary in accordance with accepted actuarial principles.
____________ ____________
NOTE 3 - TAX STATUS
LIABILITIES The Trust established under the Plan to hold the Plan’s assets is intended to be qualified pursuant to Section 501(c)(9) of the
Cash, operating accounts overdraft 570,937 789,455 Internal Revenue Code, as amended and, accordingly, the trust’s net investment income is exempt from income taxes. The Plan has
Due to Social Service Employees Union Local 371 80,082 107,586 obtained a favorable tax determination letter from the Internal Revenue Service, and Plan management believes that the Trust, as
amended, continues to qualify and to operate in accordance with applicable provisions of the Internal Revenue Code.
Accrued administrative expenses 11,164 59,405
____________ ____________
NOTE 4 - CONCENTRATION OF CREDIT RISK
Total Liabilities 662,183 956,446
____________ ____________ Financial instruments that subject the Plan to concentration of credit risk include cash and short-term investments. The Plan main-
tains accounts at high quality financial institutions. While the Plan attempts to limit any financial exposure, its cash deposit balances
NET ASSETS AVAILABLE FOR BENEFITS 2,091,570 2,456,045 may, at times, exceed federally insured limits. Short-term investments are not covered by the Federal Deposit Insurance Corporation.
NOTE 5 - RISKS AND UNCERTAINTIES
EXCESS OF NET ASSETS AVAILABLE FOR BENEFITS
Due to various risks (e.g., interest rate, market and credit risks) associated with certain investments and the level of uncertain-
OVER BENEFIT OBLIGATIONS $____________
0 $ 0 ty related to changes in the value of investments, it is at least reasonably possible that changes in the values of investments will
____________
____________ ____________ occur in the near term that could materially affect the amounts reported in the a statement of net assets available for benefits.
The balance of claims incurred but not reported is reported based on certain assumptions, which are subject to change. Due
to uncertainties inherent in the estimation and assumptions process, it is at least reasonably possible that changes in these estimates
STATEMENTS OF CHANGES IN BENEFIT OBLIGATIONS and assumptions in the near term would be material to the financial statements.
AND IN NET ASSETS AVAILABLE FOR BENEFITS NOTE 6 - AGREEMENTS AND TRANSACTIONS WITH RELATED PARTIES
FOR THE YEARS ENDED JUNE 30, 2007 AND 2006 The Trustees of the Social Service Employees Union Local 371 Administrative, Educational, Legal Services and Welfare Funds
decided that to simplify operations and record keeping, all administrative expenses of the above-mentioned benefit plans would
be paid by the Administrative Fund.
2007 2006 As stated in Note 1 the Administrative Fund is the recipient of employer contribution. These contributions are then allocated
NET INCREASE (DECREASE) IN BENEFIT OBLIGATIONS on an as needed basis to cover the costs of the Plan’s benefit programs and related expenses.
Health benefits currently payable & claims incurred but not reported $ (328,528) (33,960)) The Plan reimburses the Union for 50% of the Union’s cost of the Health and Safety Coordinator’s payroll.
Insurance premiums payable (35,947) 15,267 NOTE 7 - INVESTMENTS
_____________ ______________
Net (Decrease) in Benefit Obligations (364,475) (18,693) The following summary reflects investments held at June 30, 2007 and 2006:
_____________ _____________
ADDITIONS TO NET ASSETS ATTRIBUTED TO 2007 2006
Employer contribution allocation 19,210,654 18,526,878 Cash and cash equivalents 141,501 503,402
Other Contributions 21,452 26,274 Investments at fair value as
_____________ _____________
determined by quoted
Total Contributions 19,232,106 18,553,152
_____________ _____________ market prices
Investment income: U.S. Government 1,340 1,631
Interest, dividends and other 43,432 41,962 Domestic equities $0 $564,957
_________ _________
Net appreciation (depreciation) in fair value of investments (1,394) 97,849
_____________ _____________) Totals $142,841 $1,069,990
42,038 139,811 _________ _________
_________ _________
Less - Investment fees 8
_____________ 7
_____________ The following investments, at fair value, represent five percent (5%) or more of Fund’s net assets:
Net Investment Income 42,030
_____________
139,804
_____________ Shares/Par Value Investment Fair Value
Other income 0 467,016 $125,234 Amalgamated Bank of NY money market $125,234
_____________ _____________
During the years ended June 30, 2007 and 2006, the Plan’s investments (including investments bought, sold and held during the
) Total Additions 19,274,136 19,159,972
year appreciated (depreciated) in fair value as follows:
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO) 2007 2006
Benefits paid 16,773,731 16,155,312 Investments at fair value as determined
Dental facility 2,692,293 2,844,601 by quoted market prices:
Health and safety coordinator 104,082 131,586 Domestic equities $(1,382) $97,895
_____________ _____________
Total Benefits Paid 19,570,106 19,131,499 U.S. Government (12) (46)
_________ _________
Third party benefit provider fees 68,505 47,166 Totals $(1,394) $97,849
_____________ _____________ _________ _________
_________ _________
Total Deductions 19,638,611 19,178,665
_____________ _____________ NOTE 8 - FIXED ASSETS
Net (decrease) in net assets available for benefits (364,475) (18,693)
_____________ _____________ Fixed assets at June 30, 2007 and 2006 by classification are summarized as follows:
Net increase (decrease) in net assets available for benefits 2007 2006
over benefit obligations 0) 0
Leasehold improvements 472,465 394,635
Excess of net assets available for benefits over benefit obligations:
Furniture, fixtures and equipment 165,172 136,241
Beginning 0) 0 _________ _________
_____________ _____________
Ending $_____________
0) $_____________
0 637,637 530,876
8
April 2008
Administrative Fund
GOULD, KOBRICK & SCHLAPP, P.C., CERTIFIED PUBLIC ACCOUNTANTS NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Empire State Building, 350 Fifth Avenue, New York, N.Y. 10118-4388 Basis of Accounting: The financial statements were prepared on the accrual basis of accounting.
Value of Investments: Investments are stated at fair value. If available, quoted market prices are used to value investments.
Social Service Employees Union Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the year.
Local 371 Administrative Fund Investments traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the aver-
817 Broadway, New York. New York 10003 age of the last reported bid and asked prices. Securities that have no quoted market price are valued at their estimated fair value. In gen-
eral, short-term investments, which are really convertible into cash, are carried at cost, which approximates fair values.
INDEPENDENT AUDITOR’S REPORT Fixed Assets and Depreciation: Furniture, equipment and improvements are stated at cost less depreciation accumulat-
We have audited the accompanying statements of net assets available for benefits of the Social Service Employees Union Local 371 ed since acquisition and does not purport to present replacement or realizable value. All assets are depreciated over estimated
Administrative Fund as of June 30, 2007 and 2006 and the related statements of changes in net assets available for benefits for the years useful lives using the straight-line method. Expenditures for normal repairs of equipment are charged to current operations. All other
then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these expenditures for fixed assets are capitalized.
financial statements based on our audits. Administrative Expenses: As stated in Note 1 the Fund pays all administrative expenses of the Social Services Employees
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards Union Local 371 Educational, Legal Services, Welfare, and Staff Pension Funds.
require that we plan and perform our audits to obtain reasonable assurance about whether the financial statements are free of material Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires
misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Fund management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of con-
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the tingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the report-
overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. ing period. Actual results could differ from those estimates.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of
the Social Service Employees Union Local 371 Administrative Fund as of June 30, 2007 and 2006 and the changes in net assets avail- NOTE 3 - TAX STATUS
able for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. The Trust established under the Plan to hold the Plan’s assets is intended to be qualified pursuant to Section 501(c)(9) of the
Internal Revenue Code, as amended and, accordingly, the trust’s net investment income is exempt from income taxes. The Plan has
January 4, 2008 GOULD, KOBRICK & SCHLAPP, P.C. obtained a favorable tax determination letter from the Internal Revenue Service, and Plan management believes that the Trust, as
amended, continues to qualify and to operate in accordance with applicable provisions of the Internal Revenue Code.
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS NOTE 4 - RISKS AND UNCERTAINTIES
AT JUNE 30, 2007 AND 2006 The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, mar-
2007 2006 ket, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that
ASSETS changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts
Investments, at fair value $5,657,975 $1,117,794 reported in the statement of net assets available for benefits.
____________ ____________ The Plan’s allocations of employer contribution income and the resulting balances due from these related organizations are
Receivables: based on certain assumptions, which are subject to change. Due to uncertainties inherent in the estimations and assumptions pro-
Employer contributions 5,285,386 5,359,036 cess, it is at least reasonably possible that changes in these estimates and assumptions in the near term could be material to the
financial statements.
Accrued investment income 46,844 6,021
Due from related organizations: NOTE 5 - AGREEMENTS AND TRANSACTIONS WITH RELATED ORGANIZATIONS
Social Service Employees Union Local 371 AFSCME, AFL-CIO 18,816 112,250 The Trustees of the Social Service Employees Union Local 371 Administrative, Educational, Legal Services and Welfare Funds decided
Social Service Employees Union Local 371 that to simplify operations and record keeping, administrative expenses of the above-mentioned benefit plans would be paid by the Plan.
As stated in Note 1 the Plan is the recipient of employer contributions. These contributions are then allocated on an as need
Annuity Fund 1,566 17,242 basis to cover the costs of each Plan’s benefit plans.
Staff Pension Plan 0
____________ 14,262
____________ NOTE 6 - PENSION BENEFITS PLANS FOR EMPLOYEES
Total Receivables 5,352,612
____________ 5,508,811
____________ The Funds’ eligible employees are covered by the Social Services Employees Union Local 371 Funds’ Staff Pension Plan, which
is a defined contribution profit sharing plan.
Other assets: The contributions to this plan were $135,842 and $132,966 for the years ended June 30, 2007 and 2006, respectively.
Fixed assets, net of accumulated depreciation 75,323 60,837 NOTE 7 - INVESTMENTS
Prepaid expenses 55,190 56,885 The following summary reflects investments held at June 30, 2007 and 2006:
Cash, operating accounts 11,620
____________ 11,671
____________ 2007 2006
Cash and cash equivalents $ 1,424,410 $ 430,427
Total Other Assets 142,133
____________ 129,393
____________ Investments at fair value as
Total Assets 11,152,720 6,755,998 determined by quoted market prices:
____________ ____________
U.S. Government $4,233,565 $687,367
_____________ ___________
LIABILITIES
Totals $5,657,975 $1,117,794
Due to related organizations: _____________ ___________
Social Service Employees Union Local 371:
The following investments, at fair value, represent five percent (5%) or more of Fund’s net assets:
Welfare Fund 1,820,872 2,239,146
Legal Services Fund 90,029 89,381 Par Value Investment Due Date Interest Rate Fair Value
Educational Fund 64,806 63,438 $1,007,501 SEI Cash Plus Treasury Fund N/A variable $1,007,501
Staff Pension Plan 4,248 0 $ 435,000 US Treasury Note 06/15/09 4.000% $ 427,896
Payroll 162,020 153,500 $416,909 Amalgamated Bank of N.Y. savings account N/A variable $ 416,909
Accrued administrative expenses 89,726
____________ 74,978
____________ $During the years ended June 30, 2007 and 2006, the Plan’s investments (including investments bought, sold and held during
the year) appreciated (depreciated) in fair value as follows:
Total Liabilities 2,231,701
____________ 2,620,443
____________ 2007 2006
Investments at fair value as determined by quoted
NET ASSETS AVAILABLE FOR BENEFITS $8,921,019
____________ $4,135,555
____________ market prices:
____________ ____________
Common stock 8,206 0
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS U.S. Government (14,924)
__________ (15,460)
__________
FOR THE FISCAL YEARS ENDED JUNE 30, 2007 AND 2006 Net Fixed Assets $(6,708)
__________ $(15,460)
__________
2007 2006 NOTE 8 - FIXED ASSETS
ADDITIONS TO NET ASSETS ATTRIBUTED TO Fixed assets at June 30, 2007 and 2006 by classification are summarized as follows:
Employer contributions $30,248,445 $27,105,757 2007 2006
Other contributions 81,696
____________ 100,201
____________ Equipment $171,687 $233,705
Total Contributions 30,330,141 27,205,958 Furniture and fixtures 49,810 44,405
____________ ____________
Leasehold improvements 52,791
__________ 50,181
__________
Investment income:
Interest and dividends 131,608 39,467 $274,288 $338,684
Net (Depreciation) in fair value of investments (6,708)
____________ (15,460)
____________ Less - accumulated depreciation 198,965
__________ 277,847
__________
124,900 24,007 Net Fixed Assets $75,323
__________ $60,837
__________
Less - Investment fees 12,806 8,343 __________ __________
____________ ____________
Net Investment Income 112,094 15,664 NOTE 9 - LEASE COMMITMENTS
____________ ____________ The following are the Fund’s future minimum lease obligations at June 30, 2007:
Total Additions 30,442,235
____________ 27,221,622
____________ Totals Facilities Equipment
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO
Employer contributions allocated to Social Service Employees Periods ending June 30, 2008 $337,236 $319,827 $17,409
Union Local 371: 2009 345,180 332,007 13,173
Welfare Fund 19,210,654 18,526,878 2010 339,897 332,007 7,890
Legal Services Fund 3,679,648 3,611,202 2011 338,032 333,112 4,920
Educational Fund 346,368 391,531 2012 350,193 345,273 4,920
_____________ ______________
Thereafter 317,731 316,501 1,230
Total Contributions Allocated 23,236,670 22,529,611
__________ __________ _________
Administrative expenses 2,420,101
_____________ 2,352,462
______________ Aggregate Future Minimum Rentals $2,028,269
__________ $1,978,727
__________ $49,542
_________
Total Deductions 25,656,771
_____________ 24,882,073
______________ __________ __________ _________
Net increase in net assets available for benefits 4,785,464 2,339,549 The Plan and related benefit plans have sublease agreements with the Union (a related party) to rent office facilities.
Net assets available for benefits:
Beginning 4,135,555 1,796,006 NOTE 10 - ADMINISTRATIVE EXPENSES
_____________ ______________
2007 2006
Ending $8,921,019
_____________ $4,135,555
______________ Payroll $1,471,554 $1,438,827
Professional fees:
NOTE 1 - DESCRIPTION OF PLAN Other consultants 100,000 100,000
The following description of the Social Service Employees Union Local 371 Administrative Fund (the “Fund”) provides only gen- Legal 73,781 73,094
eral information. Auditing 45,750 45,750
General: On July 19, 1973, the Social Service Employees Union Local 371 (the “Union”) entered into an Agreement and Computer and other consultants 32,460 40,253
Declaration of Trust establishing the Social Service Employees Union Local 371 Administrative Fund (the “Fund”). The purpose of the Fund Actuarial and consulting 29,333 38,482
is to collect employer contributions received pursuant to a collective bargaining agreement between the Fund, the Union and the City of Rent and utilities 249,769 244,212
New York (the “Employer”) and then to remit these contributions to the Union’s Benefit Plans and to pay all administrative expenses of those
plans. The Fund is not subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. Stationery, printing, postage and supplies 174,523 153,290
Plan Administration: The administration of the Plan is the responsibility of a board of trustees comprised of five trustees, Equipment rental, repairs and maintenance 80,465 82,534
four of who are appointed by the executive committee of the Union and the fifth being the President of the Union. The investments Telephone 35,850 32,942
of the Fund are managed by an investment advisor and maintained by a separate Plan custodian. Insurance 30,200 21,197
Benefits: The Fund does not provide benefits directly to covered members. Employer contributions are allocated to the Social Depreciation 25,006 26,721
Service Employees Union Local 371 Welfare, Educational and Legal Services Funds on an as needed basis to support their pro- Storage 23,507 20,011
grams of benefits.
Funding: Contributions were made by the City of New York for covered participants based upon an annual per member Trustee elections 21,229 0
amount. The contribution rate is determined by the collective bargaining agreement in effect at the time. Interest and bank charges 15,314 20,720
The Plan also receives contributions on behalf of the employees of the Union and Fund that are provided coverage under the Union’s Benefit Plans. Other general and administrative 5,878 8,503
Plan Termination: In the event of termination of the Fund, the Trust Agreement requires that the trustees pay all obligations Trustee meetings and educational expenses 5,482 5,926
of the Fund and shall distribute and apply any remaining surplus in such a manner as will, in their opinion, best effectuate the pur- ____________ ____________
pose of the Fund. In no circumstances shall any funds revert or accrue to the benefit of the Union or the City of New York. $2,420,101
____________ $2,352,462
____________
Other: Although they have not expressed any intention to do so the Plan’s Board of Trustees has the right under the Plan to terminate the Plan
and to modify benefits provided to participants.
9
The Unionist
Educational Fund
GOULD, KOBRICK & SCHLAPP, P.C., CERTIFIED PUBLIC ACCOUNTANTS General: The Plan was established in 1965 for the purpose of providing educational benefits to eligi-
Empire State Building, 350 Fifth Avenue, New York, N.Y. 10118-4309 ble employees covered by the collective bargaining agreement between the Social Service Employees Union
Local 371 (the “Union”) and the City of New York (the “Employer”). It is not subject to the provisions of the
Social Service Employees Union Employee Retirement Income Security Act of 1974 (ERISA), as amended but voluntarily files Form 5550.
Local 371 Educational Fund Plan Administration: The administration of the Plan is the responsibility of a board of trustees com-
817 Broadway, New York. New York 10003 prised of seven trustees, six of whom are elected by the general membership of the Union and the seventh
being the President of the Union.
INDEPENDENT AUDITOR’S REPORT Benefits: The Plan provides a schedule of reimbursements for job-related courses, conferences, etc. The
We have audited the accompanying statements of benefit obligations and net assets available for benefits of the Social Service Fund also provides its own training courses at no cost to the members.
Employees Union Local 371 Educational Fund as of June 30, 2007 and 2006 and the related statements of changes in benefit obliga- Funding: Employer contributions are made by the City of New York to the Social Service Employees Union Local
tions and in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s man- 371 Administrative Fund (the “Administrative Fund”), a related organization. The Plan receives, on an as needed basis,
agement. Our responsibility is to express an opinion on these financial statements based on our audits. an allocation of these contributions (see Note 4).
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those stan- Plan Termination: In the event of termination of the Plan, the Trust Agreement requires that the trustees
dards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of mate- pay all obligations of the Fund and shall distribute and apply any remaining surplus in such a manner as will,
rial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial state- in their opinion, best effectuate the purpose of the Fund. In no circumstances shall any funds revert or accrue
ments. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as to the benefit of the City of New York or the Union.
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. Other: Although they have not expressed any intention to do so the Plan’s Board of Trustees has the right
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial status of the Plan as of under the Plan to modify the Trust and to terminate the Plan.
June 30, 2007 and 2006 and the changes in its financial status for the years then ended in conformity with accounting principles gen- NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
erally accepted in the United States of America. Basis of Accounting: The records of the Plan are maintained on the accrual basis of accounting.
November 10, 2007 GOULD, KOBRICK & SCHLAPP, P.C. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting
principles requires Fund management to make estimates and assumptions that affect the reported amount of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the report-
STATEMENTS OF BENEFIT OBLIGATIONS ed amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
AND NET ASSETS AVAILABLE FOR BENEFITS Plan Benefits: Estimated liabilities for benefits incurred but not reported were estimated at 12.5% of ben-
AT JUNE 30, 2007 AND 2006 efits paid less actual accruals for benefits payable.
2007 2006 Administrative Expenses: The Administration Fund pays all administrative expenses of the Plan.
BENEFIT OBLIGATIONS
Program expenses currently payable $51,239 $57,767 NOTE 3 - TAX STATUS
Claims incurred but not reported 2,134
_________ 2,134
_________
Total Benefit Obligations 53,373 59,901 The Trust established under the Plan to hold the Plan’s assets is qualified pursuant to Section 501(c)(3) of the
_________ _________ Internal Revenue Code, as amended and, accordingly, the trust’s net investment income is exempt from income taxes.
ASSETS The Plan has obtained a favorable tax determination letter from the Internal Revenue Service, and Plan management
Receivables:
Social Service Employees Union Local 371 Administrative Fund 64,806
_________ 63,438
_________ believes that the Trust, as amended, continues to qualify and to operate in accordance with applicable provisions of
Total Assets 64,806 2,134 the Internal Revenue Code.
_________ _________
LIABILITIES NOTE 4 - AGREEMENTS AND TRANSACTIONS WITH RELATED PARTIES
Cash, operating accounts overdraft 11,433
_________ 3,537
_________ The trustees of the Social Service Employees Union Local 371 Administrative, Educational, Legal Services
NET ASSETS AVAILABLE FOR BENEFITS 53,373
_________ 59,901
_________ and Welfare Funds decided that to simplify operations and record keeping all administrative expenses of the
EXCESS OF NET ASSETS AVAILABLE FOR BENEFITS above-mentioned benefit plan would be paid by the Administrative Fund.
OVER BENEFIT OBLIGATIONS 0
$_________ $ 0
_________ As stated in Note 1 the Administrative Fund is the recipient of employer contributions. These contributions are
_________ _________ then allocated on an as needed basis to cover the costs of the Plan’s benefit programs and related expenses.
STATEMENTS OF CHANGES IN BENEFIT OBLIGATIONS NOTE 5 - RISKS AND UNCERTAINTIES
AND IN NET ASSETS AVAILABLE FOR BENEFITS The balance of claims incurred but not reported is reported based on certain assumptions, which are subject to
FOR THE FISCAL YEARS ENDED JUNE 30, 2007 AND 2006 change. Due to uncertainties inherent in the estimations and assumptions process, it is at least reasonably possible
that changes in these estimates and assumptions in the near term would be material to the financial statements.
2007 2006
NET INCREASE (DECREASE) IN BENEFIT OBLIGATIONS NOTE 6 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
Program expenses currently payable (6,528) 4,104
Claims incurred but not reported The following is a reconciliation of net assets available for benefits per the financial statements to Form 5500:
___________0 (294)
___________ June 30,
Net Increase (Decrease) in Benefit Obligations (6,528)
___________ 3,810
___________ 2007 2006
ADDITIONS TO NET ASSETS ATTRIBUTED TO Net assets available for benefits per the financial statements $ 53,373 $ 59,901
Employer contribution allocation 346,368
___________ 391,531
___________ Less - Benefit obligations currently payable 53,373
___________ 59,901
___________
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO Net assets available for benefits per the Form 5500 $ 55 ,00
___________ $ 0
___________
Benefits paid: ___________ ___________
Tuition reimbursements 322,843 364,524 The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Civil Service examination preparation courses 14,877 8,144 Year Ended June 30,
Dues for professional organizations 8,942 7,052
Fees for job related conferences 6,234 7,789 2007 2006
Benefits paid per the financial statements $352,896 $387,721
v Other Benefits 0
___________ 212
___________ Add - Benefits obligations currently payable, end of year: 53,373 59,901
Total Deductions 352,896
___________ 387,721
___________ Less - Benefit obligations currently payable, beginning of year: (59,901) (56,091)
___________ ___________
Net increase (decrease) in net assets available for benefits (6,528)
___________ 3,810
___________ Benefits paid per Form 5500 $346,368
___________ $___________
391,531)
___________ ___________
Net increase (decrease) in excess of net assets available for
benefits over benefit obligations 0 0 Amounts currently payable to or for participants, dependents and beneficiaries are recorded on the Form
Excess of net assets available for benefits over benefit obligations: 5500 for benefits that have been processed and approved for payment prior to June 30, but not yet paid as of
Beginning 0
_____________ 0
______________ that date, and for estimates of claims incurred but not yet reported to the Plan.
Ending $0
_____________ $0
______________
_____________ ______________
NOTE 1 - DESCRIPTION OF PLAN
The following description of the Social Service Employees Union Local 371 Educational Fund (the “Fund”)
provides only general information. Participants should refer to the benefit booklet and its Summary Plan
Description for a more complete description of the Plan’s provisions.
10
April 2008
Annuity Fund
GOULD, KOBRICK & SCHLAPP, P.C., CERTIFIED PUBLIC ACCOUNTANTS 2002 requires contributions for all eligible participants at pro-rata daily rate not to exceed $478 per annum.
Empire State Building, 350 Fifth Avenue, New York, N.Y. 10118-4309 The Plan accepts rollover contributions from other New York City Governmental Plans for employees transferring into covered
titles.
Social Service Employees Union
Local 371 Annuity Fund Participant Accounts: Each participant’s account is credited with the employer contributions made on their behalf plus an allo-
817 Broadway, New York, New York 10003 cation for Plan earnings (losses). Less distributions and a deduction for Plan expenses.
Vesting: Once an individual account has been established, all contributions and earnings thereon are immediately vested in
INDEPENDENT AUDITOR’S REPORT each participant’s account after the end of each quarter.
Payment of Benefits: Participant are entitled to their entire account balance. Account distributions are made upon termina-
We have audited the accompanying statements of net assets available for benefits of the Social Service Employees Union Local
371 Annuity Fund as of March 31, 2007 and 2006 and the related statements of changes in net assets available for benefits for tion of employment, retirement, death or permanent disability.
the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express Plan Termination: In the event of termination of the Plan, the Trust Agreement requires that the Trustees shall distribute to
an opinion on these financial statements based on our audits. each employee that value of his account subject to any administrative adjustment at the time of termination in such a manner that
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those will best effectuate the Plan’s intent.
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are Other: The Fund’s Board of Trustees has the right under the Plan to modify benefits provided to participants.
free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by man- NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
agement, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis Basis of Accounting: The financial statements were prepared on the accrual basis of accounting.
for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for Valuation of Investments: Investments are stated at fair value as measured by quoted prices in an active market except
benefits of the Plan as of March 31, 2007 and 2006 and the changes in net assets for benefits for the periods then ended in con- for the Plan’s investments in non-publicly traded common trust funds that are stated at estimated for values determined by the fund
formity with accounting principles generally accepted in the United State of America. trustee from reputable pricing sources applied to the underlying quoted and nonquoted securities held. In general, short-term invest-
ments, which are readily convertible into cash, are carried at cost, which approximates fair values.
August 28, 2007 GOULD, KOBRICK & SCHLAPP, P.C. Payments of Benefits: Benefit payments to participants are recorded upon distribution.
Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles
STATEMENTS OF NET ASSETS requires Fund management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclo-
AVAILABLE FOR BENEFITS sure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses
AT MARCH 31, 2007 AND 2006 during the reporting period. Actual results could differ from those estimates.
Amortization of Start-up Costs: All expenses associated with the preparation of the Funds trust documents and obtain-
2007 2006 ing its tax exemption have been capitalized and amortized over a 15-year period.
ASSETS NOTE 3 - TAX STATUS
Investments, at fair value 39,507,683 32,119,069
The Plan is a qualified trust under Section 401(a) of the Internal Revenue Code (IRC) and is exempt from federal income taxes
Receivables: under provision of IRC Section 501(a). The Internal Revenue Service has determined and informed the Plan by a letter dated
Employer contributions 1,195,015 1,194,504 November 9, 2000, that the Plan are related trust are designed in accordance with applicable sections of the IRC.
Accrued investment income 177,272 80,657
Due from related organizations 175 175 NOTE 4 - RISKS AND UNCERTAINTIES
Cash, operating accounts 70,807 0 Due to various risks (e.g., interest rate, market and credit risks) associated with certain investments and the level of uncertain-
ty related to changes in the value of investments, it is at least reasonably possible that changes in the values of investments will
Other Assets: occur in the near term that could materially affect the amounts reported in the statement of net assets available for benefits.
Start-up costs - net of amortization of $10,043 (2007)
and $9,379 (2006) 12,505 14,069 NOTE 5 - INVESTMENTS
Prepaid expenses 0 440 The following summary reflects investments held at March 31, 2007 and 2006:
____________ ____________ 2007 2006
Total Assets 40,963,457 33,408,914 Cash and cash equivalents 22,215 987,341
____________ ____________ Investments at fair value as determined by quoted
market prices:
LIABILITIES U.S. Government Bonds 13,786,126 10,336,507
Accrued administrative expenses 92,181 82,095 Domestic equities 10,663,839 4,747,053
Due to brokers for securities purchased 0 293,196 Corporate bonds 20,796 41,492
Due to related organizations 0 15,676 Other investments:
Cash, operating accounts overdraft 0 4,523 Common trust funds
____________ ____________ Fixed income 15,014,707 11,694,176
Total Liabilities 92,181 395,490 Equities 0 4,312,500
____________ ____________ ____________ ____________
NET ASSETS AVAILABLE FOR BENEFITS 40,871,276 33,013,424 Totals $39,507,683 32,119,069
____________ ____________
____________ ____________ ____________ ____________
____________ ____________
The following investments, at fair value, represent five percent (5%) or more of the Fund’s Net Assets.
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE Shares/Par Value Investment Due Date Interest Rate Fair Value
FOR BENEFITS FOR THE YEARS ENDED $33,595 Longview Core Bond Index Fund N/A N/A $15,014,706
MARCH 31, 2007 AND 2006
$2,770,000 US Treasury Note 04/15/10 4.00% $2,727,591
2007 2006 $2,475,000 US Treasury Note 04/15/10 4.25% $2,453,047
ADDITIONS TO NET ASSETS ATTRIBUTED TO During the years ended March 31, 2007 and 2006, the Fund’s investments (including investments bought, sold and held dur-
Investment income: ing the year) appreciated (depreciated) in fair value as follow:
Interest and dividends 605,273 390,091 2007 2006
Net appreciation in fair value of investments 1,956,823 1,002,639 Investments at fair value as determined by quoted
_____________ _____________)
market prices:
2,562,096 1,392,730 Domestic equities 1,298,389 508,449
Less - Investment fees 149,397 133,363 U.S. Government bonds 170,843 (132,147)
_____________ _____________
Corporate bonds 65,664 (1,574)
Net Investment Income 2,412,699 1,259,367 Other investments:
Common trust funds $421,927 627,911
Employer contribution 6,954,640 7,159,950 ____________ ____________
Other Contributions 38,057 27,746
_____________ _____________ $1,956,823 $1,002,639
____________ ____________
) Total Additions 9,405,396 8,447,063 ____________ ____________
NOTE 6 - AGREEMENTS AND TRANSACTIONS WITH PERSONS KNOWN TO BE PARTIES IN INTEREST
)
The Social Service Employees Union Local 371 AFSCME, AFL-CIO (the “Union”) is a party to the collective bargaining agree-
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO)
ment that provides for pension and health and welfare benefit for its eligible members, as covered under the Plans.
Benefits paid 1,483,586 1,073,818
Administrative expenses 63,958 57,354 Pursuant to agreements adopted by the trustees of the Plan and the Social Service Employees Union Local 371 Administrative
_____________ _____________ Fund, the Administrative Fund will reimbursed Plan expenses incurred after October 1, 2000 and through May 31, 2006.
Total Deductions 1,547,544 1,131,172 Effective June 1, 2005 this agreement was terminated.
_____________ _____________ NOTE 7 - ADMINISTRATIVE EXPENSES
Net increase in net assets available for benefits 7,857,852 7,315,891 2007 2006
_____________ _____________
Professional fees:
Net assets available for benefits: Legal 14,500 9,000
Beginning 33,013,424 25,697,533 Auditing 9,000 8,000
_____________ _____________
Consultant 4,872 5,361
Ending $40,871,276 $33,013,424 Stationary, printing and postage 23,831 21,980
_____________ _____________ Insurance 10,192 11,335
_____________ _____________
Other general and administrative 1,563 1,678
_________ _________
NOTES TO FINANCIAL STATEMENTS AT MARCH 31, 2007 $ 63,958 $ 57,354
_________
_________ _________
_________
NOTE 1 - DESCRIPTION OF PLAN NOTE 8 - UNALLOCATED NET ASSETS
The following description of the Social Service Employees Union Local 371 Annuity Fund (the “Fund”) provides only general Due to timing differences in the receipt and posting of contributions there are differences between the total of participants’
information. Participants should refer to the benefit booklet for a more complete description of the Fund’s provisions. account balances and the net assets of the Plan. The differences are as follows:
General: The Plan is a collectively bargained non-contributory defined contribution plan that provides annuity benefits to eli-
gible participants. The Plan was established in 1999 pursuant to a collective bargaining agreement between the City of New York 2007 2006
(the “Employer”) and Social Service Employees Union Local 371 (the “Union”). It is not subject to the provisions of the Employee Net assets available for benefits 40,871,276 33,013,424
Retirement Income Security Act of 1974 (ERISA), as amended. Participant account balances 39,549,436 31,791,138
Plan Administration: The administration of the Plan is the responsibility of a board of trustees comprised of union officers and ____________ ____________
appointees. The Plan’s investments are managed by independent investment managers who have full discretion and authority to affect Unallocated net assets $1,321,840 $1,222,286
transactions for the benefit of the Plan within the guidelines set by the trustees. A separate Plan custodian holds the investments of the Plan. ____________ ____________
____________ ____________
Contributions: Contributions are made by the City of New York and its agencies for covered participants. Rates are deter-
mined by the collective bargaining agreement in effect at the time. The current collective bargaining agreement, in effect since July 1,
11
The Unionist
Condolences
Charleston, SC. Condolences may be sent to Evelyn Condolences are extended to the family of passed away on April 4, 2008, and had approxi-
Condolences are extended to Mona Spann, Johnson c/o Kingsbridge Center 43, 260 E. 161st Darren Sheppherd, former member, Union mately 8 years of service with OCSE. Condolences
AJOS II, Crotona Job Center, on the death of her Street, 7th Floor, Bronx, New York 10451. Delegate and Activist from ACS, 770 Broadway may be sent to Carolyn Jewett, 2675 W. 36th St.
father, Melton Spann. Condolences may be sent Condolences are extended to Sherrie Dampeer, and 150 William Street. He passed away on 12D, Brooklyn, New York 11224.
to the Spann Family, 1737 Van Buren Street, Union Delegate and Sup III at Brooklyn APS, on March 20. Condolences may be sent to his wife, Condolences are extended to Luvonnia Taylor,
Bronx, New York 10462. the death of her mother, Grace Watson. She Rosalyn Shepperd at 144-56 225th Street, HRA Labor Relations, on the death of her mother,
Condolences are extended to Evelyn Johnson, passed away on March 19, 2008. Condolences Springfield Gardens, New York 11413. Lula Taylor. Condolences may be sent to
HASA, on the death of her mother, Mattie Mae may be sent to Sherrie Dampeer, 729 Quincy Condolences are extended to the family of Todd Luvonnia Taylor, 438 Pulaski Street, Brooklyn,
Lemon. She was 88 years old and passed away in Street, Brooklyn, New York 11221. Burgh, Caseworker, Brooklyn Boro Office #2. He New York 11221.
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