New York State Public Employees Federation and Subsidiary
Consolidated Schedule of Chargeable and
Nonchargeable Expenses
For the Year Ended March 31, 2009
Independent Auditors’ REPORT
Officers and Trustees
New York State Public Employees Federation
We have audited, in accordance with U.S. generally accepted auditing standards, the consolidated financial statements of New York State Public Employees Federation and Subsidiary (PEF) for the year ended March 31, 2009, and have issued our report thereon dated November 19, 2009. We have also audited the accompanying consolidated schedule of chargeable and nonchargeable expenses for the purpose of calculating agency shop fee refunds for the year ended March 31, 2009. This schedule is the responsibility of PEF’s management. Our responsibility is to express an opinion on this schedule based on our audit.
We conducted our audit of the schedule in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated schedule of chargeable and nonchargeable expenses is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated schedule of chargeable and nonchargeable expenses. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall schedule presentation. We believe that our audit provides a reasonable basis for our opinion.
Under law, individuals are entitled to a refund of the pro-rata share of agency shop fees spent by PEF in aid of causes of a political and ideological nature, which are only incidentally related to the terms and conditions of employment. We have been informed by management that PEF bases the determination of nonchargeable expenses for the calculation of its refunds, on the definitions in Note 2 and the significant factors and management assumptions described in Note 3, and that these factors and assumptions are based on management's interpretation of legal precedent.
In our opinion, the consolidated schedule of chargeable and nonchargeable expenses presents fairly, in all material respects, the consolidated allocable expenses and allocation between chargeable and nonchargeable expenses of New York State Public Employees Federation and Subsidiary for the year ended March 31, 2009, in accordance with the definitions, significant factors and management assumptions referred to above.
This report is intended to be used in connection with the calculation of agency shop fee refunds by PEF and is intended solely for the information and use of those who are knowledgeable of PEF's agency shop fee refund policies and procedures and is not intended to be and should not be used by anyone other than these specified parties.
Marvin and Company, P.C.
November 19, 2009
