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Report of Independent Auditors
TO THE INTERNATIONAL EXECUTIVE COUNCIL OF THE
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
We have audited the accompanying consolidated
statements of financial position of
the International Brotherhood of Electrical
Workers and subsidiaries (collectively the
“International Union”) as of June 30, 2006
and 2005, and the related consolidated
statements of activities and of cash flows
for the years then ended. These financial
statements are the responsibility of the
International Union’s management. Our
responsibility is to express an opinion on
these financial statements based on our
audits.
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 an
audit to obtain reasonable assurance about
whether the financial statements are free of
material misstatement. 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 the
International Union’s management, as well
as evaluating the overall financial statement
presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements
referred to above present fairly, in all material
respects, the consolidated financial
position of the International Brotherhood of
Electrical Workers and subsidiaries as of
June 30, 2006 and 2005, and the consolidated
changes in their net assets and their
consolidated cash flows for the years then
ended, in conformity with accounting principles
generally accepted in the United
States of America.
Washington, DC
August 4, 2006
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2006 AND 2005
2006 2005
Unappropriated Appropriated Total Total
ASSETS
Cash and cash equivalents $847,147 $ - $847,147 $2,001,033
Receivables
Loans and advances to chartered bodies 6,072,314 — 6,072,314 623,003
Per capita tax receivable 6,427,816 — 6,427,816 7,593,033
Due from Trust for the
IBEW Pension Benefit Fund 577,739 — 577,739 —
Accrued interest and dividends 1,536,954 — 1,536,954 1,396,254
Security sales pending settlement 2,696,282 — 2,696,282 1,891,982
Other 1,774,299 — 1,774,299 1,207,768
Total receivables 19,085,404 — 19,085,404 12,712,040
Investments—at fair value 325,851,281 117,499,902 443,351,183 447,107,833
Amounts held in escrow
for tenant improvements 9,151,289 — 9,151,289 8,847,163
Unbilled rent receivable 1,091,185 — 1,091,185 384,244
Cash collateral held for securities on loan 28,206,108 — 28,206,108 36,821,079
Property and equipment—at cost
Land, building and improvements 124,033,474 — 124,033,474 121,698,058
Furniture and equipment 38,930,015 — 38,930,015 33,569,377
162,963,489 — 162,963,489 155,267,435
Accumulated depreciation (12,236,810) — (12,236,810) (7,009,812)
Net property and equipment 150,726,679 — 150,726,679 148,257,623
Other assets
Deferred leasing, organization
and financing costs (net of amortization) 2,769,071 — 2,769,071 2,533,832
2006 2005
Unappropriated Appropriated Total Total
Prepaid expenses 1,936,224 — 1,936,224 505,891
Inventory of merchandise
and office supplies, at cost 1,349,695 — 1,349,695 1,238,687
Deposits 149,000 — 149,000 149,000
Intangible pension asset — — — 10,689,679
Other 594,857 — 594,857 120,864
Total other assets 6,798,847 — 6,798,847 15,237,953
Total assets $541,757,940 $117,499,902 $659,257,842 $671,368,968
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
and accrued expenses $3,428,513 $ — $3,428,513 $5,414,267
Payroll deductions 1,815 — 1,815 43,473
Due to Trust for the
IBEW Pension Benefit Fund — — — 425,143
Accrued net periodic pension cost 1,489,820 — 1,489,820 27,414,987
Accrued postretirement benefit cost — 117,499,902 117,499,902 103,900,873
Security purchases pending settlement 36,873,713 — 36,873,713 21,645,694
Deferred per capita tax revenue 5,036,109 — 5,036,109 4,511,324
Liability to return cash collateral on loan 28,206,108 — 28,206,108 36,821,079
Mortgages payable 76,274,512 — 76,274,512 78,268,233
Other 631,598 — 631,598 305,990
Total liabilities 151,942,188 117,499,902 269,442,090 278,751,063
Unrestricted net assets 389,815,752 — 389,815,752 392,617,905
Total liabilities and net assets $541,757,940 $117,499,902 $659,257,842 $671,368,968
See accompanying notes to consolidated financial statements.
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ACTIVITIES
YEARS ENDED JUNE 30, 2006 AND 2005
2006 2005
Unappropriated Appropriated Total Total
Operating revenue
Per capita tax $80,669,435 $ — $80,669,435 $81,170,040
Initiation and reinstatement fees 1,432,470 — 1,432,470 1,339,074
Rental income, net 5,778,186 — 5,778,186 1,977,548
Sales of supplies 820,781 — 820,781 718,983
Other income 3,453,541 — 3,453,541 5,764,570
Total operating revenue 92,154,413 — 92,154,413 90,970,215
2006 2005
Unappropriated Appropriated Total Total
Program services
Field services and programs $68,246,812 $13,281,191 $81,528,003 $74,924,864
IBEW Journal and media relations 4,344,258 389,892 4,734,150 5,071,677
Industry trade program 8,470,296 1,914,089 10,384,385 10,315,390
Per capita tax expense 6,879,188 — 6,879,188 6,555,867
Legal defense 2,650,601 — 2,650,601 2,376,588
Total program services 90,591,155 15,585,172 106,176,327 99,244,386
8 IBEW JOURNAL, DECEMBER 2006