Downloadable - IA.TSE Local 80

The cost of one quarterly receipt stamp and its allocation is as follows:
Allocation of Quarterly Stamp
Richard
Walsh/
Alfred W.
Cost
Convention DiTolla/
of One and Harold
Quarterly General Defense Per Diem Spivak
Stamp Fund Fund Fund Foundation
Period
Jan.1, 2012 - April 30, 2012 $48.00 $41.90 $4.00 $2.00 $.10
Jan. 1, 2011 - Dec. 31, 2011 47.00 40.90 4.00 2.00 .10
May 1, 2010 - Dec. 31, 2010 45.00 38.90 4.00 2.00 .10
Note 7 - Royalty income
During 1997, the International entered into an agreement with the A.F.L.-C.I.O. granting
them the right to use the International Union trademarks and membership lists. In
consideration for this license, the A.F.L.-C.I.O. pays annual royalties to the International
based on usage. The annual royalties received by the International during fiscal 2012 and
2011 amounted to $163,957 and $154,532, respectively. The term of the existing agreement
expires on February 28, 2017.
Note 8 - Real and personal property
Real and personal property is recorded at cost and consists of:
April 30
2012 2011
Land $1,147,391 $1,147,391
Buildings 2,892,829 2,740,907
Furniture and equipment 2,715,563 2,276,706
Total 6,755,783 6,165,004
Less accumulated depreciation 2,460,303 2,111,214
$4,295,480 $4,053,790
In April 2012, the International through its wholly-owned subsidiary, the General Building
Corp., entered into a purchase agreement with an unrelated third party seller to purchase
three condominium units located at 207-217 West 25th Street, New York, New York. Under
the terms of the agreement, the International made a $1,061,802 deposit for the purchase
of the condominium units. In connection with the closing of the Condominium units on June
29, 2012, the International paid the seller the remaining balance of $9,556,218.
Note 9 - Employee 401(K) Savings Plan
The International maintains a 401(K) defined contribution savings plan through Merrill
Lynch. All those employed by the International who have attained the age of 21 and
completed one year of service are eligible to participate. Each employee is permitted to
contribute up to 15% of their compensation up to the maximum amount permitted under
the law and is 100% vested in the amount contributed. There is no matching contribution
made by the International.
Note 10 - Rental income
The Realty Corp. and General Building Corp. as lessors under five commercial leases,
which expire during various dates ranging from fiscal 2012 through 2017, will receive
minimum base rents during the term of the leases as follows:
Fiscal Year
2013 $260,266
2014 224,191
2015 40,077
2016 33,788
2017 2,753
$561,075
Note 11 - Contingency
The International has been named in a number of lawsuits that arose in the normal course
of business. It is the opinion of management the eventual disposition of these legal actions,
based on available insurance coverage and the assessment of the merits of such actions by
counsel will not have a material adverse effect on the financial position of the International.
Note 12 Unrestricted Net Assets
Total Unrestricted Pension
Net
Liability
Assets Adjustments
Balance April 30, 2010 $ 25,072,727 $ 38,477,242 $(13,404,515)
Change in net assets 1,823,511 1,823,511 -
Pension related changes
other than benefit cost (530,617) - (530,617)
1,292,894 1,823,511 (530,617)
Balance April 30, 2011 26,365,621 40,300,753 (13,935,132)
Change in net assets 704,265 704,265 -
Pension related changes
other than benefit cost (6,168,661) - (6,168,661)
(5,464,396) 704,265 (6,168,661)
Balance April 30, 2012 $ 20,901,225 $ 41,005,018 $ (20,103,793)
Convention Transportation and Per Diem Fund Statement Of Financial Position
Assets
Year Ended April 30
2012 2011
Cash $ 29,933 $ 25,992
Investments, at Market (note 3)
Merrill Lynch Investment Fund Account 4,011,245 3,213,387
Harris Private Banking 853,799 717,634
4,865,044 3,931,021
Accrued interest receivable 11,971 11,261
Due from General Fund 106,422 147,299
Total assets $5,013,370 $ 4,115,573
Liabilities and Unrestricted Net Assets
Deferred income (note 1) $ 247,715 $ 248,305
Unrestricted net assets 4,765,655 3,867,268
Total liabilties and unrestricted net assets $5,013,370 $ 4,115,573
Convention Transportation and Per Diem Fund Statement Of Activities
Year Ended April 30
2012 2011
Income
Per capita tax (note 1) $ 864,149 $ 866,377
Interest earned 43,817 43,708
Foreign currency exchange gain - 4,027
Total income 907,966 914,112
Expenses
Miscellaneous 5,616 4,550
Foreign currency exchange loss 3,798 -
Total expenses 9,414 4,550
Change in net assets before net
realized and unrealized gain (loss)
on investments 898,552 909,562
Net realized and unrealized gain (loss)
on investments (note 3) (165) 2,476
Change in net assets 898,387 912,038
Unrestricted net assets - beginning of year 3,867,268 2,955,230
Unrestricted net assets - end of year $4,765,655 $3,867,268
Convention Transportation and Per Diem Fund Statement Of Cash Flows
Year Ended April 30
2012 2011
Cash flows from operating activities
Change in net assets $898,387 $912,038
Adjustments to reconcile change in net assets
to net cash provided by operating activities
Net realized and unrealized (gain) loss
on investments 165 (2,476)
Changes in certain accounts
Accrued interest receivable (710) (164)
Due from General Fund 40,877 (33,087)
Deferred income (590) 18,463
Total adjustments 39,742 (17,264)
Net cash provided by operating activities 938,129 894,774
Cash flows from investing activities
Purchases of investments (3,154,956) (2,719,033)
Proceeds from redemption of investments 2,220,768 1,813,951
Net cash (used) by investing activities (934,188) (905,082)
Increase (decrease) in cash 3,941 (10,308)
Cash at beginning of year 25,992 36,300
Cash at end of year $ 29,933 $ 25,992
Convention Transportation and Per Diem Fund Notes to Financial Statements
Note 1 - Organization
The Convention Transportation and Per Diem Fund (“Fund”) was established to receive
a portion of the per capita tax collected and distributed by the General Fund, to defray the
costs of delegates’ transportation, accident insurance, per diem and printing expense at
the Convention of the International Alliance of Theatrical Stage Employees, Moving Picture
Technicians, Artists and Allied Crafts of the United States, its Territories and Canada (the
“International”). Payments received for future periods have been deferred.
Note 2 - Summary of significant accounting policies
The Fund is a separate fund of the International. The International is a tax exempt
organization under the provisions of Section 501(c)(5) of the Internal Revenue Code and
files annual information returns as required.
The Fund’s functional currency is the United States dollar. Some transactions of the
Fund are made in Canadian dollars. Gains and losses from these transactions are included
in income as they occur. These assets are translated using year-end rates while income is
translated at average exchange rates. The Fund records adjustments resulting from these
transactions as foreign currency exchange gain (loss) in the statement of activities.
In preparing its financial statements in conformity with accounting principles generally
accepted in the United States of America (“U.S. GAAP”), the Fund makes estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
The Fund’s cash is deposited in various banks at April 30, 2012. The Fund has not
experienced any losses on its cash deposits.
The Fund has evaluated subsequent events through July 19, 2012 and has determined
there are no subsequent events or transactions which would require recognition or disclosure
in the Fund’s financial statements.
Note 3 - Valuation of investments and fair value measurement
The Fund measures and reports its investments at fair value, which is the price that would
be received from selling an asset or paid to transfer a liability in an orderly transaction
between participants at the measurement date.
U.S. GAAP establishes a hierarchal disclosure framework which prioritizes and ranks the
level of market price observability used in measuring fair value. Market price observability
is impacted by a number of factors, including the type of investment and the characteristics
specific to the investment. Investments with readily available active quoted prices or for
which fair value can be measured from actively quoted prices generally will have a higher
degree of market price observability and a lesser degree of judgment used in measuring
fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used in
measuring fair value into three broad levels with the highest priority to quoted prices in
active markets (Level I) and the lowest priority to unobservable inputs (Level III).
Fair value measurements are classified in one of the following categories:
Level I - Observable inputs such as quoted prices for identical assets or liabilities in active
markets.
Level II - Observable inputs other than quoted prices substantiated by market data and
observable, either directly or indirectly for the asset or liability. This includes quoted prices
for similar assets or liabilities in active markets.
Level III - Unobservable inputs that are supported by little or no market activity and that
are significant to the fair value of the assets and liabilities.
In certain cases, the inputs used to measure fair value may fall into different levels of the
fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is
based on the lowest level of input that is significant to the fair value of the measurement.
Management of the Fund’s assessment of the significance of a particular input to the fair
value measurement in its entirety requires judgment, and considers factors specific to the
investment.
The following table summarizes the valuation of the Fund’s investments by the above fair
value hierarchy levels as of April 30, 2012 and 2011:
2012
Description Level I Level II Level III Total
Government securities $ 457,693 $ - $ - $ 457,693
Corporate bonds 121,011 - - 121,011
Cash and cash equivalents 418,425 - - 418,425
Certificates of deposit 3,867,915 - - 3,867,915
Total Investments $4,865,044 $ - $ - $ 4,865,044
2011
Description Level I Level II Level III Total
Government securities $ 455,362 $ - $ - $ 455,362
Corporate bonds 120,267 - - 120,267
Cash and cash equivalents 180,236 - - 180,236
Certificates of deposit 3,175,156 - - 3,175,156
Total Investments $3,931,021 $ - $ - $ 3,931,021
Any realized and unrealized gains and losses from investments are reported in the
statement of activities.
14 Official Bulletin
Third Quarter 2012 15