We lc ome De r r ic k Str osnide r , CPA Par tne r , Calibr - - PowerPoint PPT Presentation

De r r ic k Str

• snide r

, CPA Par tne r , Calibr e CPA Gr

• up

25+ ye a rs in pub lic a c c o unting fo c use d o n no t-fo r-pro fit e ntitie s c o nc e ntra ting in la b o r unio ns a nd the ir re la te d b e ne fit pla ns a nd po litic a l a c tio n c o mmitte e s. L e a d Pa rtne r fo r se ve ra l re la tio nships pro viding va lue a dde d a udit a nd c o nsulting se rvic e s inc luding fina nc ia l sta te me nt a udits, due s o b je c to r a udits, o pe ra tio na l re vie ws, inte rna l c o ntro l a na lysis a nd c o mplia nc e a nd re po rting c o nsulting . Me mb e r o f the firm’ s Ma na g e me nt Co mmitte e a nd o ve rse e s the e ffo rts o f Ca lib re CPA Gro up’ s Ma rke ting T e a m.

We lc ome

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F
• c use d o n the ne e ds o f the ta x-e xe mpt c o mmunity c o nc e ntra ting o n

L a b o r Org a niza tio ns

• Offic e s in me tro po lita n Wa shing to n, DC, Chic a g o , I

L a nd mo st re c e ntly, Ne w Yo rk, NY with c lie nts a c ro ss the Unite d Sta te s

• Se rve the ma jo rity o f Na tio na l a nd I

nte rna tio na l L a b o r Unio ns a nd a le a ding pro vide r to a sig nific a nt numb e r o f L

• c a ls, L
• dg e s, Distric t

Co unc ils a nd o the r a ffilia te s a nd o rg a niza tio ns

• Pro viding a udit, a c c o unting , ta x, a nd a dviso ry se rvic e s fo r

80+ ye a rs

• Spe c ia lize d kno wle dg e o f c o mplia nc e a nd re po rting re q uire me nts with

the De pa rtme nt o f L a b o r a nd I nte rna l Re ve nue Se rvic e

About Calibr e CPA Gr

• up, PL

L C

Na tio na l L a b o r Unio n Co nfe re nc e 2017

E duc ating and Communic ating with Clie nts

• Blogs, e mails and othe r

posts

• We r
• utine ly hold infor

mational se minar s, we binar s, and CPE se ssions on a var ie ty of topic s:

• Annua l Na tio na l L

a b o r Unio n Co nfe re nc e

• Annua l Chic a g o L

a b o r Unio n Co nfe re nc e (a nd so o n Ne w Yo rk)

• Annua l E

mplo ye e Be ne fit Pla n Co nfe re nc e

• Othe r pe rio dic se mina rs a nd we b ina rs. Re c e nt to pic s inc lude :
• Cha ng e s to F

e de ra l F

• rms 990 & 5500
• I

mple me nta tio n o f the Risk-Ba se d Auditing Sta nda rds

• No t-fo r-Pro fit Co mple x a nd E

me rg ing Ac c o unting I ssue s

• Da shb o a rd Re po rting
• I

nte rna l Co ntro ls a nd F ra ud De te rre nc e

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Age nda

Navigating the L abor Union L andsc ape – A Be st Pr ac tic e s Appr

• ac h
• Jo hn L

und, F

• unde r & Princ ipa l, Pa c ific No rthwe st L

a b o r Re se a rc h

Calibr e CPA Gr

• up Annual L

abor Union Re por t - F indings

• De rric k Stro snide r, Pa rtne r, Ca lib re CPA Gro up
• Art Budic h, Pa rtne r, Ca lib re CPA Gro up

Fifte e n Minute Bre ak How ar e You Navigating the L abor Union L andsc ape ?

• I

nte ra c tive se ssio n

Hot T

• pic s – GAAP & T

ax Update s

• Ma ry Ma rg a re t Pra ng e , Pa rtne r, Ca lib re CPA Gro up
• Sc o tt Ha llb e rg , Se nio r Dire c to r, Ca lib re CPA Gro up

About Dir e c t Pay: What We ’ve L e ar ne d & Its Impac t to L abor

• K

yle Ba zzy, Dire c to r o f Gro wth, Billhig hwa y

• T

ish Olshe fski, Assista nt to the Se c re ta ry T re a sure r, AF T

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Navigating the L abor Union L andsc ape

• Re le va nc y o f T
• da y’ s T

he me :

• L

e g a l I ssue s

• I

nc re a se in Rig ht to Wo rk Sta te s

• Ja nus v. AF

SCME (I llino is) a nd Yo hn V. Ca lifo rnia T e a c he rs Asso c ia tio n

• like ly to he a d to Supre me Co urt
• Pro po se d Pre side ntia l b udg e t inc re a se s OL

MS spe nding b y 20%

• Othe r o b se rva tio ns
• Co ntinue to se e a ne e d fo r b udg e t pla nning fo r va rio us sc e na rio s
• Po te ntia l inc re a se in I
• CAP a nd CAP a udits
• Co nfe re nc e is De sig ne d to He lp Yo u:
• I

de ntify po te ntia l a re a s o f risk

• L

e a rn a nd a sse ss b e st pra c tic e a ppro a c he s fo r tig hte ning c o ntro ls a nd

• pe ra ting mo re e ffic ie ntly
• Ne two rk a nd sha re with o the rs who ha ve fa c e d simila r c ha lle ng e s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

2017 National L abor Re por t F indings

National L abor Union Confe r e nc e

Na tio na l L a b o r Unio n Co nfe re nc e 2017

National L abor Union Re por t - 2017

De r r ic k Str

• snide r

, CPA Par tne r , Calibr e CPA Gr

• up

26+ ye a rs in pub lic a c c o unting fo c use d o n no t-fo r- pro fit e ntitie s inc luding la b o r unio ns, sing le , multiple a nd multie mplo ye r b e ne fit pla ns, tra de a sso c ia tio ns, e duc a tio na l a nd c ha rita b le

• rg a niza tio ns a nd po litic a l a c tio n c o mmitte e s.

Ar thur E . Budic h, CPA, CF E Par tne r , Calibr e CPA Gr

• up

An Audit pa rtne r a nd me mb e r o f the F

• re nsic & Risk

Adviso ry te a m, Art ha s b e e n in pub lic a c c o unting sinc e 2003. Art ha s sig nific a nt a udit e xpe rie nc e with ta x-e xe mpt o rg a niza tio ns inc luding tra de a nd pro fe ssio na l a sso c ia tio ns, c ha rita b le fo unda tio ns, a dvo c a c y g ro ups, e mplo ye e b e ne fit pla ns a nd la b o r unio ns.

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Bac kgr

• und & Me thodology
• Da ta c o mpile d fro m 2016 L

M-2s file d o n DOL we b site

• 59 Na tio na l a nd I

nte rna tio na l L a b o r Unio ns

• Gro upe d into 3 c a te g o rie s:
• Gro up A:Ove r $100 millio n in Due s a nd Ag e nc y F

e e s/ Pe r Ca pita T a x (13)

• Gro up B: Be twe e n $20-100 millio n in Due s a nd Ag e nc y

F e e s/ Pe r Ca pita T a x (23)

• Gro up C: L

e ss tha n $20 millio n in Due s a nd Ag e nc y F e e s/ Pe r Ca pita T a x (23)

• Unio n na me s ha ve no t b e e n disc lo se d
• Ana lyze d a nd c o mpa re d da ta o ve r la st fo ur ye a rs

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Bac kgr

• und & Me thodology
• Note s and Comme nts
• So me Unio ns ma y b e o n c a sh o r mo difie d c a sh b a sis o f

a c c o unting so S

tate me nt A – Asse ts and L iabilitie s ma y

no t b e c o mpa ra b le fo r a ll o rg a niza tio ns

• I

mpa c t o f Multi-e mplo ye r pla ns vs. Sing le E mplo ye r Pla ns

• I

nve stme nts re po rte d a t lo we r o f c o st o r ma rke t

• T
• ta l Re c e ipts – no t Re ve nue
• I

nc lude s sa le s o f inve stme nts, lo a ns o b ta ine d, c o lle c tio ns o n b e ha lf o f a ffilia te s a nd fro m me mb e rs

• T
• ta l Disb urse me nts – no t E

xpe nse s

• I

nc lude s purc ha se s o f inve stme nts, lo a n re pa yme nts, disb urse me nts to a ffilia te s o f funds c o lle c te d o n the ir b e ha lf, a nd disb urse me nts to individua l me mb e rs

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Ne t Asse ts

50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 2013 2014 2015 2016 Gr

• up A

Gr

• up B

Gr

• up C

Ave r age

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Pe r Capita T ax/ Due s

50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 2013 2014 2015 2016 Gr

• up A

Gr

• up B

Gr

• up C

Ave r age

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Administe r s a T r ust Has a PAC Had an Audit Ple dge d Asse ts Continge nt L iabilitie s

Gro up A Ave ra g e 100% 92% 100% 69% 38% Gro up B Ave ra g e 87% 87% 100% 43% 26% Gro up C Ave ra g e 70% 61% 96% 22% 9%

Char t 2 - Re sponse s to Se le c te d Que stions 10-17

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 2 – Bonding Amount

Blue = High Red= Low Green= Average

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 2-Cash and Inve stme nts-Gr

• up A

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 2-Cash and Inve stme nts-Gr

• up B

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 2-Cash and Inve stme nts-Gr

• up C

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 7 – F unc tional E xpe nse Br e akdown

GROUP A

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 7 – F unc tional E xpe nse Br e akdown

GROUP B

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 7 – F unc tional E xpe nse Br e akdown

GROUP C

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 8 – Payme nts to Offic e r s, E mploye e s & Be ne fits as a Pe r c e ntage of PCT / Due s

Sc he dule s 11,12 & 20 As a % of PCT / Due s

L

• w

Hig h Ave ra g e Gro up A 29% 76% 50% Gro up B 26% 123% 63% Gro up C 33% 220% 76%

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 8 – Payme nts to Offic e r s, E mploye e s & Be ne fits as a Pe r c e ntage of T

• tal F

unc tional E xpe nse s

Sc he dule s 11, 12 & 20 As a % of Sc he dule s 15-19 L

• w

High Ave r age

Gro up A 30% 136% 70% Gro up B 16% 113% 74% Gro up C 16% 140% 72%

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 8 – Be ne fits (Sc he dule 20) as a Pe r c e ntage of Payme nts to Offic e r s & E mploye e s

Be ne fits as a % of Amounts in Sc he dule s 11 and 12 L

• w

High Ave r age

Gro up A 21% 197% 64% Gro up B 25% 118% 58% Gro up C 10% 182% 44%

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 9- Ope r ating Re se r ve s-Numbe r

• f

Months

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 10-Ave r age Offic e r s Salar y > $100,000

NOTE: For those officers with salaries in excess of $100,000

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 11-Ave r age E mploye e Disbur se me nt

Na tio na l L a b o r Unio n Co nfe re nc e 2017

We Want to He ar F r

• m You!

National L abor Union Confe r e nc e

Na tio na l L a b o r Unio n Co nfe re nc e 2017

How ar e You Navigating the L abor Union L andsc ape ?

Whe n aske d… What ar e some of the bigge st issue s or c halle nge s fac ing labor today?

• So lving the pa yro ll de duc tio n c risis a nd g e tting the rig ht

infra struc ture in pla c e

• Po te ntia l fina nc ia l impa c t fro m na tio na l a nd sta te

re g ula to ry c ha ng e s tha t c o uld re sult in de c lining me mb e rship

• Ab ility fo r na tio na l unio ns to mo nito r a nd pro vide tra ining

a nd suppo rt to the ir a ffilia te s

Agr e e or Disagr e e ? How ar e You Addr e ssing?

Na tio na l L a b o r Unio n Co nfe re nc e 2017

How ar e You Navigating the L abor Union L andsc ape ?

Whe n aske d… Whe r e do you se e r

• om for

gr

• wth ove r

the ne xt ye ar ?

• Mo re pro a c tivity in b uilding da ta b a se s a nd tra c king

syste ms to e nsure a ffilia te c o mplia nc e a nd c o ntro ls

• Be tte r c o mmunic a tio n a nd e ng a g e me nt with me mb e rs

to he lp the m unde rsta nd the va lue the y de rive fro m the unio n a nd why the y sho uld sta y with the unio n

Agr e e or Disagr e e ? How ar e You Addr e ssing?

Na tio na l L a b o r Unio n Co nfe re nc e 2017

GAAP Update s fr

• m F

ASB

National L abor Union Confe r e nc e

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Hot T

• pic s – GAAP & T

ax

Mar y Mar gar e t Pr ange , CPA Par tne r , Calibr e CPA Gr

• up

An a udit pa rtne r with Ca lib re CPA, Ma ry Ma rg a re t ha s b e e n in pub lic a c c o unting sinc e 2001. She ha s sig nific a nt a udit e xpe rie nc e with la b o r unio ns, no t- fo r-pro fit o rg a niza tio ns inc luding tra de a nd pro fe ssio na l a sso c ia tio ns, c ha rita b le fo unda tio ns, a dvo c a c y g ro ups, fa ith-b a se d o rg a niza tio ns a nd e mplo ye e b e ne fit pla ns. She he a ds the firm’ s Co ntinuing E duc a tio n Co mmitte e a nd is re spo nsib le fo r a ma jo rity o f the firm’ s inte rna l CPE pro g ra ms.

Sc ott Hallbe r g, CPA Se nor Dir e c tor , Calibr e CPA Gr

• up

I n pub lic a c c o unting sinc e 1976, Sc o tt is c o nside re d the firm’ s ma in a utho rity in ta x ma tte rs re la ting to la b o r unio ns, e mplo ye e b e ne fit pla ns, a nd ta x- e xe mpt o rg a niza tio ns. He ha s ha d e xte nsive de a ling s with the DOL a nd I RS in the e xa mina tio n o f va rio us o rg a niza tio ns a nd funds.

Na tio na l L a b o r Unio n Co nfe re nc e 2017

1

• 2015 Ac c o unting Sta nda rd

Upda te s 2

• 2016 Ac c o unting Sta nda rd

Upda te s 3

• 2017 Ac c o unting Sta nda rd

Upda te s

T

• pic s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F

a ir Va lue Me a sure me nt (T

• pic 820): Disc lo sure s fo r

I nve stme nts in Ce rta in E ntitie s T ha t Ca lc ula te Ne t Asse t Va lue pe r Sha re (o r I ts E q uiva le nt) (a c o nse nsus o f the F ASB E me rg ing I ssue s T a sk F

• rc e )

ASU 2015-07

• Pla n Ac c o unting : De fine d Be ne fit Pe nsio n Pla ns (T
• pic

960), De fine d Co ntrib utio n Pe nsio n Pla ns (T

• pic 962),

He a lth a nd We lfa re Be ne fit Pla ns (T

• pic 965): (Pa rt I

) F ully Be ne fit-Re spo nsive I nve stme nt Co ntra c ts, (Pa rt I I ) Pla n I nve stme nt Disc lo sure s, (Pa rt I I I ) Me a sure me nt Da te Pra c tic a l E xpe die nt ASU 2015-12

2015 Ac c ounting Standar d Update s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• Pub lic Busine ss E

ntitie s - E ffe c tive fo r fisc a l ye a rs b e g inning a fte r 12/ 15/ 15

• No n-pub lic Busine ss E

ntitie s –E ffe c tive fisc a l ye a rs b e g inning a fte r 12/ 15/ 16

E ffe c tive

• Re tro spe c tive a pplic a tio n to a ll pe rio ds pre se nte d
• E

a rly a do ptio n pe rmitte d

Applic a tio n

• I

nve stme nts me a sure d a t fa ir va lue using the NAV pra c tic a l e xpe die nt no t b e inc lude d in the fa ir va lue hie ra rc hy

• Amo unts o f suc h inve stme nt sho uld b e disc lo se d a s a re c o nc iling

ite m b e twe e n the a mo unts re po rte d in the fa ir va lue hie ra rc hy ta b le a nd the b a la nc e she e t

Ge ne ra l Ove rvie w

ASU 2015-07 (Issue d May 2015)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F

isc a l ye a rs b e g inning a fte r 12/ 15/ 15, only applic able to

E mploye e Be ne fit Plans

E ffe c tive

• E

a rly a do ptio n is pe rmitte d

• Pla ns c a n e a rly a do pt a ny o f the ASU’ s thre e pa rts witho ut

e a rly a do pting the o the r pa rts

Applic a tio n

• F

ASB issue d a 3 pa rt ASU to simplify re po rting fo r b e ne fit pla ns

• Pa rt 1: F

ully Be ne fit-Re spo nsive I nve stme nt Co ntra c ts

• Pa rt 2: Pla n I

nve stme nt Disc lo sure s

• Pa rt 3: Me a sure me nt Da te Pra c tic a l E

xpe die nt

Ge ne ra l Ove rvie w

ASU 2015-12 (Issue d July 2015)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• L

e a se s (T

• pic 842)

ASU 2016-02

• No t-fo r-Pro fit E

ntitie s (T

• pic 958):

Pre se nta tio n o f F ina nc ia l Sta te me nts o f No t-fo r-Pro fit E ntitie s ASU 2016-14

2016 Ac c ounting Standar d Update s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F

isc a l ye a rs b e g inning a fte r 12/ 15/ 18 fo r a no n-pro fit e ntity tha t ha s issue d,

• r is a c o nduit b o nd o b lig o r fo r se c uritie s tha t a re tra de d, liste d, o r q uo te d
• n a n e xc ha ng e o r a n o ve r-the c o unte r ma rke t
• F
• r o the r no n-pro fit e ntitie s, e ffe c tive fo r fisc a l ye a rs b e g inning a fte r

12/ 15/ 19

E ffe c tive

• E

a rly a do ptio n is pe rmitte d

Applic a tio n

• T

a rg e ts to impro ve fina nc ia l re po rting re g a rding le a sing tra nsa c tio ns a nd will e ffe c t no n-pro fits tha t le a se a sse ts (pro pe rty a nd e q uipme nt)

• Re q uire le sse e s to re c o g nize , o n the b a la nc e she e t, a sse ts a nd lia b ilitie s

fo r the rig hts a nd o b lig a tio ns c re a te d b y tho se le a se s.

Ge ne ra l Ove rvie w

ASU 2016-02 (Issue d F e br uar y 2016)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

ASU 2016-02 Mor e Spe c ific s

F

• r L

e sse e s

Prio r to ASU 2016-02 (Curre nt GAAP)

• Re c o g nitio n, me a sure me nt a nd pre se nta tio n o f le a se

e xpe nse s a nd c a sh flo ws de pe nde d o n whe the r it wa s a c a pita l o r o pe ra ting le a se

• Only c a pita l le a se s we re re q uire d to b e re c o g nize d o n

the b a la nc e she e t

Afte r ASU 2016-02 (Ba la nc e She e t)

• Re c o g nize rig ht-o f-use a sse t a nd a le a se lia b ility fo r

virtua lly a ll le a se s o ve r 12 mo nths in te rm

• L

ia b ility e q ua l to the pre se nt va lue o f le a se pa yme nts

• Asse t will b e b a se d o n the lia b ility, sub je c t to a djustme nt

fo r initia l dire c t c o sts.

Na tio na l L a b o r Unio n Co nfe re nc e 2017

ASU 2016-02 Mor e Spe c ific s

F

• r L

e sse e s

Afte r ASU 2016-02 (I nc o me Sta te me nt)

• L

e a se s will b e re q uire d to b e c la ssifie d a s e ithe r

• pe ra ting o r fina nc e
• Ope ra ting L

e a se s - re sult in stra ig ht-line e xpe nse (simila r to c urre nt o pe ra ting le a se s)

• F

ina nc e L e a se s - re sult in a fro nt-lo a de d e xpe nse pa tte rn (simila r to c urre nt c a pita l le a se s).

Ne w Disc lo sure re q uire me nts

Na tio na l L a b o r Unio n Co nfe re nc e 2017

F

• r L

e sso rs

• Simila r to c urre nt GAAP.
• L

e a se s still c la ssifie d a s e ithe r o pe ra ting , dire c t fina nc ing , o r sa le s-type (L e ve ra g e d le a se a c c o unting ha s b e e n e limina te d)

ASU 2016-02 Mor e Spe c ific s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Disc losur e Re quir e me nts

I nfo rma tio n a b o ut the na ture o f le a se s (a nd sub le a se s)

• Ge ne ra l de sc riptio n o f le a se s
• Ba sis, a nd te rms a nd c o nditio ns, o n whic h va ria b le

le a se pa yme nts a re de te rmine d

• E

xiste nc e , te rms a nd c o nditio ns o f o ptio ns to e xte nd

• r te rmina te the le a se
• E

xiste nc e , te rms a nd c o nditio ns o f le sse e re sidua l va lue g ua ra nte e s

• Re stric tio ns o r c o ve na nts impo se d b y le a se s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Disc losur e Re quir e me nts

I nfo rma tio n a b o ut le a se s tha t ha ve n’ t ye t b e g un, b ut tha t c re a te sig nific a nt rig hts a nd

• b lig a tio ns fo r le sse e s

I nfo rma tio n a b o ut sig nific a nt judg e me nts a nd a ssumptio ns ma de in a c c o unting fo r le a se s

• De te rmina tio n o f whe the r a c o ntra c t c o nta ins a le a se
• Allo c a tio n o f the c o nside ra tio n in a c o ntra c t b e twe e n

le a se a nd no n-le a se c o mpo ne nts

• De te rmina tio n o f the disc o unt ra te

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Disc losur e Re quir e me nts

Ma in te rms a nd c o nditio ns o f a ny sa le -le a se b a c k tra nsa c tio ns Whe the r a n a c c o unting po lic y e le c tio n wa s ma de fo r the sho rt-te rm le a se e xe mptio n. I f so , le sse e s sho uld disc lo se if the sho rt-te rm le a se e xpe nse do e sn’ t re fle c t a mo unts a ttrib uta b le to the le sse e ’ s sho rt-te rm le a se c o mmitme nts a nd the a mo unt o f its sho rt-te rm le a se c o mmitme nts

Na tio na l L a b o r Unio n Co nfe re nc e 2017

ASU 2016-02 - What do you ne e d to do?

• Ma ke sure yo ur o rg a niza tio n ha s a pro c e ss in pla c e

to ide ntify a nd g a the r info rma tio n o n a ll le a se s (o ffic e spa c e , o ffic e e q uipme nt, a uto s, re g io na l

• ffic e s, e tc )
• T

his ne w sta nda rd c o uld po te ntia lly ha ve b ro a de r implic a tio ns tha n just the fina nc ia l sta te me nts a nd re la te d disc lo sure s:

• Co uld impa c t de b t c o ve na nts
• Co uld trig g e r a mo re in de pth disc o ve ry pro c e ss o n

purc ha se vs. le a se tra nsa c tio ns

Na tio na l L a b o r Unio n Co nfe re nc e 2017

Ide ntifying a L e ase

F low c har t for ide ntifying a le ase

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• Ca le nda r ye a r b e g inning a fte r 12/ 15/ 17 a nd inte rim pe rio ds

b e g inning a fte r 12/ 15/ 18

E ffe c tive

• E

a rly a do ptio n is pe rmitte d. Sho uld b e a pplie d re tro spe c tive ly in the ye a r upda te is first a pplie d, ho we ve r c e rta in disc lo sure s c a n b e o mitte d fo r prio r c o mpa ra tive ye a r

Applic a tio n

• I

ssue d to impro ve e xisting sta nda rds fo r fina nc ia l sta te me nt pre se nta tio n b y NF P e ntitie s, fo c using o n:

• I

mpro ving Ne t Asse t c la ssific a tio n re q uire me nts

• I

nc re a sing info rma tio n pro vide d in fina nc ia l sta te me nts a nd no te s a b o ut liq uidity, fina nc ia l pe rfo rma nc e a nd c a sh flo ws

Ge ne ra l Ove rvie w

ASU 2016-14 (Issue d August 2016)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

ASU 2016-14 Mor e Spe c ific s

Ne t Asse t Cla ssific a tio n & Disc lo sure s

• T

e mpo ra rily a nd pe rma ne ntly re stric te d c la sse s o f ne t a sse ts will b e c o mb ine d into “ne t a sse ts with do no r re stric tio ns”

• Unre stric te d ne t a sse ts wo uld b e re na me d “ne t a sse ts witho ut do no r

re stric tio ns”

• E

xpa nde d disc lo sure s a b o ut na ture a nd a mo unt o f do no r re stric tio ns a nd a mo unts a nd purpo se s o f b o a rd-de sig na te d ne t a sse ts

E xpe nse s

• Disc lo sure o f e xpe nse s b y b o th na tura l & func tio na l c la ssific a tio n

(e xc luding inve stme nt e xpe nse s tha t ha ve b e e n ne tte d with inve stme nt re turn).

• I

nve stme nt e xpe nse s sho uld b e inc lude d in ne t inve stme nt re turn o n the Sta te me nt o f Ac tivitie s. Disc lo sure o f the a mo unt ne tte d in the re turn is no lo ng e r re q uire d.

• E

nha nc e d disc lo sure s re g a rding c o st a llo c a tio n a mo ng pro g ra m a nd suppo rt func tio ns.

Na tio na l L a b o r Unio n Co nfe re nc e 2017

ASU 2016-14 Mor e Spe c ific s

L iq uidity a nd a va ila b ility o f re so urc e s

• Disc lo sure o f ho w the Org a niza tio n ma na g e s its liq uid re so urc e s

to me e t g e ne ra l e xpe nditure s o ve r the ne xt ye a r.

• Qua ntita tive disc lo sure s to indic a te the a va ila b ility o f fina nc ia l

a sse ts (e xc luding pro pe rty, pla nt a nd e q uipme nt, pre pa id e xpe nse s a nd inve nto ry) to me e t c a sh ne e ds within o ne ye a r

• T

he re a re illustra tio ns o f the se disc lo sure s in the fina l ASU

Sta te me nt o f Ca sh F lo ws: Me tho ds o f pre se nting

• pe ra ting c a sh flo ws
• I

ndire c t o r Dire c t Me tho d Allo we d

• Re c o nc ilia tio n o f o pe ra ting ite ms no lo ng e r re q uire d whe n using

the dire c t me tho d.

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• Pla n Ac c o unting : De fine d Be ne fit Pe nsio n Pla ns

(T

• pic 960), De fine d Co ntrib utio n Pe nsio n Pla ns

(T

• pic 962), He a lth a nd We lfa re Be ne fit Pla ns (T
• pic

965): E mplo ye e Be ne fit Pla n Ma ste r T rust Re po rting ASU 2017-06

• Co mpe nsa tio n—Re tire me nt Be ne fits (T
• pic 715):

I mpro ving the Pre se nta tio n o f Ne t Pe rio dic Pe nsio n Co st a nd Ne t Pe rio dic Po stre tire me nt Be ne fit Co st ASU 2017-07

2017 Ac c ounting Standar d Update s

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F

isc a l ye a rs b e g inning a fte r De c e mb e r 15, 2018.

E ffe c tive

• E

a rly a do ptio n is pe rmitte d. Sho uld b e a pplie d re tro spe c tive ly in the ye a r upda te is first a pplie d

Applic a tio n

• I

ssue d to impro ve c o nsiste nc y in re po rting o f ma ste r trusts b e twe e n a ll type s o f e mplo ye e b e ne fit pla ns

• Upda te re q uire s a pla n’ s inte re st in tha t ma ste r trust a nd

a ny c ha ng e in tha t inte re st to b e pre se nte d in se pa ra te line ite ms in the sta te me nt o f ne t a sse ts a va ila b le fo r b e ne fits a nd in the sta te me nt o f c ha ng e s in ne t a sse ts a va ila b le fo r b e ne fits, re spe c tive ly.

Ge ne ra l Ove rvie w

ASU 2017-06 (Issue d F e br uar y 2017)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• Ca le nda r ye a r b e g inning a fte r 12/ 15/ 18 a nd

inte rim pe rio ds b e g inning a fte r 12/ 15/ 19

E ffe c tive

• E

a rly a do ptio n is pe rmitte d. Sho uld b e a pplie d re tro spe c tive ly in the ye a r upda te is first a pplie d

Applic a tio n

• Cha ng e s in pre se nta tio n, no t c a lc ula tio n.
• Re q uire s b ifurc a tio n o f ne t b e ne fit c o st. T

he se rvic e c o st c o mpo ne nt sho uld b e pre se nte d with o the r e mplo ye e c o mpe nsa tio n c o sts in o pe ra ting inc o me . T he o the r c o mpo ne nts will b e re po rte d se pa ra te ly o utside o f

• pe ra tio ns.

Ge ne ra l Ove rvie w

ASU 2017-07 (Issue d Mar c h 2017)

Na tio na l L a b o r Unio n Co nfe re nc e 2017

T ax Update

National L abor Union Confe r e nc e

Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F
• r

m 990

• No c ha ng e s to fo rm o r sc he dule s
• E

xte nsio n c ha ng e s – o nly ne e d o ne fo r 6 mo nths

• F
• r

m 5500

• Administra tio n Pe na ltie s
• No w $2,063 pe r da y fo r fa ilure o r re fusa l to file a c o mple te /

a c c ura te F

• rm 5500
• No w a djuste d a nnua lly fo r infla tio n
• Sc he dule H & I
• L

ine 5c

• I

f c o ve re d b y PBGC the n e nte r my PAA g e ne ra te d c o nfirma tio n numb e r fo r the PBGC pre mium

• I

RS c o mplia nc e q ue stio ns o n Sc he dule H & I , line s 40 a nd 6a -6d no t re q uire d

• Sa me fo r pre pa re r info rma tio n o n pa g e 1
• Sa me fo r Sc he dule R Pa rt VI

I

T ax Update – F

• r

m Change s

Na tio na l L a b o r Unio n Co nfe re nc e 2017 Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F
• r

m F inCE N Re por t 114 (F BAR)

• Due da te no w April 15 v. June 30
• E

xte nsio ns

• Auto ma tic fo r 6 mo nths
• No e xte nsio n fo rm c urre ntly re q uire d
• I

ndividua l with sig na ture a utho rity, b ut no fina nc ia l inte re st no t re q uire d to re po rt. F inCE N No tic e 2016-1 e xte nde d no n-filing until April 15, 2018

T ax Update – F

• r

m Change s

Na tio na l L a b o r Unio n Co nfe re nc e 2017 Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F
• r

m 5500, 1040

• Re ma in the sa me
• F
• r

m 1120 (1120-POL ) Cale ndar Y/ E

• Wa s Ma rc h 15 no w April 15
• E

xte nsio n: Sa me – Se pte mb e r 15

• F
• r

m W-2 & 1099’s

• Wa s due to I

RS/ SSA F e b rua ry 28 o r Ma rc h 31 if e -filing , no w due Ja nua ry 31 fo r W-2 & 1099-Misc

• Othe r 1099 due F

e b rua ry 28 o r Ma rc h 31 if e -filing

• F
• r

m 990

• Wa s Ma y 15, still Ma y 15
• E

xte nsio n wa s 2 fo r 3 mo nths e a c h no w o nly 1 fo r 6 mo nths e a c h

T ax Update – Due Date Change s

Na tio na l L a b o r Unio n Co nfe re nc e 2017 Na tio na l L a b o r Unio n Co nfe re nc e 2017

• F
• r

m 1065

• Wa s April 15, no w Ma rc h 15
• E

xte nsio n sa me - Se pte mb e r 15

• F
• r

m 1041

• Wa s April 15, still April 15
• E

xte nsio n wa s to Se pte mb e r 15, no w Se pte mb e r 30

• F
• r

m F inCE N Re por t 114

• Wa s June 30, no w April 15
• E

xte nsio n/ wa s no ne no w a uto ma tic to Oc to b e r 15

T ax Update – Due Date Change s

Na tio na l L a b o r Unio n Co nfe re nc e 2017 Na tio na l L a b o r Unio n Co nfe re nc e 2017

• E

BSA

• Co nc e rn fo r a sse ts who se va lue wa s ne ithe r re a dily

de te rmina b le o r o n a n e sta b lishe d ma rke t

• DOL

se nding o ut le tte rs to pla n o n this issue

• Pro po se d c ha ng e s to F
• rm 5500:
• Wo uld b e e ffe c tive fo r 2019 filing ye a r
• Co mme nt pe rio d e xte nde d to De c e mb e r 3, 2016
• OL

MS

• Po te ntia l fo r re insta te me nt o f I
• Ca p a udits

T ax Update – DOL

Na tio na l L a b o r Unio n Co nfe re nc e 2017 Na tio na l L a b o r Unio n Co nfe re nc e 2017

T hank You!

7501 Wisc o nsin Ave nue , Suite 1200 We st Be the sda , MD 20814 202.331.9880 pho ne  202.331.9890 fa x 866.464.2839 to ll-fre e  c a lib re c pa .c o m info @ c a lib re c pa .c o m

Na tio na l L a b o r Unio n Co nfe re nc e 2017