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

We lc ome De r r ic k Str osnide r , CPA Par tne r , Calibr e CPA Gr oup 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. Na tio na l L a b o r Unio n Co nfe re nc e 2017

About Calibr e CPA Gr oup, PL L C • F o 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 o c a ls, L o 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 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 outine 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 o 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 oac h • Jo hn L und, F o 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 oup 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 opic 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 o 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 o 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

National L abor Union Confe r e nc e 2017 National L abor Re por t F indings 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 Ar thur E . Budic h, CPA, CF E De r r ic k Str osnide r , CPA Par tne r , Calibr e CPA Gr oup Par tne r , Calibr e CPA Gr oup An Audit pa rtne r a nd me mb e r o f the F o re nsic & Risk 26+ ye a rs in pub lic a c c o unting fo c use d o n no t-fo r- Adviso ry te a m, Art ha s b e e n in pub lic a c c o unting pro fit e ntitie s inc luding la b o r unio ns, sing le , multiple sinc e 2003. Art ha s sig nific a nt a udit e xpe rie nc e with a nd multie mplo ye r b e ne fit pla ns, tra de ta x-e xe mpt o rg a niza tio ns inc luding tra de a nd a sso c ia tio ns, e duc a tio na l a nd c ha rita b le pro fe ssio na l a sso c ia tio ns, c ha rita b le fo unda tio ns, o rg a niza tio ns a nd po litic a l a c tio n c o mmitte e s. 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 ound & 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 ound & 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 iabilitie s ma y tate me nt A – Asse ts and L 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 o 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 o 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 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2013 2014 2015 2016 Gr oup A Gr oup B Gr oup 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 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2013 2014 2015 2016 Gr oup A Gr oup B Gr oup C Ave r age Na tio na l L a b o r Unio n Co nfe re nc e 2017

Char t 2 - Re sponse s to Se le c te d Que stions 10-17 Administe r s a Has a Had an Ple dge d Continge nt T r ust PAC Audit Asse ts L iabilitie s Gro up A 100% 92% 100% 69% 38% Ave ra g e Gro up B 87% 87% 100% 43% 26% Ave ra g e Gro up C 70% 61% 96% 22% 9% Ave ra g e 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

oup A t 2-Cash and Inve stme nts-Gr a b o r Unio n Co nfe re nc e 2017 Na tio na l L Char

oup B t 2-Cash and Inve stme nts-Gr a b o r Unio n Co nfe re nc e 2017 Na tio na l L Char

oup C t 2-Cash and Inve stme nts-Gr a b o r Unio n Co nfe re nc e 2017 Na tio na l L Char

e akdown a b o r Unio n Co nfe re nc e 2017 xpe nse Br Na tio na l L unc tional E GROUP A t 7 – F Char

e akdown a b o r Unio n Co nfe re nc e 2017 xpe nse Br Na tio na l L unc tional E GROUP B t 7 – F Char

e akdown a b o r Unio n Co nfe re nc e 2017 xpe nse Br Na tio na l L unc tional E GROUP C t 7 – F Char

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 o 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 otal F unc tional E xpe nse s Sc he dule s 11, 12 & 20 As a % of Sc he dule s 15-19 L ow 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 ow 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