Dec 2021-Jan 2022_Advisor

BUDGETING

14 CEA ADVISOR DECEMBER 2021 - JANUARY 2022

CEA BUDGET SUMMARY: STRATEGIC PLAN AND BUDGET HIGHLIGHTS FOR FISCAL YEAR 2021-2022 The following represent ongoing

CEA Treasurer David Jedidian 2021 CEA FINANCIAL REPORT/ TREASURER’S STATEMENT CEA is required by its Constitution, Article V, Section E.12, to present an annual financial report to the membership. CEA retained the firm of Whittlesey, P.C., of Hartford, to perform the audit. Representatives of Whittlesey, P.C. presented the audit report for the fiscal year ending June 30, 2021, to the CEA Board of Directors in November 2021. The auditors presented an overview of the report and made no recommendations for changes in CEA’s accounting practices. The final audit report indicates that CEA adheres to generally accepted accounting principles that follow the recommendations of the Financial Accounting Standards Board in its Statement of Federal Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. CEA was issued a favorable audit opinion.

The CEAConstitution, Article X, Section D.3, requires a summary of the adopted CEA budget to be published in an official CEA publication. The budget for fiscal year 2021- 2022 is balanced with estimated income and expenses of $22,455,477. The approved budget includes a contingency expenditure of $25,000. The current membership level is based on a full-time equivalent (FTE) membership of 36,759 (no FTE change from last year). Existing income and expenses were reviewed to help limit any dues impact. There was a total decrease in income of $143,000. This was due to a decrease in tenant rent of $308,000 but an increase in NEA’s UniServ reimbursement of $165,000. Total expenses were reduced by $143,000. Some program reductions were made to offset increased expenditures in other areas. The program expense budget decreased by $378,678, and personnel expense increased by $235,678. The personnel area had an overall increase of 1.39% due to contractual agreements, a significant increase to the pension plan to meet the required AFTAP funding level but a decrease in funding the Retired Health and Welfare trust. The net effect was a zero dollar ($0) dues increase.

budget commitments as reflected in the final 2021-2022 budget as approved by the virtual 2021 CEA Representative Assembly: • Local Enrichment Grant Program, including the Urban Intern Program • Resources for NEA state delegate expenses associated with the NEA RA • CEAOrientation, Early Career Educators Conference, and Summer Conference • Resources related to professional issues for new and experienced teachers • Retirement workshops for members and resources to assist locals hosting retirement workshops • Resources for members to attend minority special interest caucus meetings • Resources for building coalitions for political involvement • Contractual obligations, including staff salaries and insurance benefits • Maintain appropriate computer and communication technology within CEA, as well as a disaster plan • Propertymanagement and maintenance of CEA building • Operation and staffing of UniServ field offices • Legal representation for our members

Key factors in the financial statement are: • Income gain of $1.9 million primarily due to an increase in investment income in the CEA investment plan savings of $640K primarily due to no travel and virtual meetings due to COVID-19. Non- cash depreciation expense was $812,000 • Pension and post- retirement insurance liability had a decrease of $12.9 million due to an increase in the discount rate and tremendous investments gains in the CEA Pension Plan and CEA Post-Retirement Health and Welfare Trust Plan • Net expense

U.S. Postal Service regulations require that the CEA Advisor Statement of Ownership be published annually.

• The financial

statements reflect a $14 million increase in net assets for the year

CEA’s crisis reserve

is $13.6 million, and designated reserve balances are $2.4 million as of June 30, 2021. Whittlesey, P.C. also audited the Connecticut Education Foundation, Inc. (CEF), the Connecticut Education

Association Political Action Committee (CEA-PAC), and the Health and Welfare Benefit Plan. They found that all of these entities also conformed to generally accepted accounting principles, and all received positive audit opinions. In summary, this year’s audit report reflects CEA as a financially stable organization. CEA’s accrued pension and other post-retirement liabilities decreased, total income increased, and expenses were within or below budget. The actuarial calculations are all standards with the adoption of the Federal Account Standard (FAS) 158. Total operating income other than investments and total expenses remained well within the budget. Even in these difficult times, CEA will continue to strive to provide organizational consistency and maintain a solid financial position for the future of the organization.