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The carrying amounts of cash equivalents; grants, contracts,
and other receivables; accounts payable and accrued expenses;
and deposits held in custody for CUNY colleges approximate fair
value due to the short maturity of these financial instruments.
The carrying amount of the mortgage loan payable approxi-
mates fair value because the loan bears interest at a rate that is
not significantly different than current market rates for loans with
similar maturities and credit quality.
(n) Income Taxes
The effects of uncertain tax positions are recognized only if those
positions are more likely than not of being sustained. No such
positions have been recorded in the consolidated financial state-
ments as of June 30, 2011 or 2010.
(3) Investments
Investments held by the Foundation consist of the following at June 30, 2011 and 2010:
2011
2010
Fair Value
Cost
Fair Value
Cost
U.S. money market
$ 7,925,793 7,925,793
7,021,321 7,021,321
U.S. Treasury bills
53,386,137 53,423,829
39,929,532 39,929,826
U.S. government agency obligations
14,309,461 14,304,773
16,391,134 16,397,960
U.S. equity securities
3,399
27,756
28,828
59,126
Total
$75,624,790 75,682,151
63,370,815 63,408,233
The Organization categories its financial and nonfinancial
assets and liabilities into a three-tiered hierarchy using the follow-
ing guidelines:
•
Level 1 inputs
are quoted prices (unadjusted) in active markets
for identical assets or liabilities that the Foundation has the
ability to access at measurement date.
•
Level 2 inputs
are inputs other than quoted prices included in
Level 1 that are either directly or indirectly observable for the
assets or liabilities.
•
Level 3 inputs
are unobservable inputs for the assets or liabilities.
At June 30, 2011 and 2010, the Foundation’s investments are
categorized as Level 1.
Components of investment return, including interest on cash
and cash equivalents, are as follows for the years ended June 30,
2011 and 2010:
2011
2010
Interest income
$503,355
498,898
Net depreciation in fair value
of investments
(44,648)
(42,157)
Total
$ 458,707
456,741
(4) Pension and Other Retirement Benefits
Eligible employees of the Foundation and certain project personnel
are covered under a defined contribution pension plan established
with Teachers Insurance and Annuity Association (TIAA). The
Foundation’s contribution to the pension plan is based on specified
percentages, ranging from 8% to 14%, of each employee’s annual
salary. Total pension expense for the years ended June 30, 2011
and 2010 was approximately $10,515,000 and $8,975,000, respec
tively. There are no unfunded past service costs.
In addition to providing pension benefits, the Foundation also
provides postemployment benefits, including salary continuance,
to certain employees. The cost of these benefits is accrued over
the employees’ years of service. Postemployment benefits liability
included in accounts payable and accrued expenses was approxi-
mately $1,660,317 and $1,509,077 in 2011 and 2010, respectively.
The Foundation also provides certain healthcare benefits to
retired employees (including eligible dependents) who have a
combination of age and years of service equal to 70 with a mini-
mum age of 55 and at least 10 years of continuous service. The
Foundation accounts for postretirement medical and other non-
pension benefits provided to retirees on an accrual basis during
the period of their employment.
The Foundation charges grants and contracts, as well as the
administrative services department for postretirement benefit
costs through the application of a fringe benefit rate, an element
of which is based upon the estimated amount of such costs.
In addition, a charge or credit is recognized in administrative
services expenses for the difference between the actuarially
determined net periodic postretirement benefit cost and the
amount funded (claims paid and contributions to the trust).
The Research Foundation of the City University of New York
The Research Foundation of The City University of New York