Apr-Dec 2000 Hudson Package
June 1, 2001 Dear UC Clerical Employee, As you probably know, CUE (Coalition of University Employees) is the union elected to represent clerical employees at the University of California. As a matter of law, we represent all clerical employees, members and non-members, in matters of contract negotiations and grievances. All UC clericals are entitled to know about CUE, and we hope you will find the enclosed pages informational. If you are a newly hired employee, we welcome you to the University, and we are especially pleased to let you know about us. We think it is important that all clericals, including continuing staff, have a chance to review the enclosed information. Each month there is a deduction from your paycheck for union fees or dues. If you have not joined CUE, the deduction is shown as "agency fees." If you have completed a membership form and joined CUE, the deduction will be listed as "CUE dues." If you are not yet a member, we hope that you will take a minute to fill out the form on the last page of this packet and return it to CUE. Enclosed is a legal notice detailing the information required by law concerning the fair share fee, including, among other things, the amount of the fair share fee being collected, the basis for the calculation of the fair share fee, and a summary of the procedures for appealing or challenging all or any part of the fair share fee. Also enclosed are the following documents:- CUE guidelines for allocating chargeable and nonchargeable expenses;
- CUE fair share appeal procedures;
- Independently audited CUE financial statement with schedule of allocation of chargeable and nonchargeable expenses for the last three quarters of 2000;
- A CUE membership form.
What has the union done?
In December of 2000, CUE members overwhelmingly ratified CUE's first contract -- one of the strongest union contracts at the University of California. Our motto during the two-and-a-half years of bargaining was "Raises, Rights, Respect." We've come a long way toward reaching our goals, but we need to do much more in the next round of bargaining, and your membership really does make a difference. Here are some of our wins in this recently bargained contract:- Raises:
- A 7.8 percent across-the-board increase;
- Preservation of the merit/step system;
- A new step added to the top of each range;
- The transfer of funds from the incentive award program back to base-building wage increases.
- Rights:
- Groundbreaking new language governing work rules to help ensure rules that are necessary and reasonable, not arbitrary.
- Overtime must be paid as wages, unless the employee requests comp time instead;
- No "less-than-satisfactory" performance evaluations, unless the supervisor has notified the employee in advance of the deficiencies and how to correct them.
- Respect:
- Contract language on "Respectful and Fair Treatment," a UC first, requiring that employees be treated fairly and respectfully;
- Improved ability to grieve complaints of discrimination.
What's next for UC's clerical staff?
Our first contract will expire in September 2001. CUE started bargaining for the next contract in May 2001. Your decision to join the union can make a big difference in CUE's ability to bargain a strong second contract. The University looks at the size of CUE's membership to determine how seriously they must take our demands during negotiations. Each new member means more leverage to fight for higher wages, better working conditions and more respect. We urge you to fill out the membership form and to mail it in right away. Sincerely, The CUE Executive BoardCoalition of University Employees
The law requires employees who choose not to become members of the union that represents them to pay a fair share fee to support the activities of the union that benefit all employees. In your case, the Coalition of University Employees is that union. The fair share fee is based on CUE expenditures for activities or projects undertaken by the union to represent clerical employees with respect to their terms and conditions of employment. These expenses are considered "chargeable" to fee-payers. CUE has identified those activities and expenditures in the Guidelines For Allocating Chargeable And Nonchargeable Activities And Expenditures, which is enclosed. These "chargeable" expenditures include the cost of contract negotiations, handling work-related problems through the grievance procedure, meetings with management, arbitrations and union administration. The fair share fees do not cover any "nonchargeable" expenditures, for example, member-only benefits, charitable donations, and recruitment of new members. Although not required by law, CUE, as a matter of policy, has limited fair share fees to no more than the rate determined to be "chargeable." Accordingly, fair share fee-payers will not be required to file any objection or request that they not pay for nonchargeable expenditures because all non-chargeable expenditures have been automatically removed from the calculation of the fair share fee for all payers. Dues and Fees
CUE's dues are the lowest of any union at UC, and probably among the lowest in the nation. At 0.5% of monthly salary, CUE dues amount to less than one hour of your wages per month. Fair share fees (the paying of which does not make you a member) are a percentage of dues, and are based on an independent audit of the last three quarters of 2000. That figure will be applied for fair share fees collected beginning July 1, 2001 through March 31, 2002. The results of the independent audit indicate that 97.7% of CUE's expenses are chargeable to fee-payers. However, for the period of July 1, 2001 through March 31, 2002, CUE will only collect fees in the amount of 95% of regular dues. This lower amount is designed to ensure that no "nonchargeable" expenses whatsoever are inadvertently charged to fee-payers. Fair share fees will amount to 0.475% of gross monthly salary. Financial Report
Enclosed is an audited financial report for CUE for the last three quarters of 2000, which shows how much was spent on activities that were chargeable to fee-payers. While CUE believes that the law allows for flexibility as to the audit period selected for calculation of agency fees, simply to avoid unnecessary litigation, CUE has for this notice selected the last nine months of 2000 as the basis for calculating and collecting the chargeable portion of agency fees for the nine-month period of June 1, 2001 to March 31, 2002. The Report itemizes and describes the major categories of expenditures by the Coalition of University Employees and indicates which are, and which are not, chargeable to fee-payers. The amounts in each category are taken from an independent audit based on CUE's financial records and supporting documents for the last three quarters of 2000. Challenges
The law entitles you to file a challenge regarding the calculations and allocations of chargeable and nonchargeable expenditures, and have your challenge be resolved by a neutral arbitrator appointed by the American Arbitration Association. If you file a challenge, your fee, or the portion at issue, will remain in an interest-bearing escrow account until the arbitrator rules on your challenge. At the arbitration, it will be CUE's burden to prove the accuracy of its calculations. Clerical workers employed in the CUE-represented unit as of June 1, 2001 who wish to file a challenge must do so by letter postmarked no later than July 6, 2001 addressed to CUE, 2855 Telegraph Ave., Suite 302, Berkeley, CA 94705. Clerical workers who are hired into the CUE unit after June 1, 2001 must file any challenge they wish to bring, by letter postmarked no later than 30 days from receipt of this notice. If we do not hear from you by the specified deadline, we will assume you accept the fair share fee amount and related allocations and calculations as applicable for the period July 1, 2001 to March 31, 2002. If you file a challenge for arbitration, please state your name, home address, social security number or employee I.D. number, and campus. Any challenge should, if possible, include the grounds of the challenge so that the union may be able to consider those grounds and determine whether any reduction in fair share amount is warranted before the matter proceeds to a hearing. A detailed description of the appeals procedure for challenges is enclosed, and should be reviewed carefully. Religious Objections
You may, if eligible, obtain a religious exemption from paying agency fees to the union only to the extent permitted by law and pursuant to section 14 of the CUE Fair Share Appeal Procedure, which is enclosed. Requesting employees who qualify for religious or conscientious exemption under the law shall have an amount equal to the fair share fee for the applicable fee-payer year or other period deducted from their paychecks and remitted to a nonreligious, nonlabor charitable fund exempt from taxation. Joining CUE
We encourage everyone to become a member instead of a fee-payer, by filling out the enclosed membership form, and returning it soon. The CUE Executive Board
FAIR SHARE FEE APPEAL PROCEDURES
- A fair share fee payer is an individual who chooses not to have the rights of union membership, but is still required by law, under a fair share fee arrangement or provision with the employer, to pay to the union, as a condition of employment, fair share service fees (also known and referred to in this document as "fair share fees") germane to the Union's functions as the exclusive bargaining representative. Fair share fee payers do not have the right to vote, hold office, or be a candidate for office in the Union; nor may they participate in or attend any functions of the Union that are limited to Union members. In addition, fair share fee payers have no right to vote on dues increases or on contracts submitted to the membership for ratification. These rights are privileges of Union membership and are accorded only to full Union members.
- Although not required by law, the Union, as a matter of policy, will collect from fair share fee-payers only such amounts related to the Union's chargeable expenditures. Fair share fees will not be collected to cover any of the Union's nonchargeable expenditures. Accordingly, fair share fee-payers will not be required to file any objection or request that they not pay for nonchargeable expenditures. (Union members, whose membership becomes temporarily suspended because of delinquency in dues payments or other reasons, are not considered to be fair share fee-payers and will continue to be charged dues, absent an affirmative written declaration to the Union that they wish to become fair share fee-payers.) The Union has identified those activities and expenditures that it considers chargeable or nonchargeable in its Guidelines For Allocating Chargeable And Nonchargeable Activities And Expenditures (hereafter the "Guidelines"), which document is incorporated herein by reference.
- The Union shall issue at least annually a notice to fair share fee-payers that advises them of at least the following:
- the amount of the fair share fee which is to be expressed as a percentage of the periodic dues per member based upon the chargeable expenditures identified in the notice;
- the basis for the calculation of the fair share fee; and
- a brief summary of these procedures for appealing or challenging all or any part of the fair share fee.
- The fees paid by fair share fee-payers shall be calculated by the Union as follows: The Union uses a fiscal year of January 1 to December 31. In about January through February of each year, the Union will close out its financial books and records for the previous year or other applicable period, and have those books and records audited by an independent accountant. The auditor will provide the Union with a report verifying the amounts spent in each of the Union's major categories of expenditures. The Union shall also have the independent accountant's audit and determine its total operating expenditures for all purposes during the prior fiscal year or applicable period and separately identify those expenditures made for chargeable activities and those made for nonchargeable activities. The auditors shall then calculate the ratio of chargeable expenditures to total expenditures. This ratio or percentage shall be the basis for the fair share fees collected from all fair share fee-payers for the upcoming fee-payer year or other applicable period. In the future, the Union intends to calculate the amount of the fair share fee, including the amount as expressed as the chargeable percentage of regular dues, which all fair share fee-payers will pay for the upcoming "fee-payer year", which is the 12-month period beginning April 1 of the current year and ending March 31 of the following year, based on the Union's expenditures for the previous fiscal year or applicable period. (As noted, the fair share fee calculations in the June 1, 2001 Notice will be based on an independent audit of the Union's expenditures for the last three quarters of 2000 and shall cover a nine-month collection period ending March 31, 2002.)
- All fair share fee payers shall have the right to challenge the Union's calculation of the fair share fee and the allocation of chargeable and nonchargeable expenditures in a reasonably prompt hearing before an impartial arbitrator. Fair share fee-payers who wish to participate in such a hearing before an arbitrator and otherwise challenge the amount of the fee, the calculations and/or the allocations applicable for the upcoming fee-payer year, or other period, must so indicate in writing by letter postmarked no later than thirty (30) days after distribution of the periodic notice, addressed to CUE at 2855 Telegraph Ave., Suite 302, Berkeley, California 94705. Challenges shall not be presumed. Accordingly, any fair share fee-payer who fails to submit a timely challenge to the amount of the fair share fee and the related calculations and allocations shall be deemed to have waived the right to pursue a challenge in any arbitration or legal proceeding. Any challenge should, if possible, include the grounds of the challenge so that the Union may be able to consider those grounds and determine whether any reduction in the fair share fee amount is warranted before the matter proceeds to a hearing.
- During the period while any challenge is pending, the Union will place in an interest-bearing escrow account held in an independent financial institution an amount to equal the portion of those fees reasonably in dispute collected from challengers. Such fair share fees collected from fee-payers receiving concurrent notice with the collection shall also be placed in the escrow account until the thirty (30) day period for filing a challenge has passed or until arbitration of any challenge filed by the payer, whichever may be applicable. The Union will, when necessary, increase or decrease the amount held in escrow to reflect, with reasonable accuracy, the amount of all fair share fees reasonably in dispute that are subject to these escrow requirements. Escrowed fees will be released to the Union after either mutual agreement between the challenger and the Union as to the proper amount of the fair share fee or the decision of the impartial arbitrator, whichever comes first. Challengers shall promptly receive any rebate that may be ordered by the arbitrator or agreed to by the Union, plus the appropriate amount of interest earned in the escrow account on such amount.
- Within 45 days of the last day for filing a challenge, the Union shall refer any timely filed challenges to and request in writing a prompt hearing from the American Arbitration Association ("AAA"). All timely challenges shall be resolved pursuant to the AAA Rules For Impartial Determination Of Union Fees, except to the extent those Rules exceed legal requirements and are inconsistent with these procedures, which shall in such cases govern. The impartial arbitrator shall be appointed by the AAA pursuant to its Rules. Unless otherwise ordered by the arbitrator or agreed to by all parties, the challenges shall be consolidated and heard in a single proceeding in Berkeley. Any time prior to the start of the hearing, any party may make a motion to the arbitrator contesting consolidation of the hearing. Only one consolidated arbitration hearing shall be held each year or other applicable period, unless otherwise agreed by the Union.
- The arbitration hearing shall begin no later than thirty (30) days after the Union's written referral to AAA. Any challenger who does not wish to attend the hearing may submit his or her views in writing to the arbitrator prior to the close of the hearing, provided that the Union timely receives a copy and an opportunity to make any objections. If no party desires a hearing, the arbitrator shall set a date by which all written submissions shall be received, and shall decide the case based on the records submitted. The hearing shall be fair, informal proceedings conducted in conformance with basic precepts of due process. The Union shall bear the burden of proof in justifying its calculations.
- The parties may participate in the hearing in person, or through an attorney or other representative.
- The arbitrator shall issue a written decision no later than thirty (30) days after the close of the hearing, determining whether the Union properly calculated the chargeable portion of its total expenditures for the applicable audited period and the proper amount of the fair share fee, and if not, what those amounts should be. The arbitrator shall set forth his or her legal and arithmetic reasons for the decision. The impartial arbitrator shall apply recognized legal principles applicable to public Universities in which CUE fair share fee-payers are employed and shall have no authority to order any rebate or reduction unless required by applicable law.
- Objecting fair share fee-payers shall pay the expenses for their own representation related to said arbitration (e.g., travel costs, witness fees, lost time/wages, attorney fees, etc.). Absent objection, the Union shall pay the fees of the impartial arbitrator and the costs of any arbitration hearing.
- The Union shall promptly take all steps reasonably necessary to implement the arbitrator's decision.
- The Union reserves the right to waive arbitration hereunder and agree instead to the adjustments requested by any challenging fair share fee-payer.
- Any employee in the CUE bargaining unit covered by the fair share fee arrangement with the University may obtain a religious exemption from paying agency fees to the union only to the extent permitted by law and provided the following is satisfied. Any such employee must send a written request, addressed to CUE at 2855 Telegraph Ave., Suite 302, Berkeley, California 94705, verifying membership in a religion, body or sect that has historically held conscientious objections to joining or financially supporting public employee organizations, or verifying a bona fide religious conviction that prohibits payment of agency fees to a union. Requesting employees who qualify for conscientious exemption under the law shall have an amount equal to the fair share fee for the applicable fee-payer year deducted from their paychecks and remitted to a nonreligious, nonlabor charitable fund exempt from taxation. The employee shall select one of the following funds designated by the University and CUE to receive such deductions from the employee's paycheck: Elisabeth Glaser Pediatric Aids Foundation; Komen Foundation for breast cancer research; and Oxfam America. Any employee in the CUE bargaining unit with a religious exemption who requests individual representation concerning a grievance will be charged a reasonable fee for such representation to the fullest extent under the law.
- The Union reserves the right to modify its policy and procedures herein at any time if, in its opinion, such change is warranted by law, or is otherwise appropriate pursuant to union policy.
CHARGEABLE AND NONCHARGEABLE ACTIVITIES AND EXPENDITURES INTRODUCTION
As a general matter, the U.S. Supreme Court has held that agency fee payers "may be compelled to pay their fair share of not only the direct costs of negotiating and administering a collective bargaining contract and of settling grievances and disputes, but also the expenses of activities or undertakings normally or reasonably employed to implement or effectuate the duties of the union as the exclusive representative of the employees in the bargaining unit". Ellis v. BRAC 466 U.S. 435 448 (1984); Chicago Teachers Union v. Hudson 475 U.S. 292 (1986) and related state law. Conversely, expenditures for political or ideological purposes and for activities beyond those reasonable or germane to collective bargaining, and other nonrepresentational purposes may not be charged to agency fee payers who may so object. Id.
- CHARGEABLE ACTIVITIES
The following are the general categories of activities which are germane to the collective bargaining process or reasonably employed to implement or effectuate the representational duties of the union, and, therefore, fully chargeable to agency fee payers. For an activity to be chargeable to all Union-represented employees, all employees, including agency fee payers, must be eligible to enjoy the benefit of the activity.- Contract Negotiations
- all preparation for negotiations, including research, formulating goals, drafting proposals, development of supporting data, surveys, employee education, and meetings held in anticipation of negotiations;
- actual negotiation of the contract and all related activities;
- lawful economic, collective and solidarity activities with respect to contract negotiations and labor- management disputes.
- Contract Administration - Grievance Adjustment and Arbitration
- handling employees' questions and complaints about working conditions, benefits, the meaning of specific contract clauses, and contract rights generally
- attendance at stewards' meetings and all grievance committee work
- meetings and discussions, with employer and/or Local Union representatives, relevant to contract meaning or grievances
- facts investigation and development of data bases in support of grievance adjustment or arbitration, including all related research, technical assistance and staff support
- all involvement in arbitration proceedings, including preparation, representation, post-arbitration efforts to secure compliance, and all associated costs.
- Unit Membership Services and Other Activities Related to Collective Bargaining
Other activities that are designed to educate bargaining unit employees concerning their employment, including all communication of union policy to represented employees regarding representational issues, and all assistance and information provided to represented employees concerning employment-related, community and governmental services to which they are entitled. - Internal Union Governance and Administration
- executive - elections, internal union meetings, conventions
- judicial - interpretation and enforcement of union constitution, rules, bylaws
- financial - accounting, data processing, monitoring membership status and dues transmittal, auditing, etc.
- local-local relations - coordination of representation among local chapters
- all other standard features of union internal operations related to governance, administration, coordination, and overall union cohesion
- Training and Education Re Representational Matters
All education, training programs, conferences, (including preparation and support work) related to representational activities described herein. - Certain Lobbying Activities Re Contracts
Although most lobbying activities are nonchargeable, lobbying regarding the following matters are clearly chargeable:- contract ratification
- contract implementation
- Activities To Elicit Outside Support As To Collective Bargaining Or Representational Matters
All such activities are chargeable if they directly concern and seek support for Union collective bargaining or other representational matters germane to the collective bargaining process such as those matters described herein. - Activities Designed To Preserve Established Bargaining Unit Rights And Support
All activities related to increasing or preserving the support of bargaining unit employees as to collective bargaining and representational matters as well as activities designed to preserve or expand the jurisdiction of established bargaining units whereby employee work opportunity or job security is protected or improved. However, activities related to convincing agency fee and nonunion bargaining unit members to become union members are nonchargeable. - Litigation Re Representational Matters
All litigation-related activities, including, for example, responding to legal discovery requests, preparation for and attendance at legal proceedings, consultation with legal counsel, and all meetings and correspondence regarding such litigation, are fully chargeable, provided the litigation relates to representational, chargeable matters, as described above.
- Contract Negotiations
- NONCHARGEABLE ACTIVITIES
The following are examples of activities which cannot be charged to objectors:- Political Activities - Partisan or Nonpartisan
- voter registration drives; support in any form for any political party or candidate
- activities related to any pending legislation or ballot initiative
- Activities Primarily Directed Towards Persons Not represented By the Union Regarding Non-representational Matters
- public relations activities (e.g., media events, meetings, conferences, lectures, speeches) primarily directed to persons not represented by the union, or to outside organizations, where those activities are unrelated to the union's institutional interests or the employment-related interests of represented employees;
- contributions of money or services to outside labor, educational and charitable groups
- expenditures related to U.S. foreign relations or international affairs
- affiliation fees and activities related to other unions or labor councils.
- Organizing Activities
Any activity designed to acquire new members or obtain new representation rights is deemed not chargeable. However, activities designed to increase or preserve the support of bargaining unit employees with respect to collective bargaining, labor-management issues and other representational matters, as described in category 8 above, are chargeable. - Training & Education Re Nonrepresentational Matters
All education, training programs, conferences (including preparation and support work) regarding nonrepresentational matters are nonchargeable. - Litigation Re Nonrepresentational Matters
All litigation-related activities, as described in category 9 above, are nonchargeable if the litigation relates to nonrepresentational matters as described herein.
- Political Activities - Partisan or Nonpartisan
- OTHER EXPENSES
- Union Literature
Union literature expenses are only chargeable if they are related to matters concerning chargeable activities. Jokes and other "filter" designed to enhance readability are chargeable if content neutral (e.g., safety tips, nonpolitical humor) and are nonchargeable if they relate directly to a nonchargeable activity (e.g., a "political" joke or commentary). The allocation of expenses related to preparation and distribution of Union literature to bargaining unit members shall be determined based on the ratio of total column inches devoted to chargeable and nonchargeable matters for the entire year. - Salaries
Salaries of officers and union representatives are allocated based on the time spent by such personnel on representational and nonrepresentational activities, respectively. The salaries of office, clerical and technical personnel are allocated between representational and nonrepresentational activities in the same percentage as the officers and union representatives whom they assist. - Fringe Benefits - are allocated in the same ratio as the salaries they supplement.
- Officer and Employee Travel Expenses
Travel expenses are allocated in the same ratio as the salary of the officer or employee who incurs the expense. - Overhead Expenses (direct and indirect)
Overhead expenses are allocated in the same ratio as the salaries of the officers and union representatives. These expenses include among other things:- building depreciation
- office rent
- maintenance, utilities, taxes
- insurance
- office expenses, telephones, postage, etc.
- automobile expenses
- Legal
Legal fees and expenses are allocated based on the time and fees spent on representational and nonrepresentational matters, respectively.
- Union Literature
Certified Public Accountants and Consultants
5940 College Ave., Suite C
Oakland, CA 94618
Telephone (510) 652-1000
Fax (510) 654-2363
www.hanklevycpa.com Independent Auditors' Report
Coalition of University Employees We have audited the accompanying statement of assets, liabilities, and net assets-cash basis of Coalition of University Employees, a nonprofit organization, as of December 31, 2000 and the related statements of support, revenue, and expenses and other changes in net assets-cash basis for the nine-month period then ended. These financial statements are the responsibility of Coalition of University Employee's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the financial statements referred to in the first paragraph taken as a whole. The accompanying information is presented for purposes of additional analysis and is not a required part of the above financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements referred to above and, in our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coalition of University Employees, as of December 31, 2000 and the results of its activities and changes in its net assets for the nine-month period then ended in conformity with the basis described above. Signature of Henry C. Levy and Company April 30, 2001
Oakland, California
STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS-CASH BASIS
December 31, 2000
| ASSETS | |
| Assets | |
| Cash | 480,782 |
| Security Deposit | 9,702 |
| Furniture and Equipment, net of accumulated depreciation | 20,119 |
| Total Assets | 510,603 |
| LIABILITIES AND NET ASSETS | |
| Liabilities | |
| Accrued Employee Compensation | 10,426 |
| Total Liabilities | 10,426 |
| Net Assets | |
| Unrestricted: | 500,177 |
| Total Liabilities and Net Assets | 510,603 |
STATEMENT OF REVENUE, SUPPORT, EXPENSES
AND OTHER CHANGES IN NET ASSETS - CASH BASIS
FOR THE NINE-MONTH PERIOD ENDED DECEMBER 31, 2000
| Revenues and Other Support: | |
| Members' Dues | $ 1,110,395 |
| Other Revenue | $ 20,915 |
| Total Revenues | 1,131,310 |
| Expenses | |
| Arbitration & Bargaining: | |
| Grievance Processing | 24,635 |
| Advertising | 46,104 |
| Travel, Lodging & Meals | 65,225 |
| Contract Campaign Materials | 12,302 |
| Mediation | 1,125 |
| Personnel Expenses: | |
| Employee Compensation | 143,960 |
| Employee Benefits | 3,960 |
| Payroll Taxes | 13,824 |
| General & Administrative: | |
| Bank Service Charges | 3,094 |
| Depreciation Expense | 863 |
| Liability Insurance | 1,867 |
| Office Supplies | 6,954 |
| Interest Expense | 3,028 |
| Rent | 29,599 |
| Professional Fees | 106,573 |
| Telecommunications & Telephone | 36,079 |
| Miscellaneous Expenses | 7,390 |
| Other Expenses: | |
| Postage and Delivery | 41,777 |
| Printing and Reproduction | 33,142 |
| Officer Election Expenses | 6,995 |
| Conferences & Workshops | 848 |
| Donations | 1,056 |
| Travel, Lodging & Meals | 31,759 |
| Total Expenses | 622,159 |
| Change in net assets | 509,151 |
| Net assets - April 1, 2000 | (8,974) |
| Net assets - December 31, 2000 | $ 500,177 |
NOTES TO THE CASH BASIS FINANCIAL STATEMENTS
| Computers and Equipment | 5 years |
| Furniture and Fixtures | 7 years |
| Leasehold Improvements | life of lease |
| Office Equipment | $ 21,175 |
| Less: Accumulated Depreciation | |
| and Amortization | (1,056) |
| $ 20,119 |
| Year ending December 31, | Operating leases |
| 2001 | $ 72,967 |
| 2002 | $ 54,621 |
| 2003 | $ 19,142 |
| Total minimum lease payments | $ 146,730 |
Independent Auditors' Report on Schedule of Chargeable and Nonchargeable Expenses
Certified Public Accountants and Consultants
5940 College Ave., Suite C
Oakland, CA 94618
Telephone (510) 652-1000
Fax (510) 654-2363
www.hanklevycpa.com
Coalition of University Employees Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of Chargeable and Non-Chargeable expenses is presented for the purpose of additional analysis and is not a required part of the basic financial statements. This additional information is the responsibility of the Coalition of University Employees's management. Such information has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Signature of Henry C. Levy and Company April 30, 2001
Oakland, CA
SCHEDULE OF CHARGEABLE AND NONCHARGEABLE EXPENSES
FOR THE NINE MONTH PERIOD ENDED DECEMBER 31, 2000
| NON- | |||
| EXPENSES | TOTAL | CHARGEABLE | CHARGEABLE |
| Arbitration & Bargaining: | |||
| Grievance Processing | $ 24,635 | 24,635 | - |
| Advertising | 46,104 | 46,104 | - |
| Travel, Lodging, & Meals | 65,225 | 65,225 | - |
| Contract Campaign Materials | 12,302 | 12,302 | - |
| Mediation | 1,125 | 1,125 | - |
| Personnel Expenses: | |||
| Employee compensation | 143,960 | 141,901 | 2,059 |
| Employee Benefits | 3,960 | 3,903 | 57 |
| Payroll Taxes | 13,824 | 13,626 | 198 |
| General & Administrative: | |||
| Bank Service Charges | 3,094 | 3,050 | 44 |
| Depreciation Expense | 863 | 851 | 12 |
| Liability Insurance | 1,867 | 1,840 | 27 |
| Office Supplies | 6,954 | 6,855 | 99 |
| Interest Expense | 3,028 | 2,985 | 43 |
| Rent | 29,599 | 29,265 | 334 |
| Professional Fees - Accounting | 106,573 | 106,573 | - |
| Telecommunications & Telephone | 36,079 | 35,944 | 135 |
| Miscellaneous Expenses | 7,390 | 5,599 | 1,791 |
| Other Expenses: | |||
| Postage and Delivery | 41,777 | 37,573 | 4,204 |
| Printing and Reproduction | 33,142 | 30,833 | 2,309 |
| Officer Election Expense | 6,995 | 6,995 | - |
| Conferences & Workshops | 848 | 748 | 100 |
| Donations | 1,056 | - | 1,056 |
| Travel, Lodging & Meals | 31,759 | 29,903 | 1,856 |
| Total Expenses | 622,159 | 607,835 | 14,324 |
| Percent Chargeable/Nonchargeable | 97.70% | 2.30% |
NOTES TO THE CASH BASIS SCHEDULE OF
CHARGEABLE AND NONCHARGEABLE EXPENSES
- Contract preparation, negotiation and ratification work
- Contract administration including grievance handling and arbitrations
- Bargaining Unit Membership education related to collective bargaining
- Internal union governance and administration
- Training and education on representational matters
- Lobbying activities concerning contract ratification and contract implementation
- Activities to elicit outside support as to collective bargaining or representational matters
- Activities designed to preserve established bargaining unit rights and support
- Litigation concerning representational matters
- Partisan or nonpartisan political activities including voter registration drives, support for political candidates or parties, and activities related to pending legislation or ballot initiatives
- Activities directed towards persons not represented by the union including contributions to outside labor or charitable organizations and affiliation fees or activities related to other unions or labor councils
- Organizing activities designed to acquire new members or obtain new representation rights
- Training and education on nonrepresentational matters
- Litigation on nonrepresentational matters
- Arbitration & Bargaining: Expenses for arbitration and bargaining are fully chargeable. They include grievance processing, advertising, travel, lodging and meals, contract campaign materials, and mediation expenses related to bargaining and labor relations issues.
- Personnel Expenses: Personnel expenses include employee compensation, employee benefits, and payroll taxes. They are allocated by a ratio of time spent in chargeable and nonchargeable activities. The ratio is based on guidelines developed by CUE's management in consultation with CUE's legal counsel as reflected in the Staff Activity Reports. For the period being reported on, 98.57% of staff time was devoted to chargeable activities.
- General & Administrative Expenses: General and administrative expenses include bank service charges, depreciation, liability insurance, office supplies, interest, rent, professional fees, telecommunications & telephone, and miscellaneous expenses. Allocations of these expenses are based on the salary ratio except for the following: Rent and telephone for the statewide office is 100% chargeable, professional fees-accounting are 100% chargeable, and miscellaneous expenses are allocated based on specific identification. Miscellaneous expenses represent out of pocket expenditures by officers and staff, primarily for copying, postage, travel, and meals for union governance activities.
- Postage, Delivery, Printing, and Reproduction: Postage, delivery, printing, and reproduction expenses are for both general & administrative and arbitration & bargaining purposes. Printing charges and mailing house handling fees related to contract ratification, contract enforcement, and newsletters are specifically identified while other postage, delivery, printing and reproduction charges are allocated on the salary ratio.
- Officer Election Expense: Expenses related to the election of CUE officers are fully chargeable.
- Conference & Workshops: Conference and workshops are allocated on specific identification.
- Donations: Donations are nonchargeable.
- Legal: Legal fees incurred in representing the union and members of the unit in grievances and arbitrations, unfair labor practices, administrative proceedings, investigating, researching and attempting to resolve issues which involve the rights of unit members are fully chargeable. All legal fees paid during the period were chargeable.
- Donated Services: Donated services are allocated according to the chargeable nature of the activity. No expenses were recognized this period, see note 6. These services, if recognized would have been fully chargeable since they concern contract negotiations.