Institutional Federal Compliance Report 2021

104 • Notes to Basic Financial Statements _________________________________________________________________________

Business-Type Activities SUNY has entered into contracts for the construction and improvement of various projects. At June 30, 2018, these outstanding contractual commitments totaled approximately $690 million. CUNY Senior Colleges have also entered into contracts for the con- struction and improvement of various capital assets. At June 30, 2018, these outstanding contractual com- mitments totaled approximately $248 million. SUNY and CUNY Senior Colleges have insurance coverage for residence halls, but in general, do not insure educational facilities, contents or related risks and do not insure vehicles and equipment for claims and assessments arising from bodily injury, property Note 11 Litigation The State is a defendant in numerous legal proceed- ings pertaining to matters incidental to the perfor- mance of routine governmental operations. Such litigation includes, but is not limited to, claims asserted against the State arising from alleged torts, alleged breaches of contracts, condemnation proceedings, and other alleged violations of State and federal laws. Included in the State’s outstanding litigation are a number of cases challenging the legality or the ade- quacy of a variety of significant social welfare programs, primarily involving the State’s Medicaid and mental health programs. Adverse judgments in these matters generally could result in injunctive relief coupled with prospective changes in patient care that could require substantial increased financing of the litigated pro- grams in the future. Note 12 Retirement Systems New York State and Local Retirement System The Office of the State Comptroller administers the following plans: the New York State and Local Employ- ees’ Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS), which are collectively referred to as the New York State and Local Retirement System (the System). The net position of the System is held in the New York State Common Retirement Fund (the Fund), which was estab- lished to hold all assets and record changes in fiduciary net position allocated to the System. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System.

damages, and other perils. Unfavorable judgments, claims, or losses incurred by SUNY and CUNY Senior Colleges are covered by the State on a self-insured basis. The fidelity insurance the State has on State employees includes SUNY and CUNY Senior Colleges employees. The Lottery is party to a number of contracts with vendors relating to maintaining the traditional lottery gaming network, supplying instant game tickets, maintaining instant game ticket self-service terminals, supplying video lottery gaming machines to 10 video lottery gaming facilities, and providing a central processing system for the operation of video lottery gaming. With respect to pending and threatened litigation, the State has reported $820 million in the primary government, $64 million is related to governmental activities and $755 million pertains to SUNY. SUNY reported $741 million as of December 31, 2018 for awarded claims, anticipated unfavorable judgments, and incurred but not reported loss estimates related to medical malpractice claims and the remaining $15 million is due to a timing difference between the State’s and SUNY’s fiscal year end. In addition, the State is party to other claims and litigation that its legal counsel has advised may result in possible adverse court decisions with estimated potential losses of approximately $196 million. ERS and PFRS are cost-sharing, multiple-employer, defined benefit pension plans. The Public Employees’ Group Life Insurance Plan (GLIP) provides death ben- efits in the form of life insurance. For financial report- ing purposes, GLIP amounts are apportioned to and included as part of either ERS or PFRS. The System issues a publicly available Compre- hensive Annual Financial Report that includes financial statements, expanded disclosures, and required sup- plementary information for the System. The report may be obtained by writing to the New York State and Local Retirement System, Office of the State Comp- troller, 110 State Street, Albany, New York, 12244- 0001 or at www.osc.state.ny.us/retire .