Institutional Federal Compliance Report 2021

Sensitivity of total OPEB liability to changes in health care cost trend rates. The following presents the total OPEB liability of CUNY as of June 30, 2018 using the current year’s healthcare cost trend rates, as well as what the total OPEB liability would be if calculated using rates that are 1 percentage point higher and 1 percentage point lower than the current year’s rate (amounts in millions): 124 • Notes to Basic Financial Statements _________________________________________________________________________ 1% Current 1% Decrease Trend Rates Increase Total OPEB Liability as of June 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,348 $ 1,667 $ 2,128

CUNY recognized $161 million in expenses related to OPEB at June 30, 2018. As of June 30, 2018, CUNY reported deferred outflows and deferred

inflows of resources related to OPEB from the following sources (amounts in millions):

Deferred Outflows of Resources

Deferred Inflows of Resources

Difference between expected and actual experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Change in assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

—00000 $

4

36

—00000

36 $

4

The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in future OPEB expense for the fiscal years ending June 30 as follows (amounts in millions):

CUNY Research Foundation, a blended compo- nent unit of the CUNY Senior Colleges, provides postemployment benefits including salary continuance, to certain employees. The cost of these benefits is accrued over the employees’ years of service. CUNY Research Foundation also provides certain health care benefits to retired employees (including eligible depen- dents) who have a combination of age and years of service equal to 70 with a minimum age of 55 and at least 10 years of continuous service. CUNY Research Foundation accounts for postretirement benefits pro- vided to retirees on an accrual basis during the period of their employment. As of June 30, 2018, CUNY Research Foundation’s postretirement plan consisted of (amounts in millions):

Fiscal Year 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

4 4 4 4 4

12 32

Benefit obligations . . . . . . . . . . . . . . . . . . . . $ Fair value of plan assets . . . . . . . . . . . . . . . . Funding status . . . . . . . . . . . . . . . . . . . . $

(114) 119

5

Note 14 Discretely Presented Component Units—Public Benefit Corporations Discretely presented component units—public benefit corporations (Corporations), as defined in Note 1, are legally separate entities that are not operating depart- ments of the State. The Corporations are managed independently, outside the appropriated budget process, and their powers generally are vested in a governing board. Corporations are established for the benefit of the State’s citizenry for a variety of purposes such as economic development, financing, and public transportation. They are not subject to State constitu- tional restrictions on the incurrence of debt, which apply to the State itself, and may issue bonds and notes within legislatively authorized amounts. and other expenses. Financial assistance in the form of appropriated loans, contributed capital or operating subsidies for certain Corporations, principally the Metropolitan Transportation Authority, the Roswell Park Cancer Institute, and the Urban Development Corporation, was provided in the fiscal year ended March 31, 2019 and such assistance is expected to be required in future years. Accordingly, the fiscal con- dition of the State is related to the fiscal stability of the Corporations.

Thirty-six of the 43 entities listed below are dis- cretely presented component units of the State because the Governor, with the approval of the State Senate, appoints the voting majority of the boards of directors of these corporations, and the State is able to impose its will on the corporations and/or has a financial benefit or burden relationship with the corporations.

Corporations are generally supported by revenues derived from their activities, although the State has provided financial assistance, in some cases of a recur- ring nature, to certain Corporations for operating