Month: February 2024

What’s Brewing with AI?

Artificial Intelligence – a.k.a. AI – has taken the world by storm, especially with certain apps making their way to the mainstream in the last year. World leaders are trying to figure out how to govern it. Large companies are looking for ways to maximize it. Discussions about the impact on jobs and industries – from law and accounting to teaching, medicine, marketing, and everything in between – continue. This leads to the question: What role will AI play in the brewing industry?

While images of robots serving customers may come to mind, most of the potential uses aren’t that obvious. As we began researching the topic, numerous technical terms kept coming up, prompting us to take a step back and start with some basics. AI is technology that performs cognitive functions typically associated with human intelligence. It can incorporate visual perception, speech recognition, learning, language processing, decision-making and more, and bases its output on an abundance of data. All of this comes together in smart machines and computer programs.

When it comes to brewing, I came across many stories about brewers at locations across the globe playing with AI to create new recipes; brainstorm and tweak existing recipes; and explore which brews are most likely to be a hit based on taste and consumer data. Some brewers are extending their venture into AI beyond recipes and using it for package and bottle designs, labeling, press releases, social media content, and marketing.

In numerous cases, brewers are engaging customers in the novelty of the potential role of AI in brewing by holding contests where customers get to vote on whether they like a non-AI or an AI-generated brew better; where they can give product feedback, and more. No doubt the trend of exploring the role of AI in creating brews and marketing to engage customers in the process will continue to grow.

Beyond recipes, there are AI solutions that are helping brewers with multiple locations adjust for variables like water or altitude so the final brew tastes the same no matter where it is produced. There’s a robot in Australia producing consistent foam with each pour. Systems and sensors are being used to promote quality; identify leaks and reduce waste; monitor variables that can impact quality (i.e., temperature of a shipping container and transit time); and conduct predictive maintenance to keep production moving.

Predictive analytics powered by AI help analyze data about market trends, consumer preferences, buying, and more to help brewers make informed decisions about everything from product development and pricing to marketing and sales.

When it comes to supply chain management, AI algorithms are being used to forecast demand, improve inventory management and production schedules, and cut costs. There are even AI-based tools that use data about production costs, competitors, consumer demand, and buying to create pricing strategies that can be adjusted in real-time to promote sales.

Whether you’re looking to shorten development time, hasten go-to-market time, reduce costs, increase output, promote compliance, standardize quality, boost sustainability, or strengthen marketing and sales, based on what other brewers are doing, it appears there’s a role for AI. Still, there is another side to the story…I’ll use my mom’s banana bread to illustrate the point I want to make.

Personally, if I had to choose a banana bread baked by my mother or one from a robot, I’d choose my mom’s every time. There’s just something about it being made by mom, using my grandmother’s recipe, that makes it taste better than any other banana bread out there. I don’t think this will ever change and I hope this isn’t completely lost as the role of AI in our daily lives evolves.

If you need time to learn more about AI in brewing, you can count on RBT CPAs for your accounting, tax, audit, and advisory needs. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 50 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Preparing for a Financial Audit: A Guide for Public Housing Authorities

Financial audits are a crucial part of any organization’s financial health, and public housing authorities are no exception. Financial audits are conducted under Government Auditing Standards, issued by Comptroller General of the United States. A financial audit provides an independent assessment of an organization’s financial statements, which in turn ensures transparency, accountability, and a strong foundation for future planning. However, the process can be daunting without proper preparation. Here’s a guide on how public housing authorities can prepare for the compliance aspect of a single audit.

A good place to start is with the audit requirements. These requirements may be outlined in grant agreements, regulatory requirements, or the U.S Department of Housing and Urban Development (HUD) guidelines. Familiarize yourself with these requirements to ensure that your financial statements align with them. It is also beneficial to keep abreast of any changes in audit requirements to avoid non-compliance.

Next, conduct an internal review of your financial records. This process involves examining your financial transactions, supporting documents, and accounting practices. It’s crucial to ensure all transactions are recorded accurately and all supporting documents, such as receipts, invoices, and bank statements, are organized and readily available. Moreover, review your internal controls to ensure they are robust and effective in preventing and detecting fraud or errors.

Ensure that your accounting systems and procedures are up to standard. This includes maintaining accurate and complete records, implementing segregation of duties, and ensuring the reconciliation of accounts. Regularly update your accounting software to the latest version to benefit from improved features and enhanced security.

Preparing the Schedule of Expenditures of Federal Awards (SEFA) is also a vital part of audit preparation. The SEFA is a comprehensive list of all federal awards expended during the fiscal year. It should be prepared in accordance with Government or yellow book auditing standards, as well as the Compliance Supplement which is updated annually. Be sure to include all necessary information such as the grantor’s name, the Assistance Listing Number (formerly Catalog of Federal Domestic Assistance (CFDA) number), and the amount of expenditures.

Communication is key in audit preparation. Regular communication with the auditor will ensure a smoother process. Provide all necessary information and clarify any changes in your financial system or operations. Keep your staff informed about the audit process, what is expected of them, and the timeline. This will help alleviate any potential anxiety and promote cooperation during the audit.

Finally, do not forget to review your previous audit findings. If there were any deficiencies or material weaknesses identified in the previous audit, ensure that corrective actions have been taken. This will not only reduce the likelihood of repeated findings but also demonstrate your commitment to improving your financial management practices.

A financial audit can be a daunting task, but with proper preparation, it can be a constructive process that strengthens your organization’s financial health. Remember, audits are not just about compliance. They are a tool for improving your financial practices, enhancing transparency, and ensuring the effective use of public resources.

If you have any questions or need any audit, accounting, tax, or advisory support, please know RBT CPAs is here for you. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 50 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Don’t Leave Your Legacy to Chance: Develop and Update Your Estate Plan Today

Jack and Jill decided it was time to get an estate plan in place. They met with their advisor and started a gifting plan to their children, grandchildren, and great-grandchildren. Unfortunately, both Jack and Jill passed away before the plan was complete. Had they started the gifting plan just a few years earlier they could have saved estate taxes and an additional $1 million could have gone to their beneficiaries rather than to taxes. Now it’s too late.

Alexis and Skylar had been together for 30 years, built a successful manufacturing business, and had plans to travel the world when they retired. That changed when Alexis suddenly passed away at age 54. Without an estate plan and a marriage license, Alexis’ parents were named executors of her estate – not Skylar.

Trevor spent his life building a successful business with 60 employees and total annual revenue of $40 million. He never married or had children. While a niece joined his business after college, she didn’t seem to have the skillset to keep it going long-term. So, he just kept working thinking he had time to figure it all out. At 68, he passed away. A short time later, his business shut down. Now, years later, his estate is still tied up in court, lawyers’ fees are immense, and his siblings, nieces, and nephews are fighting about who gets what.

It’s never too early to put an estate plan in place, but there is a time when it’s too late. Failing to create, review, and update a plan at least once a year can have a significant impact on the people you want to take care of, the value of your estate, your tax obligations, and the legacy you leave behind. With major changes to Federal laws scheduled to take effect in just over 22 months plus the impact of New York laws, it’s even more important that you make time to create and update your estate plan now.

Estate planning is a comprehensive process to manage and protect assets during your lifetime, define how your personal affairs should be managed while you are alive, and confirm what will happen upon your death. It can include setting up trusts, arranging for powers of attorney, establishing healthcare directives, planning for potential long-term care needs, tax planning, and more.

When it comes to your business, an estate plan can foster a smooth transition of leadership and operations by including a succession plan. Estate planning allows business owners to decide who inherits their business, whether it’s family, partners, employees, or a trust. This can help prevent disputes among heirs and ensure that the business endures.

Plus, estate planning helps maximize the value of your assets that go to your beneficiaries, while minimizing tax obligations. By setting up trusts, gifting shares, or establishing buy-sell agreements, you can significantly reduce the tax burden on your heirs. This can be crucial in ensuring that your business remains viable and doesn’t need to be sold to cover taxes. What’s more, estate planning can protect a business from creditors. By strategically structuring business assets and personal assets, an estate plan can shield the business from being used to settle personal debts.

In essence, estate planning is not an option, but a necessity for every business owner. Business owners should consider estate planning as an integral part of their business strategy and seek expert advice to ensure their plans are comprehensive and legally sound.

RBT CPAs professionals in our Estate, Trust and Gift Practice can help you create and update an estate plan that gives you peace of mind in knowing you, your loved ones, and your business will be taken care of according to your wishes during your lifetime and after.

While RBT is not a law firm, we can help you create a succession plan, refer you to an attorney who can create related legal documents (or work with your attorney if you already have one), review legal documents to ensure they accurately reflect your wishes, and review and update your plan annually so they continue to reflect your wishes and are adapted due to any tax law changes.

If you’re interested in learning more, getting started, or reviewing plans you may already have in place, please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Estate & Succession Planning: A Necessity for Family-Owned Restaurants

Running a family-owned restaurant is often a labor of love, with each generation imparting their unique flavor to the business. However, to ensure that your legacy – and the impact it can have on loved ones and assets (including your restaurant) – plays out according to your wishes, it is crucial to have a comprehensive estate and succession plan in place.

Estate planning helps you define how your personal affairs and assets should be managed while you are alive and confirms what will happen upon your death. When it comes to your business, an estate plan can foster a smooth transition of leadership and operations by including a succession plan.

What’s more, estate planning helps maximize the value of your assets that go to your beneficiaries, while minimizing tax obligations. As it relates to your restaurant, it can be used to establish buy-sell agreements, significantly reduce tax burdens on heirs, protect it from creditors, and shield it from being used to settle taxes or personal debts.

It’s never too early to put a plan in place, but there is a time when it’s too late. Failing to create, review, and update a plan at least once a year can have a significant impact on the people you want to take care of, the value of your estate, your tax obligations, and the legacy you leave behind. With major changes to Federal laws scheduled to take effect in just over 22 months plus the impact of New York laws, it’s even more important that you make the time to create and update your estate and succession plan now.

The importance of estate and succession planning cannot be overstated. Without a clear successor, especially when there’s a sudden occurrence resulting in disability or death, a restaurant may face significant upheaval and operational challenges. This has the potential to lead to a restaurant’s closure or sale. Family discord may arise due to different visions for the restaurant’s operation. Creditors and vendors may look for payment in full.

There are also tax implications. Without an estate plan, for instance, the restaurant may be subject to hefty estate taxes that could impact the financial health of the business. A well-crafted plan can optimize tax benefits and protect the restaurant’s assets.

Just as you wouldn’t want state law to dictate how to take care of your family and business today, you shouldn’t want it to dictate what happens to your business (and family) upon your disability or death. There’s one way to ensure that doesn’t happen: develop an estate and succession plan today and make sure it’s always up to date by reviewing it annually.

RBT CPAs professionals in our Estate, Trust and Gift Practice can help you create and update an estate and succession plan that gives you peace of mind in knowing you, your loved ones, and your business will be taken care of according to your wishes during your lifetime and after. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Update on Safeguarding Tomorrow Revolving Loan Fund to Help Communities Adapt to Climate Change

Since 2021, we’ve been hearing about Safeguarding Tomorrow Revolving Loan Fund (RLF), a program designed to help communities address vulnerabilities to natural hazards and disasters attributed to climate change. Eligible communities in New York may benefit from the program starting later this year.

From February to April of 2023, states, eligible federally recognized tribes, territories, and the District of Columbia were invited to apply for the program. In September 2023, FEMA announced eight states will receive grants in the amount of $50 million combined to help communities address vulnerabilities to natural hazards and disasters. New York is slated to receive just over $6.2 million (it had requested just over $15 million).

As explained on the FEMA website, “Local governments may use capitalization grant funding through low-interest loans to make structures more resilient to natural hazards.” The website also notes funds can be applied to satisfy cost-share requirements for FEMA hazard mitigation (HM) assistance grants and will serve as a sustainable financing source because, as loans are paid back, funding can finance additional projects. The program promotes funding to disadvantaged communities, which should be slated to receive at least 40% of revolving fund loans.

New York’s Intended Use Plan, developed as part of its application for the Safeguarding Tomorrow RLF, provides more details and insights into how the program may work in our state. Here are a few highlights:

…“The state will use these capitalization grants to establish a revolving loan fund from which direct loans will be provided to local governments for projects and activities that mitigate the impacts of drought, intense heat, severe storms (including hurricanes, tornadoes, windstorms, cyclones, and severe winter storms), wildfires, floods, earthquakes, and other natural hazards.”

…“DHSES (a.k.a. NY Department of Homeland Security and Emergency Services) will administer the HM RLF to support various hazard mitigation activities that address natural hazards such as severe storms and wind events, and flooding. Flooding includes highwater levels, inland flooding, and storm surges. Loan applications will also be evaluated against the NY State Hazard Mitigation Plan.”

….“Standard loans will be issued with an interest rate of 1.0 percent. Loan term will be 20 year or less following completion of the funded project. Loans for low-income geographic areas or underserved communities will be issued with an interest rate of 1.0 percent. Loan term will be 30 year or less following completion of the funded project.”

…“The loan application and instructions will be posted to the DHSES website and will follow a similar process to an existing revolving loan program that DHSES currently administers.”

…“DHSES anticipates disbursing funds within 9 months of receiving funding from FEMA by working closely with all applicants.” So, we’ll likely be hearing something by mid-year.

There’s more. At year-end 2023, the 2024 Notice of Funding Opportunity for Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund (RLF) was announced, tripling the total amount of grants available to $150 million. The application period is open and will close on April 30, and New York is eligible to apply, which is likely according to the 2023 IUP.

For now, your municipality may want to keep all of this in mind as it develops local plans to address infrastructure vulnerabilities due to severe weather events and climate change. We will keep an eye out for more information for you.

In the meantime, if you need any accounting, tax, audit, or advisory support, please know RBT CPAs is here for you. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 50 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Our Take on What’s in Store for Veterinary Practices in 2024

The veterinary industry has certainly seen its share of ups and downs over the last few years in terms of business valuations, acquisitions, consolidations, sales, and general performance. Now that businesses are getting more accustomed to operating in an environment marked by high inflation (that’s coming down) and high interest rates (that will likely come down), and the threat of a recession is waning, we predict 2024 will foster greater stability in the veterinary marketplace.

Starting with acquisitions and consolidations, following last year’s lull and the prior two years’ bubble, we anticipate there will be a gradual uptick in 2024. With so many of the larger veterinary practices and hospitals already targeted for acquisition and consolidation, we would expect to see interested parties begin exploring smaller practices, with two or more doctors and strong profitability. While valuations may be up slightly from last year, returning to 12 to 18 times EBITDA common in 2021 and 2022 is not likely.

There’s also indication that deals will involve less cash up front, be more complex, and cover longer time spans. Considering continuing labor challenges, it wouldn’t be surprising for acquirers and consolidators to look for current doctors to sign on to longer employment contracts than in the past.

As for actual business performance, the environment remains challenging. Pet owners are tightening their belts to address the impact of inflation and interest rates on their disposable income. A number of sources are citing decreases in veterinary visits and longer time lapses between visits. This will likely continue in 2024.

To offset declines, 2024 will likely see an increased interest in practices expanding their value proposition, by adding or expanding services and high revenue sources (to include things like dental) and exploring technology upgrades. No doubt, promoting operating efficiencies by eliminating non-value-added work with technology and keeping a close watch on inventory and material costs to protect profit margins will remain priorities for all. The upside of all of this effort is that these actions – and their results – make a practice more attractive to buyers and investors.

At the same time, growing interest in new delivery channels like telemedicine and new business models like mobile operations will continue in 2024, although we wouldn’t expect it to be at a pace that causes any major industry disruption…at least not this year.

My observations are general and, in truth, they can turn on a dime (although I don’t think that will happen), especially considering the many factors that can impact the economy and business today.

While understanding the big picture landscape is important to inform goals and business decisions, focusing on your practice is where the real opportunity can be found. Whether you’re looking to develop a business strategy; bring a CFO-like focus to your operations; or need accounting, tax, audit or other business advisory services, please don’t hesitate to give us a call. We are RBT CPAs. For over 50 years, businesses across the Hudson Valley, New York and beyond have partnered with us because they know we believe we succeed when we help them succeed, and we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

2024 Construction Outlook: Proceed with Caution

While there are several reasons for U.S. construction businesses to be cautiously optimistic about 2024, there are also a number of reasons to simply be cautious.

In the U.S. overall, there’s an expectation for some growth (but not as strong as last year), with a hope that inflation and interest rates will decrease. Wages are up and unemployment is hovering around 3.5% to 4%. Lending is tightening and consumer spending is slowing down. The likelihood of a recession is anyone’s guess, although it seems less likely than it was a year ago. The situation is fragile, for lack of a better word, considering escalating geopolitical tensions and the fact that we’re in a presidential election year.

It feels like we’re playing Jenga and while we’re doing a good job keeping the business environment balanced, all it will take is one false move and everything can tumble. Moving slow and steady is key.

When it comes to construction, the Associated General Contractors (AGC) and Sage annual Construction Outlook Survey Results released last month provide valuable insights to help guide your business strategy for the year ahead.

As I reviewed the results, I didn’t see any big surprises, and I think the assessment of opportunities and challenges are right on target, based on what we’re hearing from clients and seeing in the industry overall.

Results show 64% of respondents are worried about rising interest rates and financing costs; 62% are worried about a recession or economic slowdown. Costs in general are among the top concerns for 2024, with both labor costs and material costs on the rise. Rising costs, interest rates, and reduced funding resulted in over 70% of respondents experiencing project postponements or cancellations in 2023.

When it comes to labor, 69% of respondents plan on adding staff and 77% are having challenges filling open positions. Last year, many raised pay, enhanced benefits and contributions to benefit costs, and added or increased incentives. Considering rising wages across industries, construction companies are likely looking at having to do even more to attract and retain talent, while addressing growing concerns about safety due to workforce inexperience.

While a growing percentage of respondents are investing in technology like drones, AI, and modular construction, the majority still aren’t on board. Does this mean there are still a lot of opportunities for construction firms to address staffing challenges by using technology to work more efficiently and effectively?

A higher percentage of respondents, but still not a majority, are also continuing to invest in software for accounting, project management, document management, and estimates. Again, this may open opportunities to eliminate non-value-added activities while operating more effectively.

I do appreciate that survey results are also broken down by region and state, as it does highlight differences by geography. For example, when calculating the net percentage of respondents expecting the value of warehouse projects to be higher or lower, results show an anticipated 10% net increase nationally; an anticipated 10% net decrease in the Northeast; and a 29% net increase in New York.

Some other differences to note…based on survey results, NY staffing challenges appear to be slightly lower than the national average. While both national and New York results show the top response to supply-chain issues is to accelerate purchases after winning contracts, nationally the second most popular response is to turn to alternative suppliers but in New York respondents are more likely to have specified alternative materials or products.

When it comes to project postponements or cancellations, New York respondents appear to be facing more challenges than most:

Nationally, 34% of respondents indicated no projects scheduled to start in 2023 or 2024 were postponed or canceled; in New York, the result drops to 24%.
Nationally, 37% of respondents indicated projects postponed in 2023 were rescheduled; in New York that drops to 24%.
Nationally, 36% of respondents indicated projects that were postponed or cancelled in 2023 were not rescheduled; that jumps to 45% of respondents in New York.

Interestingly, nationally, a greater percentage of respondents indicated owners postponed/cancelled projects slated to start in 2024 than in New York. If you’re a glass-half-full person, you could take this as things may be looking up in New York…maybe.

As 2024 unfolds, please remember the professionals at RBT CPAs are here for you. Please don’t hesitate to give us a call and find out why businesses across the Hudson Valley and New York have entrusted us with their accounting, tax, audit, and business advisory needs for over 50 years. Hint: We’re Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Is Your Business Required to Collect and Pay Sales Taxes in Other States?

One of the more challenging tax concepts business owners should understand, plan for, and address as part of their overall tax strategy is called nexus.

In simplest terms, nexus defines when you must register to do business and pay sales and use taxes in a particular state (and, in some cases, local jurisdictions). However, there’s nothing simple about it.

In general, if you have a sufficient physical presence in a state – like an office, store, or warehouse – nexus applies. If you have employees working out of another state – even remote workers, agents, or an affiliate – nexus is triggered. And if your business’ economic activity in a state – online or offline – meet certain thresholds, nexus comes into play. These are the easiest triggers to understand – there are others.

What’s more, with the growth of online marketplaces and remote sales, legislation regarding nexus has evolved. As a result, going beyond merely having a physical presence, businesses are required to pay sales and use taxes when they have a significant connection to a state. Each state (and in certain cases, jurisdictions like counties or municipalities) set their own thresholds for triggering “economic nexus.” Thresholds are usually based on revenue, sales volume, and/or number of transactions.

For example, Connecticut adopted its economic nexus threshold in 2018 and updated it in 2019. Today, its threshold is $100,000 in gross sales (including online sales) and 200 or more transactions in the 12 months preceding December 30.

On the other hand, Mississippi adopted its economic nexus threshold in 2023. The threshold is $100,000 in taxable sales within the 12-month period ending on the last day of the most recently completed calendar quarter.

To complicate matters, state thresholds can be adjusted and change. So even if your business didn’t trigger economic nexus a year ago in a certain state that may not be the case today.

The consequences of not complying with nexus requirements can be severe. States can impose penalties, interest, and even civil or criminal charges for non-compliance. Moreover, states can audit businesses and demand payment for uncollected sales tax retroactively for multiple years covered under a statute of limitations. The unexpected financial impact could devastate a business.

To simplify a complex topic, we’ve focused largely on nexus as it relates to sales taxes. However, it’s important to know that when nexus exists it can expand a company’s tax obligations to include state payroll taxes, excise taxes, and franchise taxes (a levy for doing business in a state), as well as additional permit and filing requirements. That’s another discussion for another article.

For now, focus on protecting yourself and your business from the legal and financial ramifications of non-compliance with nexus by consulting with a professional, experienced tax advisor – like the ones you will find at RBT CPAs. Please don’t hesitate to give us a call and learn firsthand why businesses across the Hudson Valley and New York have entrusted us with their accounting, tax, audit, and business advisory needs for over 50 years. RBT and your business can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

LM-2/3/4 Forms: What They Are and Why They Matter

Each year, unions covered under the Labor-Management Reporting and Disclosure Act, Civil Service Reform Act or Foreign Service Act must file an annual financial report – a.k.a. Form LM-2, LM-3, or LM-4 – to maintain transparency and accountability. Following is an overview of what these annual financial reports are and why they matter.

In essence, Forms LM-2/3/4 are financial statements with varying levels of detail. Form LM-2 is the most comprehensive, encompassing a wide range of financial information, including receipts and disbursements, assets and liabilities, direct and indirect disbursements to officers and employees, and loans receivable and payable. LM-2 forms also provide information about membership numbers, political spending, grants, and more.

The forms promote financial transparency, empower stakeholders to make decisions, impact a union’s reputation, and foster accountability. They serve as a check against potential financial mismanagement. Inaccurate or incomplete forms can lead to legal issues (including penalties and potential legal actions); hurt trust in leadership; and threaten a union’s credibility, reach, and impact.

A union’s total annual receipts determine which form is required. Organizations with:

$250,000 or more in annual receipts, file Form LM-2.
At least $10,000 but less than $250,000 in annual receipts, file Form LM-3.
Less than $10,000 in annual receipts, file Form LM-4.

The deadline for the annual filing is within 90 days of the end of the organization’s fiscal year. The form must be filed electronically using the Office of Labor-Management Standards (OLMS) Electronic Forms System (EFS). Before filing, an organization must register in the system.

A union’s president and treasurer or corresponding principal officers are personally responsible for the annual financial report’s accuracy and filing. Failure to file a report or keep required records for at least five years or knowingly misrepresenting or failing to disclose a material fact can result in significant financial fines, imprisonment, or both.

For information on how to register for an EFS User ID and Password; obtain a union PIN; and obtain, sign and submit an LM form, click here.
For detailed instructions for completing an LM form, visit the OLMS website.
For compliance tips and information on how to avoid common reporting errors, click here.

One of the best ways to help promote LM-2/3/4 accuracy and compliance is to work with an experienced accounting professional, like the ones you’ll find at RBT CPAs. We’ve been operating in the Hudson Valley and beyond for over 50 years and we believe we succeed when we help our clients succeed. Interested in learning more about our accounting, tax, audit, and advisory services? Give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

2024-2025 NYS Regents State Aid Proposal: The Top 10 Line Items for New Funding

In December, the New York State Board of Regents unveiled its proposed budget and legislative priorities for 2024-2025. Priorities focus on supporting lifelong learning, academic success, and improved outcomes; advancing equity, excellence, and access; and rebuilding the Department’s ability to support districts, teachers, students, and all New Yorkers. When it comes to new funding, here are the ten largest line items noted in the 2024-2025 Regents State Aid Proposal: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.regents.nysed.gov/sites/regents/files/1223bra4revised12.11.pdf

#10. $4.3 million for agency-wide infrastructure

With a goal of rebuilding the Department’s capacity to provide world-class customer service and improve supports for all stakeholders, proposed funding is for new staff (primarily in IT, but also HR and Finance) and the purchase of external technology and services to update basic technical infrastructure, support system security, replace outdated systems, support licensing, and more.

#9. $4.5 million to support English language learner assessments

This involves updating translations of all required assessments, parent materials, and public information; providing computer-based delivery of NYS English as a Second Language Achievement Tests and interim assessments; and better supporting students with disabilities who are also English Language Learners.

#8. $11.1 million for higher education opportunity programs

This allows more students to benefit from opportunity programs like the Higher Education Opportunity Program (HEOP), Science and Technology Entry Program (STEP), Collegiate Science and Technology Entry Program (CSTEP), and Liberty Partnerships Programs (LPP). These programs make higher education possible for students who would otherwise not be able to attend due to economic and education circumstances; they also help prevent dropouts.

#7. $15.5 million for a Special Education Data System

Funding is for a project team and capital construction for an Office of Special Education new real-time data system to help the Department, local school districts, counties, and parents identify New York programs that can support the needs of students with disabilities. Over the long-term, a comprehensive and fully integrated system will help support and evaluate administrative and programmatic goals for New York’s special education system.

#6. $17 million for cultural education revenue stabilization

The purpose is to stabilize operational funding for the State Museum, State Library, State Archives, and Office of Public Broadcasting and Educational Television. Funding varies greatly year-to-year due to its dependence on macroeconomic conditions (including inflation) and a revenue stream based on a fee that has not changed in more than 20 years.

#5. $19 million to support special education provider residential programs

Funding will be used to help special education providers appropriately fund operations and improve the availability of residential placements for school-aged students. Funding would also make providers whole when tuition cannot be billed due to an adult (up to age 22) occupying a student placement because no suitable alternative is available.

#4. $20 million for juvenile justice hybrid programming

Funding is for the design and implementation of a statewide hybrid high school in collaboration with the Office of Children and Family Services for students in juvenile justice settings. Funding would cover the cost of staff (including certified teachers) and the costs of providing coursework online.

#3. $45 million for public library construction assistance

The State Aid for Library Construction program stretches local investment and helps ensure libraries serving economically disadvantaged communities can access capital funding for critical improvements.

#2. $70.5 million to provide a Free and Appropriate Education (FAPE) to Students with Disabilities until age 22

Funding will help meet legal requirements to provide special education and related services to resident students with disabilities until the day before a student’s 22nd birthday, unless they have already obtained a high school diploma. (Currently, state law only provides funding through the school year that a student turns 21.)

#1. $174 million for maintenance and/or construction of education buildings

Funds will be used to maintain and update buildings where staff work, like the State Education Building, and for maintenance or construction at five state-owned schools (the NYS School for the Blind, the NYS School for the Deaf, the Onondaga Nation School, the Tuscarora Nation School, and the St. Regis Mohawk Nation School). Specifically, $90 million will go to a new building at the St. Regis Mohawk School; however, this may be partially offset by funding provided for extensive maintenance work last year.

As for state aid, the proposal calls for an additional $1.6 billion for the 2024-25 school year to ensure an increase in funding for the state’s neediest districts ($926.8 million in Foundation Aid); to review and modernize the Foundation Aid formula ($343.4 Million); and to reimburse districts for other aid programs as per current law ($359.4 million), while providing relief for districts with sudden enrollment increases; aid for students with disabilities between ages 21 and 22; enhanced BOCES Aid and Special Services Aid for ninth grade; and streamlining of prekindergarten funding.

This discussion wouldn’t be complete if we didn’t take a moment to mention Governor Hochul’s proposed budget for 2024-2025. While the proposed budget would increase school funding by record amounts, proposed Foundation Aid falls short of what the Regents proposed and certain changes could have a significant impact on district budgets across the state.

As reported on Westchester News 12, “One-third of school districts in the Lower Hudson Valley region will see less state funding for education if the current 2025 fiscal year state budget proposal remains as is. Beacon, Greenwood Lake, Garrison, Pearl River, and Mount Vernon are among the 30 school districts in Dutchess, Orange, Putnam, Rockland, and Westchester counties projected to get less from the state next year compared to this year.”

As we await finalization (the NYS budget is supposed to be approved April 1), please know that if you have any accounting, tax, audit, or advisory needs, RBT CPAs is here to support you. We’ve been serving school districts and higher education institutions in the Hudson Valley and beyond for over 50 years. Known for delivering an exceptional customer experience, as well as the upholding the highest levels of professionalism and ethics, the RBT team believes we succeed when we help you succeed. If you’re interested in learning more, give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.