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XVI.3.F
Public Benefit Corporations


Policy Reference:

GASB Codification Section 2100 – Defining the Financial Reporting Entity

Process and Document Preparation:

The following is a discussion of each public benefit corporation, public authority, not-for-profit corporation, and similar entities (collectively called public benefit corporations) considered for inclusion within the New York State reporting entity. All public benefit corporations (PBC's) determined, in accordance with provisions of GASB Codification Section 2100, to be included within the entity will be reported upon in the financial statements under the caption, "Public Benefit Corporations," except where otherwise noted.

PUBLIC BENEFIT CORPORATIONS INCLUDED WITHIN THE NEW YORK STATE REPORTING ENTITY


Aggregate Trust Fund

The Aggregate Trust Fund was created under the New York Workers' Compensation Law and is the disbursing agency for related death and certain permanent disability claims exclusive of claims applicable to the State Insurance Fund. The State Insurance Fund, which issues audited financial statements for the Fund, administers the Fund.

Agriculture and NYS Horsebreeding Development Fund

The Agriculture and NYS Horsebreeding Development Fund promotes agriculture in general, developing the breeding of horses and the encouraging and funding of equine research in New York State. The Fund is governed by a board of trustees, which includes the Chairman of the NYS Gaming Commission, the NYS Commissioner of Agriculture and Markets and three members appointed by the Governor.

Albany Convention Center Authority

The Albany Convention Center Authority was created in 2004 as a public benefit corporation under the NYS Public Authorities Act to meet an immediate need to institute a comprehensive, coordinated program of convention activities in the city of Albany. Three members of the nine member board are appointed by the Governor.

Battery Park City Authority (BPCA)

The BPCA was created in 1968 to manage the commercial and residential development of 92 acres of land located at the southwest end of Manhattan Island. The Authority issues bonds and notes to the public in order to obtain the resources necessary to complete its projects, which include low-income housing and various commercial properties. A seven-member Board appointed by the Governor administers the Authority and all BPCA debt issuances are subject to review by the NYS Public Authority Control Board (PACB). Upon termination of the Authority, all rights and properties will pass to the State.

Capital District Transportation Authority (CDTA)

The CDTA was established to provide transportation and other related services within the Capital District Transportation area. The Governor appoints all members of the Board of Directors. A majority of the Authority's revenues are derived from user charges, and the State Commissioner of Transportation must approve certain fare modifications.

Central New York Regional Transportation Authority (CNYRTA)

The CNYRTA was established to provide transportation and other related services within the Central New York Transportation District. The Governor, with the advice and consent of the Senate, appoints all members of the Board of Directors.

City University of New York (CUNY) - Senior College Supporting Organizations

The discretely-presented component units included in the CUNY Senior Colleges’ statements are: the Senior Colleges’ campus-related foundations, auxiliary services corporations, student association organizations, child care centers and research and arts related organizations. All these entities are legally separate not-for-profit organizations. CUNY Senior Colleges’ Foundations support academic and general needs of the colleges and their students. Their activities are primarily funded through donor contributions, special fund-raising events, and earnings on investments. The campus-based auxiliary services corporations, student association organizations and child care centers operate, manage and promote educationally related services for the benefit of their campus communities.

The financial data for these organizations comes from the combined totals of the discretely presented component units reported in the CUNY Senior Colleges financial statements in accordance with GASB. These combined totals are derived from each entity’s individual June 30 fiscal year-end financial statements.

Dormitory Authority (DA) of the State of New York

The Dormitory Authority was established to finance and construct dormitories for New York State teachers’ colleges, the predecessor to the State University System. Since its inception, its purpose was expanded to include independent higher education institutions, health care facilities, mental hygiene facilities, court facilities, and many non-profit public-purpose organizations. It has also become the largest issuer of State-supported debt, having issued over 50 percent of all such debt currently outstanding. The DA is administered by an 11-member Board of Directors consisting of five gubernatorial appointees, one member appointed by the Temporary President of the State Senate, one member appointed by the Speaker of the State Assembly, one member appointed by the State Comptroller, the Commissioner of Education, the Commissioner of Health, and the Director of the Budget, with the latter two serving ex-officio.

The DA succeeded to the powers and duties of the Medical Care Facilities Finance Agency (MCFFA) and the Facilities Development Corporation (FDC) in 1995. The MCFFA was responsible for financing health care facilities and the FDC was responsible for building mental hygiene facilities. The DA is one of the nations’ leading issuer of municipal bonds. The Public Authorities Control Board must approve the DA’s financing and construction projects.

Health Research, Inc.

Health Research, Inc. is a not-for-profit corporation chartered under the laws of New York State. The Corporation primarily administers private and governmental gifts, grants, and donations in keeping with research, prevention, and treatment purposes of the New York State Department of Health.

Homeless Housing and Assistance Corporation (HHAC)

The HHAC was created in 1990 as a subsidiary corporation of the State Department of Social Services. HHAC has the powers granted by Section 45-c of the Private Housing Finance Law and by Article 2-A of the Social Services Law.

Housing Trust Fund Corporation (HTFC)

The HTFC was created in 1985 by amendment to the Private Housing Finance Law as an unconsolidated subsidiary corporation of the New York State Housing Finance Agency (HFA). HFA is authorized to transfer various properties to HTFC in order to carry out a low-income housing trust fund program. The membership of HTFC consists of the Commissioner of Housing and Community Renewal, the Chairman of HFA, and one additional member appointed by the commissioner. The corporation possesses its own staff apart from HFA.

Hudson River-Black River Regulating District

The Hudson River-Black River Regulating District is a public benefit corporation created to construct, maintain, and operate reservoirs, and regulate the flow of streams in the Hudson River-Black River area. A seven-member Board, each member of which is appointed by the Governor, administers the Corporation. In addition, the Corporation consults with the Department of Environmental Conservation.

Long Island Power Authority (LIPA)

LIPA was created in 1986 to resolve the controversy over the Shoreham Nuclear Power Plant (Shoreham) and to seek lower utility rates on Long Island. LIPA completed decommissioning of Shoreham in 1994. In May of 1998, LIPA acquired Long Island Lighting Company’s (LILCO) transmission and distribution system, its interest in the Nine Mile Point 2 plant and its Shoreham regulatory asset, and became responsible for serving electric customers in the LIPA service area. LIPA relies on an independent contractor to provide electrical distribution services to its customers. Chapter 173 of the Laws of 2013 established the Utility Debt Securitization Authority (UDSA) for the sole purpose of retiring certain outstanding indebtedness of LIPA through the issuance of restructuring bonds by UDSA. UDSA is a blended component unit of LIPA. Rate reduction was achieved by refinancing the assumed debts of the former LILCO with lower cost tax-exempt bonds. A nine-member Board of Trustees governs LIPA. The Governor appoints five of the Trustees, two are appointed by the Temporary President of the Senate, and the Assembly Speaker appoints the remaining two.

Metropolitan Transportation Authority (MTA)

The MTA is responsible for the continuance, further development, and improvement of commuter transportation and other related services in the New York Metropolitan Transportation District. This district includes the City of New York and the suburban counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. The Governor, with the advice and consent of the Senate, appoints all members of the Board of Directors. The MTA exercises both direct and oversight control over a number of transportation-related authorities via its status as the governing Authority over their operations. Each of these operating authorities is discussed independently in the sections that follow.

MTA Operating Authorities and Affiliates:


New York City Transit Authority (TA)

The TA, in cooperation with its subsidiary the Manhattan and Bronx Surface Transit Operating Authority, is responsible for the maintenance and operation of the bus and subway lines which comprise the major part of New York City's public transportation system. Revenues are derived from user charges along with contributions from various governmental sources. In addition to Federal, State, and local aid, the TA receives a percentage of the operating surpluses generated by the Triborough Bridge and Tunnel Authority, another MTA-controlled operating authority (see below).

Manhattan and Bronx Surface Transit Operating Authority

Subsidiary of the New York City Transit Authority (see above).


MTA Capital Construction Company

This Company provides oversight for the planning, design, and construction of current and future major MTA system expansion projects.

Staten Island Rapid Transit Operating Authority (SIRTOA)

SIRTOA became a public benefit corporation subsidiary of the MTA in 1970. The Authority is responsible for the operation of a rapid transit railroad system on Staten Island pursuant to a lease and operating agreement with the City of New York.

Long Island Rail Road Company (LIRR)

The LIRR was purchased by the MTA in 1966 and became a public benefit corporation (organized pursuant to New York State Public Authorities Law) in 1980. The Company provides essential commuter and freight services for New York City and Long Island on a user charge basis. The MTA Board determines fare and service levels.

Triborough Bridge and Tunnel Authority (TBTA)

The TBTA was established by the State through consolidation of the New York City Parkway Authority, the New York City Tunnel Authority, and the Triborough Bridge Authority. New York State Public Authorities Law requires the Authority to transfer portions of its operating surpluses to the New York City Transit Authority and the Metropolitan Transportation Authority. In addition, other State entities have utilized the relative fiscal strength of the TBTA to raise necessary capital (i.e., the New York City Convention Center Development Corporation has done so in connection with the building of a new Exposition and Convention Center). As with the other MTA-controlled transportation authorities, the MTA Board maintains both direct and oversight control over the activities of the TBTA.

Metro-North Commuter Railroad Company (MNCRC)
MNCRC became a subsidiary of MTA in September 1982. The company operates the Harlem, Hudson, New Haven, Port Jervis, and Pascack Valley railroad lines.

MTA Bus Company

This company operates certain bus routes in areas previously served by private bus operators pursuant to franchises granted by the City of New York.

First Mutual Transportation Assurance Company (FMTAC)

Formerly known as the Excess Loss Trust Fund (ELF), the FMTAC is an affiliate of the Metropolitan Transportation Authority and certain of its wholly-owned subsidiaries and affiliated agencies. It was established to cover MTA and the participating agencies against losses from catastrophic events. Three trustees currently appointed from MTA, TA, and TBTA govern FMTAC. It was initially funded by a contribution from MTA of $13 million and annual payments by MTA and certain of its operating agencies.

Municipal Bond Bank Agency

The Municipal Bond Bank Agency was established for the purpose of issuing bonds and notes for municipalities which choose to participate at reduced rates and more favorable terms than they could obtain directly.

Natural Heritage Trust

The Natural Heritage Trust was created in 1968 to receive and administer gifts, devises, and bequests of real and personal property donated to the State for conservation, outdoor recreation, and historic preservation purposes. The Trust's Board of Directors is composed of three State officials serving ex-officio, and the administration and control of financial matters is under the Office of Parks, Recreation and Historic Preservation.

N.A. Rockefeller Empire State Plaza Performing Arts Center Corporation (ESPPACC)

The N.A. Rockefeller ESPPACC was established to manage and operate the performing arts center at the Nelson A. Rockefeller Empire State Plaza in Albany. A 17-member Board of Directors, including 13 State appointees, two members appointed by local officials, and one ex-officio members govern it. All employees are New York State Civil Service employees and, upon termination of the Corporation, all rights and properties will pass to and vest with the State.

New York Convention Center Operating Corporation (NYCCOC)

The NYCCOC was established to operate and maintain the New York Exposition and Convention Center upon its completion in 1984. The Board of Directors is composed of 21 members, 15 appointed by the Governor, three by the Senate, and three by the Assembly, with the advice and consent of the Senate.

New York Job Development Authority (JDA)

The JDA was established to provide low interest mortgage loans to local non-profit development corporations which finance business and industrial projects. The Authority finances its operations primarily through the issuance of State-guaranteed, tax-exempt bonds. The Board of Directors is composed of 11 members, four serving ex-officio and seven appointed by the Governor with the advice and consent of the Senate. An increase in the JDA's bonding authority is subject to the approval of the voters of New York State, and any new debt issuances are subject to the approval of the NYS Public Authorities Control Board.

New York Racing Association (NYRA)

The New York Racing Association (NYRA) became a not-for-profit corporation in 2008 and was selected as the State’s horseracing franchise (to conduct horseracing at Aqueduct, Belmont and Saratoga racetracks) for a 25-year term, pursuant to Chapters 18 and 140 of the laws of 2008. New York State has title to all the land underlying the racetracks per this legislation. The corporate life of NYRA is coterminous with the length of the franchise. NYRA is subject to State oversight. Per statute all franchise rights or interests revert to the State upon termination. State oversight entities have numerous review and approval powers, including the ability to revoke and cancel the franchise according to terms provided by law.

New York State Affordable Housing Corporation (AHC)

The AHC was created in 1985 by amendment to the Private Housing Finance Law as a subsidiary corporation to the New York State Housing Finance Agency (HFA). HFA is authorized to transfer various properties to AHC in order to carry out an affordable home ownership development program. The membership of AHC consists of the members of HFA.

New York State Bridge Authority

The New York State Bridge Authority is responsible for the operation of five toll highway bridges crossing the Hudson River. A Board of Directors appointed by the Governor administers it and the State of New York maintains title to the Authority's assets. The primary source of operating revenues for the Authority is the tolls levied upon users of the bridges.

New York State Energy Research and Development Authority (ERDA)

ERDA was established to foster development and commercialization of new energy technologies by making its funding and staff expertise available to other organizations, which perform energy-related research, development, and demonstration projects within the State. Portions of the Authority’s financing are derived from the issuance of tax-exempt, non-recourse revenue bonds. The Board of Directors is composed of 13 members (four who serve ex-officio), all of who are appointed by the Governor with the advice and consent of the Senate. All actions taken by the ERDA Board are subject to gubernatorial approval.

New York State Environmental Facilities Corporation (EFC)

The EFC is a public benefit corporation created in 1970 to promote environmental quality by providing low-cost financing and technical assistance to municipalities, businesses, and state agencies for environmental projects in New York State. The New York State Water Pollution Control Revolving Fund, established in 1989, provides low-interest loans to local governments for the capital costs of water pollution control facilities. The Board of Directors is composed of seven members, four of who are appointed by the Governor and three State officials serving ex-officio. Financing for new projects is subject to the approval of the NYS Public Authorities Control Board.

New York State Health Foundation

The New York State Health Foundation was established in 2002 to receive the charitable funds resulting from the conversion of Empire Blue Cross Blue Shield from a non-profit to a for-profit corporation. The legislation allocated five percent of the market value of Empire Blue Cross Blue Shield to create the foundation. This appears to be the only permissible funding source, resulting in an endowment worth approximately $250,000,000 as of June 30, 2006. The Foundation is governed by a nine-person Board of Directors and will use its resources to expand health insurance coverage to state residents who cannot afford to purchase their own coverage or whose coverage is inadequate; increase access to high-quality health care services to populations that have difficulty gaining access to services; and improve public and community health by educating New Yorkers about the issues and empowering communities to address them.

New York State Higher Education Services Corporation (HESC)

HESC acts to improve the post-secondary educational opportunities for the residents of New York State through the centralized administration of various State and Federal financial aid and loan programs. A 15-member board consisting of three State officials serving ex-officio, nine gubernatorial appointees, and three students administers the Corporation. HESC's revenues are derived primarily through State budgeting appropriations.


New York State Housing Finance Agency (HFA)

The HFA was created as a corporate governmental agency of the State responsible for financing the construction of low-income housing projects, hospitals, nursing homes, youth facilities, senior citizens centers, community mental health facilities, and facilities for the State University of New York. A Board of seven members including three State officials serving ex-officio administers the agency and four members appointed by the Governor. The State Public Authorities Control Board must review all new financing programs and a portion of the HFA's debt is backed by the "moral obligation" of the State. Upon termination of the Agency, all rights and properties will pass to the State.

New York State Olympic Regional Development Authority (ORDA)

ORDA was created in 1981 to develop a comprehensive and coordinated program for using the Olympic facilities in and around Lake Placid, New York. The Authority has a Board of Directors composed of 12 members, nine of who are appointed by the Governor and three serving ex-officio. In return for operating the facilities, the Authority will be reimbursed by the Park District of the Town of North Elba and the NYS Department of Environmental Conservation, both of which will be provided with the Authority's operating budget for review purposes.

New York State Thoroughbred Breeding and Development Fund Corporation (TBDFC)

The NYS Thoroughbred Breeding and Development Fund Corporation (TBDFC) was established to encourage the breeding of thoroughbred horses in New York State and to promote equine research. The Board of Directors consists of the Chairman of the State Gaming Commission, the Commissioner of Agriculture and Markets, three members of the State Gaming Commission as designated by the Governor, and six members appointed by the Governor. The Corporation's revenues are derived from a percentage of handle revenues collected at racetracks.

New York State Thruway Authority

The New York State Thruway Authority operates a 570-mile toll expressway, the longest toll superhighway in the United States. The Governor, with the advice and consent of the Senate, appoints the seven members of the Board of Directors. The Thruway Authority is responsible for issuing bonds and disbursing the proceeds to pay for the State portion of local highway and bridge projects. Prior to January 1, 2017, the Thruway Authority operated the 524-mile New York State Canal System through its subsidiary, the New York State Canal Corporation. Effective January 1, 2017, the New York State Canal Corporation became a subsidiary of the Power Authority of the State of New York. This authority is not subject to the PACB. Upon termination of the Authority, all properties will pass to the State.

Niagara Frontier Transportation Authority (NFTA)

The NFTA was created to promote the development and improvement of transportation facilities and related services within the Niagara Frontier Transportation District, which includes the Counties of Erie and Niagara. The Governor appoints the members of the Board of Directors. Revenues are derived from user charges and varying levels of federal, state and local operating assistance.

Ogdensburg Bridge and Port Authority

The Ogdensburg Bridge and Port Authority operates a bridge across the St. Lawrence River connecting Ogdensburg, New York and Prescott, Ontario. The Authority also operates a port, an airport, a short-line railroad, and an industrial park. The Governor appoints all members of the Board of Directors with the advice and consent of the Senate. Pursuant to New York State Public Authorities Law, the Division of the Budget exercises control over budget allocations and certain other actions taken by the Board of the Authority. Upon termination of the Authority, all rights will pass to and vest with the State.

Port of Oswego Authority

The Port of Oswego Authority is responsible for regulating the development and operation of port facilities within the Oswego Port District, which embraces the City of Oswego, the Town of Scriba, and all waters of the Oswego River and Lake Ontario within their boundaries. The Governor appoints the Board of Directors.

Power Authority of the State of New York (PASNY)

PASNY was created by legislative enactment in 1931 as a corporate instrumentality of the State. Its purpose is to improve the Niagara and St. Lawrence Rivers for commerce and navigation, develop the hydro-electric power resources of these rivers, and enhance and preserve the scenic beauty of the Niagara Falls and the rivers in the interests of the citizens of New York State. The scope of services provided has been expanded as the Authority sells power to over 40 municipal and cooperatively-owned utilities in New York, as well as numerous private concerns. A seven-member Board of Trustees directs the operations of PASNY, each of who is appointed by the Governor with the advice and consent of the Senate. As noted above, effective January 1, 2017, the New York State Canal Corporation, which operates the 524-mile New York State Canal System, became a subsidiary of PASNY.

 

Research Foundation for Mental Hygiene, Inc. (RFMH)

The Research Foundation for Mental Hygiene, Inc. is a not-for-profit corporation affiliated with the New York State Department of Mental Hygiene. RFMH conducts and finances the studies authorized by the State Office of Mental Health (OMH) and Office for People with Developmental Disabilities (OPWDD). A quarterly fiscal report is submitted to the Division of the Budget and the results of research projects are available to all citizens of New York State.

Rochester-Genesee Regional Transportation Authority (RGRTA)

The Rochester-Genesee Regional Transportation Authority was created to provide transportation and related services within the Rochester-Genesee Regional Transportation District, which encompasses the counties of Monroe, Genesee, Livingston, and Wayne. The Governor appoints the members of the Board of Directors. The State has been called upon to finance operating deficits at times, and the organization's debt issuance is subject to approval by the State Comptroller.

Roosevelt Island Operating Corporation

The Roosevelt Island Operating Corporation was established to operate, maintain, and manage the development of Roosevelt Island, its tramway, and parking facilities. Roosevelt Island Operating Corporation is dependent upon New York State for appropriations needed to balance its budget.

Roswell Park Cancer Institute Corporation (RPCIC)

The RPCIC was created in 1997 to operate the Roswell Park Cancer Institute. Roswell Park Cancer Institute is a public hospital and medical research center located in Buffalo which had been owned and operated by the State of New York and its Department of Health. Founded in 1898, the institute is the oldest cancer research and treatment facility in the country. This nationally-recognized institute’s mission has focused on research and the translation of research findings to the clinical setting. Ultimately, advances in prevention, detection, and treatment are transferred to the wider community through the institute’s participation in national clinical trials, publications, medical training programs, and outreach efforts to communities and hospitals across New York State.

State Insurance Fund

The State Insurance Fund is a non-profit agency of the State of New York whose primary purpose is the writing of insurance on a competitive basis for worker's compensation and disability benefits coverage. The Fund is administered by 10 commissioners appointed by the Governor and the Industrial Commissioner of the New York State Department of Labor, ex-officio. The New York State Commissioner of Taxation and Finance is the custodian of all cash and investment accounts as prescribed by the State Worker's Compensation Law.

State of New York Mortgage Agency

The State of New York Mortgage Agency was created to help make mortgage funds available to the public during times of credit scarcity. Its powers were later expanded to include providing mortgage insurance for qualifying real property loans. The Agency uses proceeds of its bond sales to purchase existing mortgages from banks on the condition that the banks reinvest the funds in new home mortgages within the State. The agency is administered by a nine-member Board that includes four members appointed by the Governor with the advice and consent of the Senate, one appointee of the temporary President of the Senate, one appointee of the Speaker of the Assembly, the State Comptroller or a member appointed by the Comptroller, the State Budget Director, and the Commissioner of Housing and Community Renewal. Upon termination, all rights and properties pass to the State.

State University of New York (SUNY) Foundations and Auxiliary Corporations

The discretely-presented component units included in the SUNY statements are: the campus-related foundations, student housing corporations and auxiliary services corporations. All these entities are legally separate not-for-profit organizations. The foundations are responsible for the fiscal administration of revenues and support received for the promotion, development, and advancement of the welfare of its campus, the State University, its students, faculty, staff, and alumni. The foundations receive the majority of their support and revenues through contributions, gifts, and grants, and provide benefits to their campus, students, faculty, staff, and alumni. The student housing corporations operate and administer certain housing and related services for students. The campus-based auxiliary services corporations operate, manage and promote educationally related services for the benefit of their campus communities.

The financial data for these organizations comes from the combined totals of the discretely presented component units reported in the SUNY financial statements. These combined totals are derived from each entity’s individual fiscal year-end financial statements reported in accordance with generally accepted accounting principles promulgated by FASB. The majority of these organizations have a May 31 or June 30 fiscal year-end.

Urban Development Corporation (UDC)

The Urban Development Corporation was originally responsible for the financing, construction, and operation of residential, commercial, and industrial facilities within New York State. Since its inception in 1968, the UDC’s mission has shifted to economic development.

In 1983, the UDC began issuing State-supported bonds for state prison construction. In 1995, the UDC began conducting business under the assumed business name “Empire State Development” which it shares with the Job Development Authority and the NYS Department of Economic Development.

The UDC is administered by a Board of nine members consisting of two State officials and seven appointees of the Governor. It is dependent on the State for appropriations to enable it to meet its financing requirements. The State Legislature is responsible for the funding of deficits. The Corporation must have the approval of the New York State Public Authorities Control Board for any new financing projects.

 

Guide to Financial Operations
REV.04/23/2019