Exhibit L - PACES Draft Financial Statement 2026.pdf

TATE UNIVERSITY OF NEW YORK

AUXILIARY SERVICES

CORPORATION CAMPUS: POTSDAM

FINANCIAL STATEMENTS

May 31, 2026

S

May 31, 2026

Table of Contents

STATE UNIVERSITY OF NEW YORK AUXILIARY SERVICES CORPORATION

CAMPUS: POTSDAM

INDEPENDENT AUDITOR’S REPORT ___________________________________________1

AUDITED FINANCIAL STATEMENTS ___________________________________________4

STATEMENT OF FINANCIAL POSITION ___________________________________ 4

STATEMENT OF ACTIVITIES _____________________________________________ 5

STATEMENT OF FUNCTIONAL EXPENSES ________________________________ 6

STATEMENT OF CASH FLOWS ___________________________________________ 7

NOTES TO FINANCIAL STATEMENTS _____________________________________ 8

SUPPLEMENTARY INFORMATION ____________________________________________31

SCHEDULE A – REVENUES AND EXPENSES BY SERVICE AREA ____________ 31

SCHEDULE B – OTHER AUXILIARY SERVICES REVENUES AND EXPENSES _ 32

SCHEDULE C – FOOTNOTE DISCLOSURE INFORMATION __________________ 33

SCHEDULE D – GROSS SALES DATA – SUBCONTRACTED OPERATIONS ____ 34

SCHEDULE E – CORPORATE FISCAL STABILITY DETERMINATION ________ 35

SCHEDULE F – AGENCY ACCOUNT ACTIVITY ___________________________ 36

INDEPENDENT AUDITOR’S REPORT

BOARD OF DIRECTORS

STATE UNIVERSITY OF NEW YORK AUXILIARY

SERVICES CORPORATION CAMPUS: POTSDAM

Opinion

We have audited the accompanying financial statements of State University of New York Auxiliary Services Corporation Campus: Potsdam, (a nonprofit organization), which comprise the statement of financial position as of May 31, 2026, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of State University of New York Auxiliary Services Corporation Campus:

Potsdam, as of May 31, 2026, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of State University of New York Auxiliary Services Corporation Campus: Potsdam and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about State University of New York Auxiliary Services Corporation Campus: Potsdam’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of State University of New York Auxiliary Services Corporation Campus: Potsdam's internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about State University of New York Auxiliary Services Corporation Campus: Potsdam's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Report on Summarized Comparative Information

We have previously audited the State University of New York Auxiliary Services Corporation Campus: Potsdam’s 2025 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated August 20, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended May 31, 2025, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Report on Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedules A through F are presented for purposes of additional analysis and are not a required part of the financial statements but are supplementary information required by the State University of New York. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Syracuse, New York August X, 2026

See notes to financial statements.

STATE UNIVERSITY OF NEW YORK AUXILIARY SERVICES CORPORATION

CAMPUS: POTSDAM

AUDITED FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

May 31, 2026 with Comparative Totals for 2025

2026 2025

ASSETS

Cash and Restricted Cash:

Cash 1,584,143$ 1,814,221$ Restricted Cash – Student Loan Fund 57,520 48,533

Total Cash and Restricted Cash 1,641,663 1,862,754 Accounts Receivable, Net 150,767 110,164 Prepaid Expenses 3,603 10,393 Inventories 70,048 69,808 Certificates of Deposit 1,200,000 1,400,000 Assets Held For Others - Agency 71,293 237,839 Prepaid Post Retirement Benefit and Pension, Net 472,260 159,729 Right-of-Use Asset - Operating Lease 88,516 90,601 Capital Assets, Net 1,035,480 1,130,713

TOTAL ASSETS 4,733,630$ 5,072,001$

LIABILITIES

Accounts Payable and Accrued Expenses 23,602$ 23,404$ Deferred Revenue 27,304 52,357 Deposits Held For Others (Agency) 71,293 237,839 Other Liabilities 110,468 115,245 Long-Term Debt/Notes 1,475,000 1,560,000 Operating Lease Liability 87,779 87,781 Other Long-Term Liabilities 31,534 56,880

Total Liabilities 1,826,980 2,133,506

NET ASSETS

Without Donor Restrictions:

Designated for Capital Assets – Net of Related Debt 0 0 Designated for Operating Reserves 605,794 672,866 Undesignated Net Assets 2,300,856 2,265,629

Total Net Assets 2,906,650 2,938,495

TOTAL LIABILITIES AND NET ASSETS 4,733,630$ 5,072,001$

LIABILITIES AND NET ASSETS

STATE UNIVERSITY OF NEW YORK AUXILIARY SERVICES CORPORATION

CAMPUS: POTSDAM

STATEMENT OF ACTIVITIES

Year Ended May 31, 2026 with Comparative Totals at May 31, 2025

OPERATING:

Revenues, Gains and Other Support:

Food Service 5,846,369$ 6,116,717$ Campus Store 35,354 132,438 Vending Operations 257,409 272,571 Other Auxiliary Revenue 113,625 133,312 Other Revenue 137,411 161,507

Total Revenues, Gains and Other Support 6,390,168 6,816,545

Expenses:

Food Service 5,675,534 5,719,108 Campus Store 48,514 420,437 Vending Operations 230,419 235,390 Other Auxiliary Expense 80,972 79,282 Management and General 756,396 815,306

Total Expenses 6,791,835 7,269,523

Change in Net Assets From Operating Activities (401,667) (452,978)

NONOPERATING INCOME (EXPENSE):

Interest Rate Swap Gain (Loss) 25,346 (3,577) Employee Retention Credit 0 408,039 Total Recognized in Net Periodic Pension Benefit and Unrestricted Net Assets 344,476 112,427

Change in Net Assets Without Donor Restrictions (31,845) 63,911

Net Assets, Beginning of Year 2,938,495 2,874,584

Net Assets, End of Year 2,906,650$ 2,938,495$

STATE UNIVERSITY OF NEW YORK AUXILIARY SERVICES CORPORATION

CAMPUS: POTSDAM

STATEMENT OF FUNCTIONAL EXPENSES

Year Ended May 31, 2026 with Summarized Totals at May 31, 2025

Food Service Campus Store Vending

Operations Other Total Program

Services Management and

General 2026

(Summarized)

Salaries And Wages 2,299,350$ 0$ 12,850$ 0$ 2,312,200$ 421,364$ 2,733,564$ 2,725,691$ Employee Benefits 723,108 0 3,355 0 726,463 140,292 866,755 1,104,299

Total Salaries and Related Expenses 3,022,458 0 16,205 0 3,038,663 561,656 3,600,319 3,829,990

Advertising 1,372 730 0 0 2,102 2,672 4,774 6,295 Contractual Services 32,069 0 0 0 32,069 63,807 95,876 62,056 Cost of Goods Sold 1,719,502 0 204,214 79,032 2,002,748 0 2,002,748 2,216,575 Insurance 52,921 8,988 0 1,940 63,849 5,858 69,707 71,604 Interest Expense 0 0 0 0 0 84,014 84,014 85,270 Other Expenses 79,833 127 0 0 79,960 14,608 94,568 150,155

Printing and Postage 1 0 0 0 1 796 797 921 Professional Fees 8,091 0 0 0 8,091 0 8,091 13,450 Rent and Equipment 98,773 11,850 5,000 0 115,623 0 115,623 108,150 Repairs and Maintenance 15,277 0 0 0 15,277 0 15,277 23,382 Supplies And Materials 320,907 0 0 0 320,907 11,262 332,169 312,579 Telephone 7,858 553 0 0 8,411 4,078 12,489 10,563 Travel and Conferences 2,933 0 0 0 2,933 3,048 5,981 12,627 Uniforms 7,793 0 0 0 7,793 0 7,793 7,748 Benefit Obligations 189,400 13,790 5,000 0 208,190 0 208,190 208,190 Credit Losses 32,481 0 0 0 32,481 0 32,481 18,782 Depreciation Expense 83,865 12,476 0 0 96,341 4,597 100,938 131,186

TOTAL OPERATING EXPENSES 5,675,534 48,514 230,419 80,972 6,035,439 756,396 6,791,835 7,269,523 Interest Rate Swap 0 0 0 0 0 0 0 3,577

TOTAL NONOPERATING EXPENSES 0 0 0 0 0 0 0 3,577

TOTAL EXPENSES 5,675,534$ 48,514$ 230,419$ 80,972$ 6,035,439$ 756,396$ 6,791,835$ 7,273,100$

Program Services Totals

STATE UNIVERSITY OF NEW YORK AUXILIARY SERVICES CORPORATION

CAMPUS: POTSDAM

STATEMENT OF CASH FLOWS

Year Ended May 31, 2026 with Comparative Totals at May 31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES

Food Service Activities Receipts 5,793,923$ 6,117,540$ Other Auxiliary Service Activities Receipts 357,886 536,225 Other Receipts 82,063 509,193 Salaries and Wages Payments (2,731,082) (2,727,349) Employee Benefits Payments (869,039) (1,098,520) Payments to Suppliers (2,968,546) (2,858,715) Interest Income 89,604 93,203 Interest Payments (85,695) (85,826) Agency Receipts – Net (166,546) (91,057)

Net Cash Provided By (Used In) Operating Activities (497,432) 394,694

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale of Certificates of Deposit 200,000 0 Proceeds from Sale of Capital Assets 500 0 Purchase of Capital Assets (5,705) (24,732)

Net Cash Provided By (Used In) Investing Activities 194,795 (24,732)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments on Long-Term Debt/Notes (85,000) (80,000) Net Cash Used In Financing Activities (85,000) (80,000)

Net Change in Cash and Restricted Cash (387,637) 289,962

Cash and Restricted Cash, Beginning of Year 2,100,593 1,810,631

Cash and Restricted Cash, End of Year 1,712,956$ 2,100,593$

Cash 1,584,143$ 1,814,221$ Restricted Cash – Student Loan Fund 57,520 48,533 Assets Held For Others - Agency 71,293 237,839

Total Cash and Restricted Cash 1,712,956$ 2,100,593$

CAMPUS: POTSDAM

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF OPERATIONS

The State University of New York Auxiliary Services Corporation Campus: Potsdam (the “Organization”) is a not-for-profit organization. The general purposes of the Organization are to establish, operate, manage, and promote educationally related services for the benefit of the campus community of the State University of New York at Potsdam (“SUNY Potsdam”).

The Organization provides food services, campus store and other ancillary services to the SUNY Potsdam Campus. SUNY Potsdam is a unit of the State University of New York (the “State”).

The Organization operates under the terms of an agreement with the State covering substantially all of the Organization’s operations. The current operating agreement is effective through June 30, 2027. As of the date of this report, the Organization has not entered into a renewal of the operating agreement and intends to seek an extension of the agreement from the state. Among other items, the agreement outlines the scope of, and places limitations on, the Organization’s services and activities. It also limits the amount of income that the Organization may obtain from these services and activities. The Organization may use net revenues over expenditures from operations for approved budgeted expenditures.

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Organization’s financial statements were prepared on the accrual basis of accounting in accordance with generally accepted accounting principles and accordingly reflect all significant receivables, payables and liabilities.

Basis of Presentation

The Organization reports information regarding its financial positions and activities according to two classes of net assets: net assets without donor restrictions, and net assets with donor restrictions.

Net Assets Without Donor Restrictions – Are currently available for operating purposes subject only to the broad limits resulting from the nature of the organization. Net assets without donor restrictions generally result from receiving revenues from food service and other auxiliary receipts, less expenses incurred in providing program-related services and performing administrative functions.

Net Assets With Donor Restrictions – Net Assets whose use is limited by donor-imposed time and/or purpose restrictions. The Organization did not have any net assets with donor restrictions as of May 31, 2026 and 2025.

CAMPUS: POTSDAM

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES – Continued

Estimates

Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. On an ongoing basis, management evaluates the estimates and assumptions based on new information. Management believes that the estimates and assumptions are reasonable in the circumstances; however, actual results could differ from those estimates.

Revenue and Revenue Recognition

The Organization recognizes revenue from student fees during the year in which the related services are provided to students. The performance obligation of providing meal plans for food service is satisfied ratably over the academic semester in which the student purchases a meal plan. Payment for meal plans is required before the start of the academic year. All amounts received prior to the commencement of the academic year, are deferred to the applicable period.

Food sales not purchased via meal plans, are recognized at point of sale. Revenues derived from campus store sales are recognized as the goods are delivered to the buyer. As of August 1, 2024, the campus store is administered by a third-party distribution company and the Organization earns commission revenues from the sales at the campus retail store. These commissions are based on a percentage of gross sales and are recognized as revenue when the underlying sales occur, which is the point at which the performance obligation is satisfied. Vending revenues are grossed up to reflect the total sales to students and cost of goods sold are recognized to arrive at the total net commission revenue received from the vendor.

Capital Assets

Capital assets are recorded at cost. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets. The Organization capitalizes purchases exceeding $1,000 with useful lives of three to five years for equipment and ten to fifteen years for improvements.

Expenditures for maintenance, repairs and renewals of relatively minor items are charged to operations as incurred. Replacements of significant items are capitalized.

Deferred Revenue

Deferred revenue represents fees received in advance from faculty, staff and campus store gift cards, and will be recognized over the periods to which the fees are consumed.

CAMPUS: POTSDAM

Reporting and Accounting Guidelines

The agreement between the Organization and the State stipulates that the Organization will comply with reporting and accounting guidelines as promulgated by the State. Some of the major aspects of the State guidelines are as follows:

1. Net Assets Without Donor Restrictions, Designated for Capital Assets, Net of Related Debt – Equal to the original cost of capital assets, including land, buildings, building/leasehold improvements and equipment less accumulated depreciation and any related debt. Assets associated with debt financing such as cash reserves, deposits held by trustee, interest rate contract and deferred financing costs, should be included in the determination of this net asset classification. Capital assets net of related debt clearly identifies the Organization's ownership share and related equity / net asset balance related to plant and equipment.

2. Net Assets Without Donor Restrictions, Designated for Operating Reserves – This designated net asset class is determined as one twelfth (1/12), representing one month of the previous year's operating expenses. Operating expenses include all expenses except campus support, investment losses, and non-recurring expenses (e.g., loss on sale of assets). This is a minimum threshold for operating reserves.

3. Net Assets Without Donor Restrictions, Undesignated – Represents the remaining net assets without donor restrictions, determined as the total net assets without donor restrictions less the designated net assets without donor restrictions in items 1 and 2 above.

Cash and Restricted Cash

For purposes of the Statement of Cash Flows, the Organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. There were no cash equivalents at May 31, 2026 and 2025. Restricted cash represent unspent funds for cash held for others and cash restricted for student loans.

Certificates of Deposit

Certificates of deposit totaling $1,200,000 at May 31, 2026 bear interest ranging from 3.70% to 5.05% and have maturities ranging from approximately one to nineteen months, with penalties for early withdrawal. Any penalties for early withdrawal would not have a material effect on the financial statements.

CAMPUS: POTSDAM

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are stated at unpaid balances, less an allowance for credit losses.

Concentrations of credit risk with respect to accounts receivable is limited due to the large number of customers. Accounts receivable from the State represents principally amounts due from students for food. Effective June 1, 2025, the Organization has elected to apply the practical expedient permitted by ASU 2025-05 to estimate expected credit losses using current market conditions as a proxy for reasonable supportable forecasts. The Organization maintains an allowance for credit losses to reduce outstanding receivables to their net realizable value. A considerable amount of judgment is required when determining expected credit losses. Estimates of such losses are recorded when management believes a customer, or group of customers, may not be able to meet their financial obligations due to deterioration in financial condition or credit rating. Factors relevant to the assessment include prior collection history with customers, the related aging of past due balances, projections of credit losses based on historical trends in credit quality indicators or past events. The Organization considers these factors to be a reasonable estimate of future economic conditions over the remaining contractual term of the receivables. At May 31, 2026 and 2025, management had recorded an allowance for credit losses in the amount of $1,368,699 and $845,770, respectively. The majority of the allowance for credit losses is related to receivables from the State from students for food from prior years’ academic semesters. Credit losses for the years ended May 31, 2026 and 2025 were approximately $32,000 and $19,000, respectively.

The change in allowance for credit losses for the years ended May 31 were as follows:

Balance at Beginning of Year 845,770$ 859,768$ Provision for Credit Losses 32,481 18,782 Allowance Established on Historically

Unrecorded Receivables 467,492 0 Amounts Written off Against the Allowance, Net of Recoveries 22,956 (32,780) Balance at End of Year 1,368,699$ 845,770$

The amounts due from the State and the related allowance for credit losses were adjusted during the current year to reflect additional aged receivables that remain outstanding. The adjustment increased amounts due from the State and the related allowance for credit losses by approximately $467,000 for the year ended May 31, 2026.

CAMPUS: POTSDAM

Inventories

Inventories consist of supplies and food for resale and are priced generally at the lower of cost or net realizable value, on a first-in, first-out basis.

Interest Rate Swap

The Organization uses an interest rate swap to mitigate interest-rate risk on the bonds payable (Note 6). The derivative instrument is recorded in the accompanying Statement of Financial Position at fair value. The change in fair value of the derivative instrument is reflected in non-operating income (expenses) in the accompanying Statement of Activities. The period cash settlements on the derivative instrument are recorded in interest expense.

Advertising

The Organization expenses advertising costs as they are incurred. Advertising expenses for the years ended May 31, 2026 and 2025 were $4,774 and $6,295, respectively.

Income Tax Status

The Organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to the Organization’s tax-exempt purpose is subject to taxation as unrelated business income. Management has determined that the Organization is not subject to unrelated business income tax.

The Organization’s Forms 990, Return of Organization Exempt from Income Tax, for the tax years ended 2025, 2024, and 2023 are subject to examination by the IRS, generally for 3 years after they were filed. Based on its analysis, the Organization has determined that there were no uncertain tax positions, and that the Organization should prevail upon examination by the taxing authorities.

Functional Allocation of Expenses

Expenses consist of costs related to operation of food service, the campus store, and vending operations, as well as other auxiliary activities and campus support. The Organization’s operating costs have been allocated based on direct identification when possible, and allocations if a single expenditure benefits more than one function. For the years ended May 31, 2026 and 2025, all costs have been allocated based on direct identification or allocated on a personnel-cost basis. Salaries and related benefits are allocated based on estimates of time and effort.

CAMPUS: POTSDAM

Statement of Cash Flows

For purposes of the Statement of Cash Flows, the Organization uses the direct method of reporting net cash flows from operating activities.

Cash paid for amounts included in the measurement of lease liabilities for the years ended May 31 are as follows:

Operating Cash Flows From Operating Leases 76,949$ 78,356$

Supplemental disclosures of noncash investing and financing activities for the years ended May 31 are as follows:

Right of Use Asset - Operating Lease in Exchange for Operating Lease Liability 74,538$ 0$

Comparative Financial Information

The financial statements include certain prior-year summarized comparative information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended May 31, 2025, from which the summarized information was derived.

Leases

The Organization leases washers and dryers for on-campus use at SUNY Potsdam. The Organization determines if an arrangement is a lease at inception. Operating leases are included in right of use asset (“ROU”) – operating leases and the operating lease liability on the statement of financial position.

CAMPUS: POTSDAM

Leases – Continued

ROU assets represent the Organization’s right to use an underlying asset for the lease term and lease liabilities represent the Organization’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Organization’s leases do not provide an implicit rate, the Organization has elected to use a risk-free rate (incremental borrowing rate) based on the information available at the commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. The Organization’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Organization will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Organization’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Assets Held for Others – Agency

Assets held for others (agency) totaled $71,293 and $237,839 at May 31, 2026 and 2025, respectively, and represent cash held for others in the Organization's Statement of Financial Position as assets held for others. The Organization reports the corresponding liability as deposits held for others (agency) on the Statement of Financial Position. Refer to Schedule F of the supplementary information, for the annual activity and beneficiaries of the funds.

Date of Management’s Review

The Organization has evaluated events and transactions that occurred between May 31, 2026 and August X, 2026, which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements. Management has concluded that no such events have occurred which require disclosure.

CAMPUS: POTSDAM

NOTE 3 – ACCOUNTS RECEIVABLE – NET

Accounts receivable, net, consisted of the following at May 31:

Due from State 1,417,009$ 874,115$ Other 102,457 81,819

1,519,466 955,934 Less: Allowance for Credit Losses (1,368,699) (845,770)

Total 150,767$ 110,164$

NOTE 4 – CAPITAL ASSETS – NET

Capital assets, net, consisted of the following at May 31:

Leasehold Improvements 3,832,809$ 3,832,809$ Equipment 4,616,322 4,639,067

8,449,131 8,471,876 Less: Accumulated Depreciation (7,413,651) (7,341,163)

Total 1,035,480$ 1,130,713$

Depreciation expense was $100,938 and $131,186 for the years ended May 31, 2026 and 2025, respectively.

NOTE 5 – RETIREMENT PLANS

The Organization has a 403B (Annuity) Program. Employees who work more than 1,000 hours annually are eligible to participate. The Organization matches deferrals up to $7,000 for management employees hired after June 1, 2012, and $6,000 for management employees hired before June 1, 2012. The Organization will match 50% of the first $2,000 of deferrals for hourly employees. Retirement contribution expense for the years ended May 31, 2026 and 2025 was approximately $71,000.

CAMPUS: POTSDAM

NOTE 5 – RETIREMENT PLANS – Continued

The Organization has a defined benefit pension plan covering all full-time employees. Benefits for salaried employees are based on 2% of compensation during each plan year after June 1, 1997, and 1.8% of compensation for each year prior to June 1, 1997. Benefits for hourly employees are based on a benefit formula. The Plan for hourly employees was frozen effective May 31, 1998, so that there would be no further employee contributions or benefit accruals after that date.

Employees hired after May 31, 2012, will not be eligible to participate in the defined benefit plan.

The following tables illustrate the change in benefit obligation, change in plan assets and funded status of the pension plan as of and for the years ended May 31:

Change in Benefit Obligation Projected Benefit Obligation, Beginning of Year 1,539,982$ 1,497,012$ Service Cost 31,944 30,916 Interest Cost 89,009 83,137 Amendments / Curtailments (61,961) 0 Actuarial Gain (13,841) (47,155) Benefits/Expenses Paid (25,399) (23,928)

Projected Benefit Obligation, End of Year 1,559,734$ 1,539,982$

Change in Plan Assets:

Fair Value of Plan Assets, Beginning of Year 1,699,711$ 1,575,063$ Actual Return on Plan Assets 357,682 148,408 Employer Contribution 0 168 Benefits/Expense Paid (25,399) (23,928)

Fair Value of Plan Assets, End of Year 2,031,994$ 1,699,711$

Funded Status:

Fair Value of Plan Assets in Excess of

Benefit Obligations 472,260$ 159,729$

CAMPUS: POTSDAM

Amounts recognized in the Statement of Financial Position:

Prepaid Post Retirement Benefit and Pension, Net 472,260$ 159,729$

The accumulated benefit obligation for the Plan was approximately $1,560,000 and $1,462,000, at May 31, 2026 and 2025, respectively.

The components of net periodic pension cost and other charges recognized in net assets without donor restrictions for the years ended May 31 are as follows:

Net Periodic Pension Benefit:

Interest Cost 89,009$ 83,137$ Expected Return on Plan Assets (113,348) (111,360) Amortization of Unrecognized Loss 3,411 16,283

Net Periodic Pension Benefit (20,928) (11,940)

Pension-Related Charges Other Than Periodic Pension Benefit:

Curtailment Gain (61,961) 0 Change in Unamortized Actuarial Gain (258,176) (84,204) Amortization Of Actuarial Loss (3,411) (16,283)

Pension-Related Charges Other Than Periodic Pension Benefit (323,548) (100,487)

Total Recognized in Net Periodic Pension Benefit and Net Assets Without Donor Restrictions (344,476) (112,427)

Service Cost, Included in Salaries and Wages 31,944 30,916

Total Recognized (Net Assets Without Donor Restrictions) (312,532)$ (81,511)$

CAMPUS: POTSDAM

The assumptions used to determine the benefit obligation at May 31 are as follows:

Weighted Average Assumptions at Year-End:

Discount Rate - Net Periodic Pension Cost/Benefit 5.81% 5.57% Discount Rate - Benefit Obligations 5.68% 5.81% Expected Return on Plan Assets - Net Periodic Pension Cost/Benefit 6.70% 7.09% Average Long-Term Rate of Compensation Increase 3.00% 3.00%

Expected Return on Plan Assets - Benefit Obligations 6.82% 6.70%

The following presents the estimated future benefit payments expected to be paid over the next ten years:

2027 21,077$ 2028 28,249 2029 66,762 2030 125,997 2031 126,464 2032-2036 648,692

1,017,241$

There’s no expected contribution for fiscal year ending May 31, 2027.

The Organization’s expected rate of return on plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class.

Plan Assets – The Organization’s pension plan weighted-average asset allocations at May 31, by asset category, are as follows:

2026 2025

Cash 1% 1% Equity Securities 72% 66% Alternatives 4% 5% Fixed Income 23% 28%

100% 100%

CAMPUS: POTSDAM

During the year ended May 31, 2026, the retirement plan experienced a curtailment resulting from a reduction in the expected future service of certain participants. As a result of the curtailment, the retirement plan recognized a gain of approximately $62,000, which is included in the pension-related charges other than periodic pension benefit for the year.

The Organization’s investment policy for plan assets is to manage the portfolio to preserve principal and liquidity while maximizing the return on the investment portfolio through the full investment of available funds. The portfolio is diversified by investing in multiple types of investment-grade securities. The investment policy requires assets of the plan to be primarily invested in short-term securities with at least an investment grade rating to minimize interest rate and credit risk as well as to provide for an immediate source of funds. Investment management of the assets is in accordance with the plan's Investment Policy that includes an asset target allocation of 60-80% Equities, 20-40% Debt Securities, 0-5% Real Estate and 0-5% Other. The Organization attempts to mitigate investment risk by rebalancing between equity and bond asset classes as the Organization’s contributions and monthly benefit payments are made. Although changes in interest rates may affect the fair value of the investment portfolio and cause unrealized gains or losses, such gains or losses would not be realized unless the investments are sold.

NOTE 6 – INDEBTEDNESS

Line of Credit

The Organization has a working capital line of credit agreement with maximum available borrowings of $600,000 as of May 31, 2026 and matures on June 30, 2027. The line of credit bears interest at bank prime less 1% (5.75% and 6.50% as of May 31, 2026 and 2025) with a floor of 3% and is due on demand. There were no amounts outstanding at May 31, 2026 and 2025.

Long-term Debt/Notes

On June 27, 2007, the Organization borrowed $2.5 million of Civic Facility Revenue Bonds issued by the St. Lawrence County Industrial Development Agency from Citizens Bank. The proceeds of the bonds were utilized for renovation and reconstruction of Carson Hall and other construction and renovation projects on the SUNY Potsdam campus. The bonds were issued using a letter-of-credit supplied by a Bank. The investor returned the bonds for payment by the Bank during March 2009 due to the credit rating of the Bank. The bonds were placed with another investor during June 2009.

CAMPUS: POTSDAM

NOTE 6 – INDEBTEDNESS – Continued

Long-term Debt/Notes at May 31, consist of the following:

The bonds are payable in annual installments through July 2037. See "Interest Rate Contract" below. Collateral for the bonds include a security interest in all equipment and appurtenances acquired with proceeds of the bonds. 1,475,000$ 1,560,000$

Total Long-Term Debt/Notes $ 1,475,000 $ 1,560,000

Future maturities of long-term debt/notes at May 31 are as follows:

2027 90,000 2028 95,000 2029 100,000 2030 105,000 2031 110,000 Thereafter 975,000

Total 1,475,000$

Interest Rate Contract

In connection with the Civic Facility Reserve Bonds issued, an interest rate swap agreement was entered into. Neither the Organization nor the counter party, which is a prominent financial investment institution, is required to collateralize their respective obligations under these swaps.

The purpose of these swaps is to fix the interest rate on notes, reducing certain exposures to interest rate fluctuations. At May 31, 2026 and 2025, the notional amount of the swap was $1,475,000 and $1,560,000, respectively. The Organization will pay the counter party at a fixed rate of 4.505%. The counter party will pay the Organization at a variable rate equal to Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index.

CAMPUS: POTSDAM

NOTE 6 – INDEBTEDNESS – Continued

Interest Rate Contract – Continued

Interest expense in the amount of approximately $49,000 and $38,000 was incurred as a result of settlements under these agreements for the years ended May 31, 2026 and 2025, respectively.

The notional amount does not represent an amount exchanged by the parties and is thus not a measure of exposure to the Organization. The amounts exchanged are based on the notional amounts and other terms of the swap. The Organization did not elect hedge accounting for these agreements. The Organization recognized a gain and loss included in the accompanying Statement of Activities, of approximately $25,300 and ($3,600), respectively, and a corresponding decrease and increase, respectively, in other long-term liabilities representing the change in fair value of the interest rate swap agreement for the years ended May 31, 2026 and 2025, respectively.

The fair value of derivative instruments, included in Other Long-Term Liabilities in the accompanying statement of financial position as of May 31, is as follows:

Interest Rate Contract $ 31,534 $ 56,880

Total interest expense related to long-term debt and interest rate contracts was approximately $84,000 and $85,000 for the years ended May 31, 2026 and 2025, respectively.

NOTE 7 – POST-EMPLOYMENT BENEFITS

The Organization provides post-employment health insurance coverage to certain retired employees in accordance with their employment contracts. As of May 31, 2025, two retired employees were receiving these benefits. During the year ended May 31, 2026, one retired employee elected to discontinue their post-employment health insurance coverage. No additional retirees will receive these benefits. The Organization has not accrued these benefits, as it is not able to estimate the amount of the accrual. Post-employment health insurance payments recognized for the years ended May 31, 2026 and 2025 were approximately $21,000 and $24,000, respectively.

CAMPUS: POTSDAM

NOTE 8 – RELATED PARTY TRANSACTIONS

Related party transactions as of and for the years ended May 31, 2026 and 2025 are as follows:

Rent and Utility Expense

The Organization incurred rent and utility expense to the State for use of facilities on the SUNY Potsdam campus. The assessment charges are subject to yearly negotiations between the College and the Organization. These rent and utility expenses are components of rent and equipment and benefit obligations on the statement of functional expenses.

Rent and utility expense during the years ended May 31, was as follows:

Dining Services 288,173$ 280,700$ College Store 25,640 25,640 Vending 10,000 10,000

Total Rent and Utility Expense 323,813$ 316,340$

Support Services

The Organization provides accounting and administrative services to The Student Government Association of the State University of New York Potsdam, New York (“SGA”). Personnel serving the SGA are employees of the Organization. As reimbursement for these services, the Organization received approximately $110,000 and $103,000 for the years ended May 31, 2026 and 2025, respectively. The reimbursement amount is based on the actual cost incurred by the Organization in providing these services. The reimbursements are offset against salaries and wages expense as presented in the Statement of Functional Expenses.

CAMPUS: POTSDAM

NOTE 9 – FAIR VALUE MEASUREMENTS

Financial Accounting Standards Board Accounting Standard Codification (“FASB ASC”) No. 820, “Fair Value Measurements,” establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC No. 820 are described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access.

Level 2 Inputs to the valuation methodology include:

Quoted prices for similar assets or liabilities in active markets;

Quoted prices for identical or similar assets or liabilities in inactive markets;

Inputs other than quoted prices that are observable for the asset or liability;

Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at May 31, 2026 and 2025.

CAMPUS: POTSDAM

NOTE 9 – FAIR VALUE MEASUREMENTS – Continued

Fair value of assets and liabilities measured on a recurring basis at May 31, 2026 is as follows:

Level 1 Level 2 Level 3 Total

Pension Plan Assets:

Cash 20,188$ 0$ 0$ 20,188$ Equity Securities 1,478,176 0 0 1,478,176 Alternatives 71,404 0 0 71,404 Fixed Income 462,226 0 0 462,226

Interest Rate Contract 0 31,534 0 31,534

2,031,994$ 31,534$ 0$ 2,063,528$

Fair value of assets and liabilities measured on a recurring basis at May 31, 2025 is as follows:

Level 1 Level 2 Level 3 Total

Pension Plan Assets:

Cash 13,204$ 0$ 0$ 13,204$ Equity Securities 1,114,789 0 0 1,114,789 Alternatives 100,297 0 0 100,297 Fixed Income 471,421 0 0 471,421

Interest Rate Contract 0 56,880 0 56,880

1,699,711$ 56,880$ 0$ 1,756,591$

The carrying amounts of cash and cash equivalents and short-term investments approximate fair value because of the short maturity of those financial instruments.

Fair values for the interest rate contract are determined using mid-market valuations based on mid-market, benchmark, levels of swap transactions with terms substantially similar to this contract.

CAMPUS: POTSDAM

NOTE 10 – LIQUIDITY AND AVAILABILITY OF FINANCIAL

The Organization monitors its liquidity so that it is able to meet its operating needs and other contractual commitments. The following table reflects the Organization’s financial assets at May 31, 2026 and 2025 that could readily be made available within one year of the Statement of Financial Position date to fund expenses without limitation.

Financial Assets:

Cash and Restricted Cash 1,641,663$ 1,862,754$ Certificates of Deposit 1,200,000 1,400,000 Accounts Receivable, Net 150,767 110,164 Assets Held For Others (Agency) 71,293 237,839

Total Financial Assets at Year-end 3,063,723 3,610,757

Less Those Unavailable for General Expenditures Within One Year Due To:

Purpose Restriction - Student Loan Fund (57,520) (48,533) Purpose Restriction - Deposits Held for Others (71,293) (237,839)

Total Unavailable for General Expenditures Within One Year (128,813) (286,372)

Total Financial Assets Available to Meet Cash Needs for General Expenditures Within One Year 2,934,910$ 3,324,385$

In addition to financial assets available to meet general expenditures over the year, the Organization operates with a balanced budget and anticipates covering its general expenditures by collecting sufficient fees and sales. The Organization has a $600,000 line of credit available if needed for cash flow, see Note 6.

CAMPUS: POTSDAM

NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table disaggregates the Organization’s revenue from contracts with customers by major sources for the years ended May 31:

Food Service Revenue - Meal Plans 3,952,897$ 4,292,869$ Food Service Revenue - Point of Sale 1,893,472 1,823,848 Campus Store - Commissions 33,802 30,282 Campus Store - Point of Sale 1,552 102,156 Vending - Point of Sale 257,409 272,571 Laundry - Contract 107,625 127,312 Laundry - Other 6,000 6,000 Interest Income 86,793 94,359 Service Revenue 7,006 7,575 Other Revenue 43,612 59,573

Total Revenues, Gains and Other Support 6,390,168$ 6,816,545$

The Organization provides food services, campus store and other ancillary services to the SUNY Potsdam Campus. Therefore, the Organization’s viability is dependent on enrollment at SUNY Potsdam, as well as the ability for SUNY Potsdam to continue to educate with a live classroom structure. Receivables from contracts with customers is a component of accounts receivable, net on the statement of financial position. At May 31, the following table represents net receivables from contracts with customers:

2026 2025 2024

Due from State 1,417,009$ 874,115$ 905,432 Less: Allowance for Credit Losses (1,368,699) (845,770) (859,768)

Total 48,310$ 28,345$ 45,664$

CAMPUS: POTSDAM

NOTE 12 – FINANCIAL POSITION AND MANAGEMENT PLANS

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the year ended May 31, 2026, the Organization had a loss from operations of approximately $402,000.

Management continues to explore ways to reduce costs during the fiscal year ending May 31, 2027. The Organization has made the decision to close Lehman residential meal plan option and move to a meal solution of an all you care to eat meal to a single station out of the Student Union Dining Court retail location for dinners only. This will drastically reduce labor needs for dining services. Dining service reduced its labor force by transitioning a salaried manager to an hourly assistant manager for the fiscal year ending May 31, 2027. The Organization reduced its labor force by two assistant managers during the fiscal year ending May 31, 2026 that will further reduce the Organization’s labor and benefit costs during the upcoming fiscal year end.

The Organization will continue with the changes made during the fiscal year ending May 31, 2026, to the employee benefits through partnering with a broker that created significant savings and will project similar cost savings for the fiscal year ended May 31, 2027. Additionally, changes in senior management will also further reduce the Organization’s labor and benefits costs in each operational area. A manager has retired and the State has assumed responsibility for the card operating system as the Organization will continue to manage the meal plans for the system. The Director of Dining has also retired from the Organization, and the Executive Director will assume the role. The Organization has combined the roles of marketing coordinator with the catering coordinator position. As a result, the Organization’s changes will result in a reduction of two administrative personnel that will further reduce the labor and benefit costs.

Given these initiatives, management concluded that the “substantial doubt” criteria has been mitigated, giving the Organization the opportunity to continue as a going concern. Accordingly, the financial statements do not include any adjustments relating to the recoverability of the recorded asset amounts or the amount of the liabilities that might be payable and necessary should the Organization be unable to continue as a going concern.

CAMPUS: POTSDAM

NOTE 13 – EMPLOYEE RETENTION CREDIT

The CARES ACT provides an employee retention credit (“CARES Employee Retention Credit”), which is a refundable tax credit against certain employment taxes up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee through December 31, 2020. Additional relief provisions were passed by the United States Government, which extend and slightly expand the qualified wage caps on these credits through September 30, 2021. Based on these additional provisions, the tax credit is now equal to 70% of qualified wages paid to employees during a quarter. The Organization qualifies for the credit under the CARES Act for qualified wages paid in 2021. During the year ended May 31, 2025, the Organization recorded approximately $327,000 related to the CARES Employee Retention Credit as nonoperating income in the Statement of Activities.