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Office of Labor-Management Standards (OLMS)

U.S. Department of Labor Employment Standards Administration
Office of Labor-Management Standards
Los Angeles District Office
91 5 Wilshire Boulevard
Room 910
Los Angeles, CA 9001 7
(213) 534-6405 Fax:(213) 534-6413

December 18, 2008

Ms. Christine Page
Office & Professional Employees AFL-CIO, Local 174
178 S. Victory Blvd., #208
Burbank, CA 91502-2801
LM File Number: 010-572
Case Number: -

Dear Ms. Page:

This office has recently completed an audit of Office & Professional Employees, Local 174 under the Compliance Audit Program (CAP) to determine your organization's compliance with the provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LNIRDA). As discussed during the exit interview with you and Bookkeeper Josette Martinez on December 1,2008 the following problems were disclosed during the CAP. The matters listed below are not an exhaustive list of all possible problem areas since the audit conducted was limited in scope.

The audit disclosed:

Reporting Violation

The audit disclosed a violation of LMRDA Section 201(b), which requires labor organizations to file annual financial reports accurately disclosing their financial
condition and operations. The Labor Organization Annual Report Form LM-2 filed by Local 174 for fiscal year ending March 31,2008, was deficient in the following area:

Failure to File Bylaws

The audit disclosed a violation of LMRDA Section 201(a), which requires that a union submit a copy of its revised constitution and bylaws with its LM report
when it makes changes to its constitution or bylaws. Local 174 amended its constitution and bylaws in June 2007, but did not file a copy with its LM report for
that year.

Local 174 has now filed a copy of its constitution and bylaws.

Other Violation

The CAP disclosed the following other violation:

Inadequate Bonding

The audit revealed a violation of LNIRDA Section 502 (Bonding), which requires that union officers and employees be bonded for no less than 10 percent of the
total funds handled by those individuals or their predecessors during the preceding fiscal year. Local 174's officers and employees are currently bonded
for $85,000, but they must be bonded for at least $99,964.

Adequate bonding coverage was obtained and documentation provided during the audit. No further enforcement action will be taken.

I want to extend my personal appreciation to Office & Professional Employees, Local 174 for the cooperation and courtesy extended during this compliance audit. I strongly recommend that you make sure this letter and the compliance assistance materials provided to you are passed on to future officers. If we can provide any additional assistance, please do not hesitate to call.

Sincerely,
Alan Weiss
District Director
cc: Mr. Manuel Ortiz, President