Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
New York District Office
201 Varick Street
New York, NY 10014
(646)264-3190 Fax: (646)264-3191
May 28, 2008
Mr. Greg Hancox, President
International Actors of Theatrical Stage Employees AFL-CIO
P.O. Box 3122
Secaucus, NJ 07096
Re: Case Number: ||||||||||
Dear Mr. Hancox:
This office has recently completed an audit of Stage and Picture Operators Local 59 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 (LMRDA). As discussed during the exit interview with you on May 13, 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 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-3 filed by Local 59 for fiscal year ending December 31, 2006, was deficient in the following areas:
1. Disbursements to Officers (LM-3)
Local 59 did not include some reimbursements to officers totaling at least $9700 in the amounts reported Item 24 (All Officers and Disbursements to Officers). It appears the union erroneously reported these payments in Item 51 Other Disbursements.
The union must report most direct disbursements to Local 59 officers and some indirect disbursements made on behalf of its officers in Item 24. A "direct disbursement" to an officer is a payment made to an officer in the form of cash, property, goods, services, or other things of value. See the instructions for Item 24 for a discussion of certain direct disbursements to officers that do not have to be reported in Item 24. An "indirect disbursement" to an officer is a payment to another party (including a credit card company) for cash, property, goods, services, or other things of value received by or on behalf of an officer. However, indirect disbursements for temporary lodging (such as a union check issued to a hotel) or for transportation by a public carrier (such as an airline) for an officer traveling on union business should be reported in Item 48 (Office and Administrative Expense).
2. Cash Reconciliation
It appears that the cash figures reported in Item 25 are not the cash figures according to the union’s books after reconciliation to the bank statements. The instructions for Item 25 state that the union should obtain account balances from its books as reconciled to the balances shown on bank statements.
3. Per Capita Taxes
Local 59 improperly included dues receipts payments in Item 39 Per Capta Tax. All dues receipts provided via employer check-off arrangements must be reflected in Item 38 Dues.
4. Total Receipts
Your organization’s total amount of receipts was inaccurately reported in Item 44.
The audit disclosed that total receipts were at least $176,400. However, LM-3 report for fiscal year ending December 31, 2006 report reflected total receipts in the amount of $179,273.
5. Total Disbursements
Local 59 inaccurately reported total disbursements in Item 55. The LM-3 report for fiscal year ending December 31, 2006 reflected that total disbursements were $148,416. However, the audit findings disclosed that your union’s total disbursements were approximately $145,300.
Local 59 must file an amended Form LM-3 for fiscal year ending December 31, 2006, to correct the deficient items discussed above. I provided you with a blank form and instructions, and advised you that the reporting forms and instructions are available on the OLMS website (www.olms.dol.gov). The amended Form LM-3 should be submitted to this office at the above address as soon as possible, but not later than May 30, 2008. Before filing, review the report thoroughly to be sure it is complete, accurate, and signed properly with original signatures.
I want to extend my personal appreciation to Stage and Picture Operators Local 59 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.
cc: Chris Gulich, Financial Secretary-Treasurer