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U.S. Department of Labor

Employment Standards Administration
Office of Labor-Management Standards
Atlanta District Office
61 Forsyth Street, SW
Room 8B85
Atlanta, GA 30303
(404)562-2083 Fax: (404)562-2087

 

February 13, 2009

Mr Mark DeUnger, President
AFGE AFL-CIO
Local 1922
P.O. Box 3212
Fort Stewart, GA 31314

LM File Number 501-428
Case Number: ||||||||||

Dear Mr DeUnger:

This office has recently completed an audit of AFGE Local 1922 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, and Gina Ditzler on February 6, 2009, 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 CAP disclosed the following violations:

Reporting Violations

The CAP 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 1922 for fiscal year ending December 31, 2007, was deficient in the following area:

Local 1922 failed to include some reimbursements to officers and employees in Item 24 (All Officers and Disbursements to Officers).

All direct disbursements to Local 1922 officers and some indirect disbursements made on behalf of its officers must be reported 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. An "indirect disbursement" to an officer is a payment to another party (including credit card companies) 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).

I am not requiring that Local 1922 file an amended LM report for 2007 to correct the deficient items, but as agreed, Local 1922 will properly report the deficient items on all future reports filed with this agency.

The audit also revealed a violation of LMRDA 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 1922’s officers and employees are currently bonded for $17,500 but they must be bonded for at least $20,400.

Local 1922 should obtain adequate bonding coverage for its officers and employees immediately. Please provide proof of bonding coverage to this office as soon as adequate coverage has been obtained, but not later than March 20, 2009.

I want to extend my personal appreciation to AFGE Local 1922 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,

|||| Wright
Investigator

Cc: JoAnna Greer, Secretary/Treasurer