Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Office of Labor-Management Standards
Miami Resident Investigative Office
One East Broward Boulevard
Fort Lauderdale, FL 33301
(954)356-6850 Fax: (954)356-6852
March 8, 2010
Mr. Cornelius Vanderwyde, Secretary-Treasurer
Longshoremens Asn., AFL-CIO
1007 N. America Way # 407
Miami, FL 33132
LM File Number 064-055
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Dear Mr. Vanderwyde:
This office has recently completed an audit of Longshoremens 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 on March 4, 2010, 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.
Title II of the LMRDA establishes certain reporting and recordkeeping requirements. Section 206 requires, among other things, that labor organizations maintain adequate records for at least five years by which each receipt and disbursement of funds, as well as all account balances, can be verified, explained, and clarified. As a general rule, labor organizations must maintain all records used or received in the course of union business.
For disbursements, this includes not only original bills, invoices, receipts, vouchers, and applicable resolutions, but also documentation showing the nature of the union business requiring the disbursement, the goods or services received, and the identity of the recipient(s) of the goods or services. In most instances, this documentation requirement can be satisfied with a sufficiently descriptive expense receipt or invoice. If an expense receipt is not sufficiently descriptive, a union officer or employee should write a note on it providing the additional information. For money it receives, the labor organization must keep at least one record showing the date, amount, purpose, and source of that money. The labor organization must also retain bank records for all accounts.
The audit of Local 1922’s 2008 records revealed the following recordkeeping violation:
Local 1922 did not retain adequate documentation for expenses incurred by union officers and employees totaling at least $818.30. For example, there was one check payment for printing services; however, Local 1922 did not keep invoices or receipts to support that printing services were used for union business.
As previously noted above, labor organizations must retain original receipts, bills, and vouchers for all disbursements. The president and treasurer (or corresponding principal officers) of your union, who are required to sign your union’s LM report, are responsible for properly maintaining union records.
Based on your assurance that Local 1922 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above recordkeeping violations.
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 1922 for fiscal year ending December 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 1922 amended its constitution and bylaws on May 29, 2008, but did not file a copy with its LM report for that year.
Local 1922 has now filed a copy of its constitution and bylaws.
I want to extend my personal appreciation to 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.
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cc: Gerardo Becerra, President