Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Office of Labor-Management Standards
Cleveland District Office
1240 East 9th Street, Suite 831
Cleveland, OH 44199
(216) 357-5455 Fax: (216) 357-5425
September 23, 2010
Mr. Gary Sefcik, Business Manager
Plasterers and Cement Masons, LU 80
1417 East 25th Street
Cleveland, OH 44114
Case Number: ||||||||||||||||||||||||||||||
LM Number: 011125
Dear Mr. Sefcik:
This office has recently completed an audit of Plasterers and Cement Masons, LU 80 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 Attorney Susan Gragel on September 21, 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 80’s 2009 records revealed the following recordkeeping violations:
General Reimbursed and Credit Card Expenses
Local 80 did not retain adequate documentation for reimbursed expenses and credit card expenses incurred by Business Manager Sefcik totaling at least $2,702. For example, Sefcik had several charges on the union’s credit card for airfare, hotel and training for which there was no supporting documentation.
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 80 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.
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 80 amended its constitution and bylaws in 2005, but did not file a copy with its LM report for that year. During the Organizational Interview Questionnaire, Local 80 provided me with a copy of the current version of the union’s bylaws.
I want to extend my personal appreciation to Plasterers and Cement Masons Local Union 80 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: Attorney Susan Gragel