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Office of Labor-Management Standards
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Office of Labor-Management Standards (OLMS)

U.S. Department of Labor
Office of Labor-Management Standards
Buffalo District Office
130 South Elmwood Avenue, Suite 510
Buffalo, NY 14202
(716) 842-2900 Fax: (716) 842-2901
April 13, 2011

Ms. Julie Galley, Secretary-Treasurer
Communication Workers of America, AFL-CIO
Local 1133
821 Elk Street, #A
Buffalo, NY 14210

Case Number:
LM Number: 529191

Dear Ms. Galley:

This office has recently completed an audit of Communication Workers, Local 1133 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, President Margaret Chadwick, Vice President
Karen Enright and Executive Board Member Vanessa Quinn on March 31, 2011, 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.

Recordkeeping Violations

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 1133’s 2010 records revealed the following recordkeeping violations:


Ms. Julie Galley
April 13, 2011
Page 2 of 3

1. General Reimbursed and Credit Card Expenses
Local 1133 did not retain adequate documentation for reimbursed expenses and credit card
expenses incurred by President Peggy Chadwick and Vice President Karen Enright totaling
at least $750. For example, President Chadwick did not submit hotel bills for a trip to
Washington D.C. for attendance to a conference for two rooms. Only one bill was
submitted. Further, Vice President Enright did not provide a receipt for a purchase at Big
Lots for office supplies.

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.

2. Meal Expenses
Local 1133 did not require officers and employees to submit itemized receipts for meal
expenses totaling at least $250. The union must maintain itemized receipts provided by
restaurants to officers and employees. These itemized receipts are necessary to determine
if such disbursements are for union business purposes and to sufficiently fulfill the
recordkeeping requirement of LMRDA Section 206.

Local 1133 records of meal expenses did not always include written explanations of union
business conducted or the names and titles of the persons incurring the restaurant charges.
For example, on a couple of occasions in October 2009, restaurant charges paid for by the
local did not provide an itemized receipt that identified who was present and the purpose of
meeting. Union records of meal expenses must include written explanations of the union
business conducted and the full names and titles of all persons who incurred the restaurant
charges. Also, the records retained must identify the names of the restaurants where the
officers or employees incurred meal expenses.

3. Reimbursed Auto Expenses
Several officers received reimbursement for business use of their personal vehicles did not
retain adequate documentation to support payments to them during 2010. The union must
maintain records which identify the dates of travel, locations traveled to and from, and
number of miles driven. The record must also show the business purpose of each use of a
personal vehicle for business travel by an officer or employee who was reimbursed for
mileage expenses.

Based on your assurance that Local 1133 will retain adequate documentation in the future,
OLMS will take no further enforcement action at this time regarding the above violations.


Ms. Julie Galley
April 13, 2011
Page 3 of 3

Reporting 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 1133 for fiscal year ending
September 30, 2010, was deficient in the following area:

Disposal of Property

Item 15 (During the reporting period did your organization acquire or dispose of any assets in
any manner other than by purchase or sale?) should have been answered, "Yes," because the
union gave away T-shirts and gift cards to the stewards for Christmas. In the March 24, 2010
membership meeting minutes it was noted that T-shirts had been raffled, but does not identify
how many shirts or the value of the shirts. Also, there was approval to present the stewards with
gift cards to a local grocery story for Christmas, but it was unclear if that occurred.

The union must identify the type and value of any property received or given away in the
additional information section of the LM report along with the identity of the recipient(s) or
donor(s) of such property. The union does not have to itemize every recipient of such giveaways
by name. The union can describe the recipients by broad categories if appropriate such as
“members” or “new retirees.”

I want to extend my personal appreciation to CWA, Local 1133 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,

Investigator

cc:
Ms. Margaret Chadwick, President
Ms. Karen Enright, Vice President
Ms. Vanessa Quinn, Executive Board Member