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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
Cleveland District Office
1240 East 9th Street, Suite 831
Cleveland, OH 44199
(216) 357-5455 Fax: (216) 357-5425

April 26, 2011

Mr. Michael Moncini, Treasurer
United Government Security Officers of America Local 56
PO Box 314
12016 Lake Road
Vermillion, OH 44089

Case Number:
LM Number: 540130

Dear Mr. Moncini:

This office has recently completed an audit of United Government Security Officers of America
Local 56 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 April 15, 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 56’s 2010 records revealed the following recordkeeping violations:

1. General Reimbursed Expenses

Mr. Michael Moncini
April 26, 2011
Page 2 of 3

Local 56 did not retain adequate documentation for reimbursed expenses incurred by
President Joseph Musil totaling at least $500.00. For example, several checks were
issued to Musil which indicated the purpose of the check being for travel and tolls.
However, either no documentation was retained or if retained, the voucher said only
“travel” with no further explanation.

As 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. Lost Wages
Local 56 did not retain adequate documentation for lost wage reimbursement payments to
President Joseph Musil and Treasurer Michael Moncini totaling at least $500.00. The
union must maintain records in support of lost wage claims that identify each date lost
wages were incurred, the number of hours lost on each date, the applicable rate of pay,
and a description of the union business conducted. The OLMS audit found that Local 56
either maintained no documentation or if a voucher was maintained, the description
provided said only “lost time” with no further explanation.

During the exit interview, I provided a compliance tip sheet, Union Lost Time Payments,
that contained a sample of an expense voucher Local 56 may use to satisfy this
requirement. The sample identifies the type of information and documentation that the
local must maintain for lost wages and other officer expenses.

Based on your assurance that Local 56 will retain adequate documentation in the future, OLMS
will take no further enforcement action at this time regarding the above violations.

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-3) filed by Local 56 for the fiscal year ended
December 31, 2010, was deficient in the following areas:

1.
Local 56 did not include some reimbursements to officers totaling at least $2,000.00 in
the amounts reported Item 24 (All Officers and Disbursements to Officers). It appears
the union erroneously reported these payments in Item 54 (Other Disbursements).
In addition, Local 56 did not report the names of some officers and the total amounts of
payments to them or on their behalf in Item 24 (All Officers and Disbursements to
Officers). The union must report in Item 24 all persons who held office during the year,
regardless of whether they received any payments from the union.


Mr. Michael Moncini
April 26, 2011
Page 3 of 3

The union must report most direct disbursements to Local 56 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. Local 56 failed to report in Item 43 (Other Receipts) the repayment of a travel advance by
former Local 56 President Robert Delk in the amount of $1,815.00. It appears the union
erroneously reported this payment in Item 38 (Dues).

Local 56 must file an amended Form LM-3 for the fiscal year ended December 31, 2010, to
correct the deficient items discussed above.
and advised you that the reporting forms and instructions are available on the OLMS website
I provided you with a blank form and instructions,
(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 April 30, 2011. 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 United Government Security Officers of America
Local 56 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: Mr. Joseph Musil, President