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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
Boston District Office
JFK Federal Building, Suite E-365
Boston, MA 02203
(617) 624-6690 Fax: (617) 624-6606






August 8, 2011



Mr. John Lopes, President
International Longshoremen's Association AFL-CIO Local 1329
393 Broad Street, Room 101
Providence, RI 02907-1354
Case Number: | | | | | | | | | | | |
LM Number: 018046


Dear Mr. Lopes:

This office has recently completed an audit of the International Longshoremen's Association AFL-CIO Local 1329 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, Treasurer Marshall Bento, and Recording Secretary Orlondo Valles, on August 3, 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 1329’s 2009 records revealed the following recordkeeping violations:


1. Lack of Salary Authorization

Local 1329 did not maintain records to verify that the salaries reported in Item 24 (All Officer and Disbursements to Officers) of the LM-3 were the authorized amount and therefore were correctly reported. The union must keep a record, such as meeting minutes, to show the current salary authorized by the entity or individual in the union with the authority to establish salaries.

2. Information not Recorded in Meeting Minutes

Article X Section 2 of Local 1329’s Constitution requires that compensation of allowances paid to officers be authorized by the union’s membership. However, no membership meeting minutes were provided that show authorization of the weekly $200 expense allowance paid to the union’s president. Minutes of all membership or executive board meetings must report any disbursement authorizations made at those meetings and must be retained in union records for as long as that authorization is in effect.

Based on your assurance that Local 1329 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.

Reporting Violations

1. Failure to File Bylaws

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 (LM-3) filed by Local 1329 for the fiscal year ended 12/31/07, was deficient in that the local failed to provide a copy of its updated bylaws as an attachment to the LM-3 report.

OLMS will take no further enforcement action at this time because Local 1329 has now filed a copy of its constitution and bylaws.

Other Issues

1. Annual Audits

Article VII Section 6 of the ILA Local 1329 Constitution states that an annual audit of the Local 1329 books and records will be conducted by a C.P.A. and a written report thereon will be submitted to the Treasurer, who will give the report to the membership at a regular meeting. During the opening interview, Mr. Bento informed OLMS that an audit has not been conducted at Local 1329 since 2007.

2. Monthly Meetings

Article VI Section 1 of the ILA Local 1329 Constitution states that the regular meetings of the local shall be held on the second Tuesday of each month. Meeting minutes provided for 2009 show that only three membership meetings were held during that year.

I want to extend my personal appreciation to ILA Local 1329 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. Marshall Bento, Treasurer