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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
Denver District Office
1999 Broadway, Suite 1150
Denver, CO 80202-5712
(720) 264-3232 Fax: (720) 264-3230
July 20, 2011

Mr. Brian Meyer, Treasurer
Security Police and Fire Professionals, Ind., Local

P.O. Box 632251
Littleton, CO 80163-2251

Case Number:
265 LM Number: 065120


Dear Mr. Meyer:

This office has recently completed an audit of Security Police and Fire Professionals, Local 265
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 President Fernando Elizalde on July 19, 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 265’s 2011 records revealed the following recordkeeping violations:

1. General Reimbursed and Credit Card Expenses
Local 265 did not retain adequate documentation for reimbursed expenses and credit card
expenses incurred by totaling at least $837. For example, the union paid
$837 to attend the International SPFPA Convention in Las Vegas, but no
supporting documentation was found in records for ’s travel expenses.


Mr. Brian Meyer
August 2, 2011
Page 2 of 3

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. Failure to Record Receipts
Local 265 did not record in its receipts records an employer dues check off check for $40
during the audit period, and at least $6,099 in dues receipts during fiscal years 2008 and
2009. Local 265 made duplicate entries in its receipts records totaling $4,110 during
2008. The union also entered a “miscellaneous balance adjustment” entry in records for a
receipt totaling $1,349 during the audit period. Union receipts records must include an
adequate identification of all money the union receives. The records should show the
date and amount received, and the source of the money.

3. Information not Recorded in Meeting Minutes
Local 265 has never held membership meetings. Therefore, members have never
approved union expenses or been provided with monthly financial reports or meeting
minutes. Article XXVII, Section 5 of the International SPFPA Constitution and By-Laws
dated May 10, 2010 requires the local union treasurer to provide members with a written
report of all monies received and paid out during the prior calendar month, and report in
the minutes, any disbursement authorizations made at membership or executive board
meetings.

The union has agreed to maintain adequate records, to record all receipts on the date that
funds are received, and to conduct regular membership meetings.

The proper maintenance of union records is the personal responsibility of the individuals who are
required to file Local 265's LM report. You should be aware that under the provisions of
Section 209(a) of the LMRDA and Section 3571 of Title 18 of the U.S. Code, willful failure to
maintain records can result in a fine of up to $100,000 or imprisonment for not more than one
year, or both. Under the provisions of Section 209(c) of the LMRDA and Section 3571 of
Title 18 of the U.S. Code, willful destruction or falsification of records can result in a fine of up
to $100,000 or imprisonment for not more than one year, or both. The penalties provided in
Section 209(c) and Section 3571 of Title 18 apply to any person who caused the violations, not
just the individuals who are responsible for filing the union’s LM report.

Reporting Violation


Mr. Brian Meyer
August 2, 2011
Page 3 of 3

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 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. The Labor Organization Annual Report (Form LM-3) filed by Local 265
for the fiscal year ended March 31, 2011, was deficient in that Local 265 amended its
constitution and bylaws in 2002, but did not file a copy with its LM report for that year.

Local 265 has now filed a copy of its constitution and bylaws.

I want to extend my personal appreciation to Security Police and Fire Professionals, Local 265
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. Fernando Elizalde, President