U.S. Department of Labor
Office of Labor-Management Standards
Boston District Office
Room E365
JFK Federal Building
Boston, MA 02203
(617) 624-6690 Fax:(617) 624-6606
May 18, 2011
Mr. William Miller, President
Longshoremens Local 800
496 Summer Street
Boston, MA 02210
LM File Number: 019-801
Case Number:
Dear Mr. Miller:
This office has recently completed an audit of Longshoremens Local 800 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 Business Agent George McEvoy
and Treasurer Michael McEvoy on May 13, 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
Mr. William Miller
May 13, 2011
Page 2 of 4
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 Longshoremens Local 800’s 2009 records revealed the following
recordkeeping violations:
1. Expenses (General and Reimbursed)
Local 800 did not retain adequate documentation for expenses incurred by the local
totaling at least $2,654.95. For example, the local did not retain an invoice from
Murphy Financial for $2,100.
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. Lost Wages
Local 800 did not retain adequate documentation for lost wage reimbursement
payments to union officers totaling at least $6,265. 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 800 did not
use/require lost time vouchers.
During the exit interview, I provided a compliance tip sheet, Union Lost Time
Payments, and a sample of an expense voucher Local 800 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 800 will retain adequate documentation in the
future, OLMS will take no further enforcement action at this time regarding the above
violations.
Mr. William Miller
May 13, 2011
Page 3 of 4
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 LM-3 filed by Local
800 for fiscal year ending December 31, 2009, was deficient in the following areas:
1. Disbursements To Officers
Local 800 did not report reimbursements to officers totaling at least $258.81 in Item
24 (All Officers and Disbursements to Officers). It appears the local erroneously
reported these payments in Item 48 (Office and Administrative Expense), Item 51
(Contributions, Gifts & Grants), and Item 54 (Other Disbursements). The local also
did not report lost time payments to the president, treasurer, and recording
secretary totalling $6,265 as salary in Item 24 D (Gross Salary). It appears the lost
time payments were reported in Item 24 E (Allowances and Other Disbursements).
Local 800 reported the name of the business agent and an executive board member
and the total amount of payments to them or on their behalf in Item 24 (All Officers
and Disbursements to Officers). These individuals are elected employees and not
elected officers . Their disbursements should have been reported in Item 46 “To
Employees.”
The union must report most direct disbursements to Local 800 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).
Mr. William Miller
May 13, 2011
Page 4 of 4
December 31, 2009 to correct the deficient items discussed above. The amended LM-3
should be submitted to this office at the above address as soon as possible, but not later
than June 14, 2011. Before filing, review the report thoroughly to be sure it is complete,
accurate, and signed properly with original signatures.
2.
Cash Reconciliation
The cash figures reported in Item 25 are not the cash figures according to the union’s
books after reconciliation to the bank statements. The instructions for Item 25 state
that the union should obtain account balances from its books as reconciled to the
balances shown on bank statements.
Longshoremens Local 800 must file an amended Form LM-3 for fiscal year ending
I want to extend my personal appreciation to Longshoremens Local 800 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:
Michael McEvoy, Treasurer
George McEvoy, Business Agent