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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
Los Angeles District Office
915 Wilshire Boulevard, Suite 910
Los Angeles, CA 90017
(213) 534-6405 Fax: (213) 534-6413
May 5, 2011

Mr. Marvin Turner, President
United Food & Commercial Workers LU 350
250 E. Belmont Ave
Rialto, CA 92376

Case Number:
LM Number: 024395

Dear Mr. Turner:

This office has recently completed an audit of United Food & Commercial Workers LU 350
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 Treasurer Jo Telles on April 14, 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.

Record keeping 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 350’s Fiscal Year Ending 2010 records revealed the following recordkeeping
violation:


Mr. Marvin Turner
May 5, 2011
Page 2 of 2

General Disbursement Records

Local 350 did not retain adequate documents, such as vouchers and invoices for several
disbursements during the audit period. Specifically, a total of 13 checks were disbursed without
any supporting documents. 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.

Based on your assurance that Local 350 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 350 for the fiscal year ended
June 30, 2010, was deficient in the following area:

Failure to File Bylaws

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. Local 350 amended its constitution and bylaws in 2005, but did not file a
copy with its LM report for that year.

Local 350 has now filed a copy of its constitution and bylaws and agreed to file a copy of all
bylaw amendments approved by the local with OLMS during the fiscal year in which they are
enacted.

I want to extend my personal appreciation to United Food & Commercial Workers LU 350 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,

Supervisory Investigator

cc: Ms. Jo Telles, Treasurer