Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Office of Labor-Management Standards
Seattle District Office
300 5th Avenue, Suite 1290
Seattle, WA 98104-3308
(206) 398-8099 Fax: (206) 398-8090
September 30, 2013
Mr. Eduardo Pacheco, Vice President
1305 Knight Street
Richland, WA 99352
Case Number: 540-08756
LM Number: 025450
Dear Mr. Pacheco:
This office has recently completed an audit of Guards, IND 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 August 30, 2013, 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.
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. Guards, IND, amended its constitution and bylaws in 2007, but did not file a copy with its LM report for that year. Guards, IND has now filed a copy of its constitution and bylaws.
The audit disclosed the following other violation:
The audit revealed a violation of LMRDA Section 502 (Bonding), which requires that union officers and employees be bonded for no less than 10 percent of the total funds those individuals or their predecessors handled during the preceding fiscal year.
Guards, IND’s officers and employees are currently not bonded, but they must be bonded for at least $2,330.65. Guards, IND should obtain adequate bonding coverage for its officers and employees immediately. Please provide proof of bonding coverage to this office as soon as possible, but not later than November 15, 2013.
I want to extend my personal appreciation to Guards, IND 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.
cc: Mr. Charles Nelson, Treasurer