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Office of Labor-Management Standards (OLMS)

U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
St. Louis District Office
1222 Spruce Street
Room 9 109 E
St. Louis, MO 63103
(314)539-2667 Fax: (314)539-2626

January 31, 2007

Ms. Carolyn McElvaine,Treasurer
AFGE Local 104
9700 Page
Room 2515
Overland, MO 63132-1547

Re: Case Number

Dear Ms. McElvaine:

This office has recently completed an audit of AFGE Local 104 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 January 19, 2007, 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.

The CAP disclosed a violation of LMRDA Sec organizations to file annual financial reports a condition and operations. The Labor Organization filed by AFGE Local 104 for fiscal year ending in the following areas:

  • Item 24 - All Officers and Disbursements - The names of some officers were not reported in Item 24. All persons who held office during the year must be reported in Item 24 regardless of whether or not they received any payments from the union.
  • Item 25 (a)(b) - Beginning and Ending cash were not accurate.
  • Item 38 - Dues Receipts total did not appear accurate. Lunch & Learn refunds from AFGE National should not be included in Dues Receipts, but rather in Item 44 - Other Receipts.

I am not requiring that AFGE Local 104 file an amended LM report for 2005 to correct the deficient items, but as agreed, AFGE Local 104 will properly report the deficient items on all future reports file with this agency.

The CAP disclosed a violation of LMRDA Section 206, which require, among other things, that adequate records be maintained for at least 5 years by which each receipt and disbursement of funds, as well as all account balances, can be verified, explained, and clarified. The audit of AFGE Local 104 record revealed the following recordkeeping violations:

  • Minutes for membership and executive board meetings were not retained. These records are required to be maintained for at least 5 years for verification of authorized expenditures.
  • No receipts for the individual member payer who does not pay dues by dues by automatic deduction.
  • No Receipts/ Disbursements Ledger for disbursements.
  • Stubs for dues checks received from AFGE National were not retained for the entire audit year period.
  • Back-up documentation was not maintained for all disbursements during the audit year period. In total, 16 disbursements did not have accurate or sufficient back-up documentation.

As agreed, provided that AFGE Local 104 maintains adequate documentation as discussed above in the future, no additional enforcement action will be taken regarding this violation.

Finally, the CAP revealed a violation of LMRDA Section 502, which requires that union officers and employees be bonded for no less than 10 percent of the total funds handled by those in by those individuals or their predecessors during the preceding fiscal year. AFGE Local 104 officers and employees are currently bond for at least $9,691.

Please obtain sufficient bonding coverage and bonding coverage to my attention.

I want to extend my personal appreciation to 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