Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Chicago District Office
230 South Dearborn Street
Room 774, Federal Office Building
Chicago, Il 60604
(312)596-7160 Fax: (312)596-7174
June 15, 2007
Mr. Philip Orlando, Treasurer
Letter Carriers, Natl Asn, AFL-CIO
1070 Calumet Road
Chesteron, IN 46304-3225
Re: Case Number
LM File Number 080-155
Dear Mr. Orlando:
This office has recently completed an audit of Letter Carriers Branch 4800 under the Comp] lance Audit Program (CAP) to determine your organization's compliance with the pro visions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRI3 A). As discussed during the exit interview with you and President Tim Callaway on June 12, 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.
Title II of the LMRDA establishes certain reporting and recordkeeping requirements. Section 206 requires, among other things, that labor organizations maintain adequate recorded for at least five years by which each receipt and disbursement of funds, as well as all amount balances, can be verified, explained, and clarified. As a general rule, labor organ r4tions 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 f that money. The labor organization must also retain bank records for all accounts.
The audit of Branch 4800's records revealed the following recordkeeping violation:
Conference and Travel-Related Expenses
Branch 4800 did not have adequate documentation to explain and verify reimbursement for expenses totaling $1266.81 relating to conferences and travel, particularly for and per diem. The Branch retained cancelled checks for travel reimbursement minutes would often mention a particular conference but there was no station outlining specific registration fees, names of conference attendees or travelers, dates of travel, and approved expenses such as the number of miles claimed and amount paid per mile, the number of days of per diem claimed and amount paid and associated lodging charges.
Based on your assurance that Branch 4800 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violation.
I want extend my personal appreciation to Letter Carriers Branch 4800 for the Carriers Branch 4800 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 assistance, please do not hesitate to call.
cc: Tim Callaway, President