U.S. Department of Labor
Office of Labor-Management Standards
Nashville District Office
233 Cumberland Bend Drive, Suite 110
Nashville, TN 37228
(615) 736-5906 Fax: (615) 736-7148
January 30, 2013
Mr. Kevin Adkisson, President
Building & Construction Trades Dept. AFL-CIO
Tennessee State Council
10412 Lexington Drive
Knoxville, TN 37932
Case Number: 430-10523()
LM Number: 544290
Dear Mr. Adkisson:
This office has recently completed an audit of Building & Construction Trades Dept. AFL-CIO 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 Former Treasurer and you on January 28, 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.
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-4) was deficient in that:
Failure to File Annual Financial Reports
The audit disclosed a violation of LMRDA Section 201(b), which requires labor organizations to file annual financial reports with the Secretary of Labor. The council failed to file annual financial reports for fiscal years ending June 30, 2011 and June 30, 2012.
The council has now filed the required annual financial reports.
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.
Building & Construction Trades AFL-CIO Tennessee State Council’s officers and employees are currently not bonded, but they must be bonded for at least $1,163.18. The council 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 March 1, 2013.
I want to extend my personal appreciation to Building & Construction Trades Dept. AFL-CIO Tennessee State Council 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.