Office of Labor-Management Standards (OLMS)
U.S. Department of Labor Employment Standards Administration
Office of Labor-Management Standards
San Francisco District Office
90 7th Street
Suite 18-1 00
San Francisco, CA 94103
(415) 625-2661 Fax:(415) 625-2662
December 12, 2008
Mr. Samuel Robinson, Secretary-Treasurer
Hod Carriers Local 166
8400 Enterprise Way, Room 109
Oakland, CA 94621
LM File Number: 039-059
Case Number: -
Dear Mr. Robinson:
This office has recently completed an audit of Hod Carriers Local 166 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 Ruby Hill, Tabette Hill, = & and you on December 9,2008, 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 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, andsource of that money. The labor organization must also retain bank records for all accounts.
The audit of Local 166's 2007 records revealed the following recordkeeping violations:
1. General Expenses
Local 266 did not retain adequate documentation for expenses incurred by
Samuel Robinson totaling approximately $250.00 for a Costco purchase in June
2007 and a car rental during the 2007 African American Caucus. As previously 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.
2. Union Owned Vehicles
The union did not maintain records necessary to report information in Schedule 11 (All Officers and Disbursements to Officers) of the LM-2. Local 166 incurred expenses for automobiles during 2007. However, Local 166 did not maintain records documenting business versus personal use of the union vehicles. The LM-2 instructions include specific rules for the reporting of automobile expenses. The union must report operating and maintenance costs for each of its owned vehicles in Schedules 11 and 12 of the LM-2, allocated to the officer or employee to whom each vehicle is assigned. For each trip they take using a union owned vehicle, officers and employees must maintain mileage logs that show the date, number of miles driven, whether the trip was business or personal, and, if business, the purpose of the trip. Based on your assurance that Local 166 will retain adequate documentation in the future, OLMS will take no further action at this time regarding the above violations.
the audit disclosed violations 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-2, filed by Local 166 for fiscal year ending December 31,2007, was deficient in the following areas:
1. Disbursements to Officers and Employees
Local 166 did not include any reimbursements to officers or employees totaling
at least $10,000.00 in Schedule 11 (All Officers and Disbursements to Officers)
and Schedule 12 (Disbursements to Employees). It appears that the local erroneously reported these payments in Schedules 15 through 19. The union must report in Column F of Schedules 11 and 12 (Disbursements for Official Business) direct disbursements to officers and employees for reimbursement of expenses they incurred while conducting union business. In addition, the union must report in Column F of Schedules 11 and 12 indirect disbursements made to another party (such as a credit card company) for business expenses union personnel incur. However, the union must report in Schedules 15 through 19 indirect disbursements for business expenses union personnel incur for transportation by public carrier (such as an airline) and for temporary lodging expenses while traveling on union business. The union must
report in Column G (Other Disbursements) of Schedules 11 and 12 any direct or indirect disbursements to union personnel for expenses not necessary for
conducting union business.
2. Automobile Expenses
Local 166 did not include in the amounts reported in Schedule 11 (All Officers
and Disbursements to Officers) and Schedule 12 (Disbursements to Employees)
disbursements for the operation and maintenance of union automobiles. The LM-2 instructions provide two methods for reporting automobile-related
expenses. The union must report in Schedules 11 and 12 direct and indirect disbursements for the operation and maintenance of union owned and leased
vehicles and the operation and maintenance of vehicles owned by union personnel (including gasoline, repairs, and insurance). The union may divide the
expenses and report them in Columns F and G based on miles driven for union business (supported by mileage logs) compared with miles driven for personal
Alternatively, rather than allocating the expenses between Columns F and G, if
50 percent or more of an officer's or an employee's use of a vehicle was for
official business, the union may report all of the expenses relative to the vehicle assigned to the officer or employee in Column F of Schedule 11 or 12 with an
explanation in Item 69 (Additional Information) that the officer or employee used the vehicle part of the time for personal business. Similarly, if a vehicle assigned
to an officer or employee was used less than 50 percent of the time for business, all of the expenses relative to that vehicle may be reported in Column G with an
explanation in Item 69 that the officer or employee used the vehicle partly for official business.
Local 166 must file an amended Form LM-2 for fiscal year ending December 31,2007, to
correct the deficient items discussed above. I explained to you the filing procedures
and the availability of filing software on the OLMS website (www.olms.dol.g;ov). The
amended Form LM-2 must be electronically filed as soon as possible, but not later than
January 15,2009. Before filing, review the report thoroughly to be sure it is complete
and accurate, and properly signed with electronic signatures.
I want to extend my personal appreciation to Hod Carriers Local 166 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. Rocco Davis, Regional Manager
Mr. Jose Moreno, Business Manager