Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Los Angeles District Office
915 Wilshire Boulevard
Los Angeles, CA 90017
(213) 534-6405 Fax:(213) 534-6413
January 17, 2008
Ms. Nancy Meyer, Secretary-Treasurer
Letter Carriers, NATL ASN, AFL-CIO, Branch 2200
1310 N. Oxford Ave.
Pasadena, CA 91104-3140
LM File Number: 513-826
Case Number: ||||||||||
Dear Ms. Meyer:
This office has recently completed an audit of Letter Carriers, NATL ASN, AFL-CIO, Branch 2200 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, President Leroy Collier and Vice President Robert Burskey on January 2, 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.
The audit disclosed:
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, and source of that money. The labor organization must also retain bank records for all accounts.
The audit of branch 2200’s 2007 records revealed the following recordkeeping violations:
1. General Reimbursed and Credit Card Expenses
Branch 2200 did not retain adequate documentation for reimbursed expenses and credit card expenses incurred by President Leroy and Secretary-Treasurer Nancy Meyer totaling at least $170. For example, credit card expenses for you and Leroy Collier in April 2006 totaling $1,768.09 lacked adequate documentation or authorization for $95.56 of that total.
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. Failure to Record Receipts
Branch 2200 did not record in its receipts records certain checks and cash received from rebates, raffle sales, and picnic ticket sales totaling at least $2,576. For example, in July 2006, Branch 2200 deposited $2,415 from picnic ticket sales, but the money was not recorded in the union’s financial receipts record. Union receipts records must include an adequate identification of all money the union receives. The records should show the date and amount received, and the source of the money.
Based on your assurance that Branch 2200 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.
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-2, filed by Local Branch 2200 for fiscal year ending March, 31, 2007, was deficient as follows:
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. Branch 2200 amended its constitution and bylaws in 2004, but had not filed the amended copy until it was requested during this audit.
Branch 2200 has now filed a copy of its constitution and bylaws.
I want to extend my personal appreciation to Letter Carriers, NATL ASN, AFL-CIO, Branch 2200 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.
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Acting District Director
cc: Mr. Leroy Collier, President