U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Denver District Office
1999 Broadway, Suite 2435
Denver, CO 80202-5712
(720) 264-3232 Fax:(720) 264-3230
March 24, 2009
Mr. David Barber, Financial Secretary
Carpenters Local 1319
1021 Cardenas Dr. NE
Albuquerque, NM 87110
LM File Number: 035-892
Case Number: ||||||||||
Dear Mr. Barber:
This office has recently completed an audit of Carpenters Local 1319 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 March 19, 2009, 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 the following:
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 Carpenters Local 1319 records revealed the following recordkeeping violation:
Disbursements – Inadequate Documentation
The union did not keep a copy of a letter requesting $2,000 for purchase of items for packages for U.S. troops in Iraq. The approval for disbursing the $2,000 did not appear in the meeting minutes. Other than a picture of the packages prior to mailing, there was no documentation of items purchased for inclusion in the packages.
As previously noted above, labor organizations must retain original receipts, bills, and vouchers for all disbursements. The union is also responsible for accurate entries in its books and records. 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.
Based on your assurance that Local 1319 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violation.
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-3) filed by Local 1319 for fiscal year ending June 30, 2007, was deficient in the following area:
LM Report – Question 13
Local 1319 answered “No” to question 13 which asks “During the reporting period did the labor organization discover any loss or shortage of funds or other assets?” Local 1319 experienced a break-in and robbery of cash in December of 2006. Question 13 should have been answered “Yes,” and the details of the loss should have been disclosed in Item 69 “Additional Information Summary.”
I am not requiring that Local 1319 file an amended LM report for 2007 to correct the deficient item, but as agreed, if Local 1319 experiences such a loss again, it will properly report the loss on future reports it files with this agency.
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.
The audit revealed that Local 1319’s officers and employees were not bonded for the minimum amount required at the time of the audit. However, the union obtained adequate bonding coverage and provided evidence of this to OLMS during the audit. As a result, OLMS will take no further enforcement action regarding this issue.
I want to extend my personal appreciation to Carpenters Local 1319 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. Roberto Garcia, President