Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Office of Labor-Management Standards
90 7th Street, Suite 18-100
San Francisco, CA 94103
(415) 625-2661 Fax: (415) 625-2662
March 3, 2010
Kevin Wilson, President
Communications Workers AFL-CIO
240 2nd Street
San Francisco, CA 94105
LM File Number: 041-936
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Dear Mr. Wilson:
This office has recently completed an audit of Local 59051 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 and Secretary Treasurer Djovida on March 2, 2010, 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, and source of that money. The labor organization must also retain bank records for all accounts.
The audit of Local 59051’s 2009 records revealed the following recordkeeping violation:
General Reimbursed and Debit Card Expenses
Local 59051 did not retain adequate documentation for reimbursed expenses and debit card expenses incurred by union officers totaling at least $5,000. For example, although out of town charges on the Visa debit card were generally supported by receipts, there were few receipts for local area purchases.
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.
Based on your assurance that Local 59051 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.
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. Local 59051 amended its constitution and bylaws in 2009, but did not file a copy with its LM report for that year. Local 59051 has now filed a copy of its constitution and bylaws.
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 59051’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 Local 59051 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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cc: Djovida, Secretary-Treasurer