Skip to page content
Office of Labor-Management Standards
Bookmark and Share

Office of Labor-Management Standards (OLMS)

U.S. Department of Labor
Office of Labor-Management Standards
Denver District Office
1999 Broadway, Suite 1150
Denver, CO 80202-5712
(720) 264-3232 Fax: (720) 264-3230
May 11, 2011

Mr. Patrick Schwarz, President
Bricklayers, Local 7
5201 E. 38th Avenue
Denver, CO 80201-1128

Case Number:

LM Number: 530865

Dear Mr. Schwarz:

This office has recently completed an audit of Bricklayers & Allied Craftworkers (BAC),
Local 7 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 Office Manager Denise
McKnight on May 6, 2011, 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.

Reporting 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-2) filed by Local 7 for the fiscal year ended
September 30, 2010, was deficient in the following areas:

1. Disbursements to Officers and Employees (LM-2)
BAC Local 7 did not include some payments to officers and employees totaling at least
$14,883 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

Mr. Patrick Schwarz
August 2, 2011
Page 2 of 2

union personnel for expenses not necessary for conducting union business.

I am not requiring that Local 7 file an amended LM report for 2010 to correct the deficient items,
but Local 7 has agreed to properly report the deficient items on all future reports it files with

I want to extend my personal appreciation to Bricklayers, Local 7 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.