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Office of Labor-Management Standards (OLMS)


U.S. Department of Labor

Office of Labor-Management Standards
Dallas Office
A. Maceo Smith Fed. Bldg.
525 Griffin Street, Suite 300
Dallas, TX 75202
(972) 850-2500 Fax: (972) 850-2501





March 3, 2016



Ms. Debra Rollins, Treasurer
AFGE Local 2571
701 Clay Avenue
Waco, TX 76799
Case Number: 420-6006485
LM Number: 501775


Dear Ms. Rollins:

This office has recently completed an audit of AFGE Local 2571 under the Compliance Audit Program (CAP) to determine your organization’s compliance with the provisions of the Civil Service Reform Act of 1978 (CSRA), 5 U.S.C. 7120, and the Department's regulations, 29 CFR 458. As discussed during the exit interview with you and AFGE Local 2571 President Ofelia Weaver on March 3, 2016, 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 Violations

Pursuant to 29 C.F.R., Section 458.3, the reporting requirement under 29 C.F.R. Section 403.2 (see Section 201(b) of the Labor-Management Reporting and Disclosure Act (LMRDA)) is made applicable to labor organizations subject to the requirements of the CSRA. This provision requires labor organizations to file annual financial reports that accurately disclose their financial condition and operations. The audit disclosed a violation of this requirement. The Labor Organization Annual Report (Form LM-3) filed by Local 2571 for the fiscal year ended December 31, 2014, was deficient in the following areas:

1. Certificates of Deposit


Local 2571 failed to report the value of its certificate of deposit ($8,092) on line item 25A. For LM reporting purposes, OLMS considers a certificate of deposit to be cash and it should be reported as cash at the start of the reporting period.

2. Failure to File Bylaws


Pursuant to 29 C.F.R. Section 458.3, the requirement under 29 C.F.R. Section 402.4 implementing LMRDA Section 201(a) is made applicable to labor organizations subject to the requirements of the CSRA. This provision requires labor organizations to file copies of any revised constitution and bylaws when it files its annual financial report. The audit disclosed a violation of this requirement. Local 2571 amended its constitution and bylaws in 1998, but did not file the required copies with its LM report for that year.

In as much as Local 2571 has submitted an acceptable amended LM-3 Report and a copy of its most current constitution and bylaws, OLMS will take no further enforcement action regarding these issues.

I want to extend my personal appreciation to AFGE Local 2571 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.

Sincerely,




Investigator


cc: Ms. Ofelia Weaver, President