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

Office of Labor-Management Standards (OLMS)

U.S. Department of Labor Employment Standards Administration
Office of Labor-Management Standards
Seattle District Office
1111 Third Avenue
Suite 605
Seattle, WA 98101
(206) 398-8099 Fax:(206) 398-8090

December 31, 2007

Mr. Burke Stott, Treasurer
AFGE Local 1501
PO Box 4327
McChord AFB, WA 98438

LM File Number: 502-025 Case Number:

Dear Mr. Stott:

This office has recently completed an audit of AFGE Local 1501 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 on December 20,2007, the following problkms 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.

Recordkeeping Violations

Title II of the LMRDA establishes certain reporting and recordkeeping requirements. Section 206 of the LMRDA and Title 29 of the Code of Federal Regulations (C.F.R.) Section 403.7 require, among other thin s, that labor organizations maintain adequate records for at least five years after rep0 ts are filed by which the information on the reports can be verified, explained and c arified. Pursuant to 29 C.F.R. Section 458.3, this recordkeeping provision of the LMRD applies to labor organizations subject to the requirements of the Civil Service Reform Act of 1978 (CSRA) as well. Therefore, as a general rule, labor organization must retain all records used or received in the course of union business.

For disbursements, this includes not o$ 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 1501's 2006 records revealed the following recordkeeping violation:

General and Reimbursed Expenses

Local 1501 did not retain adequate documentation for 39 miscellaneous and reimbursed expenses totaling $7665. For example the following items did not have receipts or a union record to substantiate payment: shirts, conference registrations, flowers, hotel, payments, and reimbursements to officers and employees for office supplies, computers, pizza, and travel expenses.

As previously noted above, labor org nizations must retain original receipts, bills, and vouchers for all disbursements. The president and treasurer 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 1501 will retain adequate documentation in the future, OLMS will take no further enfor ement action at this time regarding the above violations.

Reporting Violation

Pursuant to 29 C.F.R., Section 458.3, the eporting requirement under 29 C.F.R. Section 403.2 (see Section 201(b) of the Labor-M 1 nagement 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 condit'on and operations. The audit disclosed a violation of this requirement. The Labo $ Organization Annual Report (Form LM-3) filed by Local 1501 for fiscal year ending December 31,2006, was deficient in that Local 1501 failed to file its most recent bylaws.

Failure to File Bylaws

Pursuant to 29 C.F.R. Section 458.3, the iequirement under 29 C.F.R. Section 402.4 implementing LMRDA Section 201(a) i$ made applicable to labor organizations subject to the requirements of the CSRA. This rovision requires labor organizations to file copies of any revised constitution and when it files its annual financial report. The audit disclosed a violation of this Local 1501 amended its constitution and bylaws in 2004, but did not file with its LM report for that year. Local 1501 has now provided the constitution and bylaws to OLMS.

I want to extend my personal to AFGE Local 1501 for the cooperation and courtesy extended during audit. I strongly recommend that you make sure this letter and the materials provided to you are passed on to future officers. If assistance, please do not hesitate to call.

Supervisory Investigator,
cc: Mr. David Duncan, President