Office of Labor-Management Standards (OLMS)
U.S. Department of Labor Employment Standards Administration
Office of Labor-Management Standards
Nashville District Office
P.O. Box 79255
Charlotte, NC 28277
Robert Krebs, Business Manager
IBEW Local 379
4200 Morehead Road
Concord, NC 28027
LM File Number 020685 Case Number---
Dear Mr. Krebs:
This office has recently completed an audit of 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, President Thrower and Treasurer Fried on September 12,2007, 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 I1 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 things, that labor organizations maintain adequate records for at least five years after reports are filed by which the information on the reports can be verified, explained and clarified. Pursuant to 29 C.F.R. Section 458.3, this recordkeeping provision of the LMRDA 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 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 379's 2006 records revealed the following recordkeeping violations:
1. Union OwnedILeased Vehicles
The LM-2 instructions include specific rules for the reporting of automobile expenses. The union must report operating and maintenance costs for each of its owned or leased vehicles in Schedules 11 and 12 of the LM-2, allocated to the officer or employee to whom each vehicle is assigned. For each trip they take using a union owned or leased vehicle, officers and employees must maintain mileage logs that show the date, number of miles driven, whether the trip was business or personal, and, if business, the purpose of the trip.
2. Disposition of Property
Local 379 did not maintain an inventory of hats, jackets, and other property it purchased, sold, or gave away. The union must report the value of any union property on hand at the beginning and end of each year in Item 28 of the LM-2 / Item 30 (Other Assets) of the LM- 3. The union must retain an inventory or similar record of property on hand to verify, clarify, and explain the information that must be reported in Item 28 / Item 30.
3. Paid Vacation
Local 379 also did not maintain any records documenting the authorized paid vacation that any of its full time officers and employees were entitled to or took during the audit year. Paid vacation is a form of compensation similar to salary and must be appropriately authorized in the union bylaws or by membership action. Further, records must be kept to verify that the bylaws or membership action is complied with. Based on your assurance that Local 379 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.
Also, as we discussed during the exit interview, the audit revealed that Local 379 does not have a clear policy regarding the outside employment of Business Agent Tommy Hill when he acts as a Team Leader employed by television networks at various sporting events. The union needs a clear policy approved by the membership that addresses this outside compensation while collecting a salary from the union.
I want to extend my personal appreciation to 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.