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Office of Labor-Management Standards
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Office of Labor-Management Standards (OLMS)

International Compliance Audit Program (I-CAP)

The closing letters for the I-CAP, and the follow-up letters that may be required are now posted on the I-CAP Closing Letters page.

Unions subject to the Labor-Management Reporting and Disclosure Act (LMRDA) must file annual financial reports with the Office of Labor-Management Standards (OLMS). In addition, union officers and employees, employers, labor relations consultants, and surety companies are required to file reports under certain circumstances specified by the LMRDA. Federal sector unions subject to the standards of conduct provision of the Civil Service Reform Act (CSRA) are also required to file annual financial reports with OLMS.

The reports and documents required to be filed under the LMRDA are public information, reflecting Congress’ intention when enacting the LMRDA that the labor-management process, union members, officers, and the public in general would all benefit from having access to this information.

Audits are performed by OLMS pursuant to the LMRDA to determine if unions and other entities and individuals are complying with the law, to investigate potential violations of the law, and to provide compliance assistance to help unions meet the statutory requirements. The OLMS International Compliance Audit Program (I-CAP) is a specialized audit of records and investigation designed to verify LMRDA compliance by national and international unions.

At the conclusion of an I-CAP audit, a closing letter is sent to the union that identifies reporting deficiencies, recordkeeping violations, and internal control problems. The closing letter does not purport to be an exhaustive list of all possible problem areas since the audits are limited in scope; however, it does provide guidance for the union to facilitate compliance with the requirements of the LMRDA. If internal control issues have been identified during the audit, the closing letter provides the union with recommendations to improve internal controls that may help reduce the possibility of fraud and embezzlement of union resources. The union may be directed to submit an amended Labor Organization Annual Report (Form LM-2, LM-3, or LM-4) to correct reporting and/or other deficiencies. If corrective actions are required following an I-CAP, OLMS will schedule an on-site follow-up audit approximately six months after the date of the closing letter.

I-CAP Frequently Asked Questions

The closing letters for the I-CAP, and the follow-up letters that may be required are now posted on the I-CAP Closing Letters page.

Copies of union annual financial reports may be viewed in the OLMS Internet Public Disclosure Room.

Last Updated: 08/25/06