Office of Labor-Management Standards (OLMS)

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Form LM-2 - Frequently Asked Questions Statement A - Assets and Liabilities

Additions are made regularly to the Frequently Asked Questions, so please check these pages often for updates. If you have a question that is not addressed here, you may email your question to olms-public@dol.gov.

• New! Can Statement A be completed on the cash basis?
• What must be reported in Item 22 (Cash) of Statement A of the revised Form LM-2?
• What must be reported as an account receivable in Item 23 of Statement A of the revised Form LM-2?
• What must be reported as a loan receivable in Item 24 of Statement A of the Form LM-2?
• What must be reported in Item 25 (U.S. Treasury Securities) of Statement A of the Form LM-2?
• What must be reported in Item 26 (Investments) of Statement A of the Form LM-2?
• What must be reported in Item 27 (Fixed Assets) of Statement A of the Form LM-2?
• What must be reported in Item 28 (Other Assets) of Statement A of the Form LM-2?
• What must be reported as an account payable in Item 30 of Statement A of the Form LM-2?
• What must be reported as a loan payable in Item 31 of Statement A of the Form LM-2?
• What must be reported in Item 32 (Mortgages Payable) of Statement A of the Form LM-2?
• What must be reported in Item 33 (Other Liabilities) of Statement A of the Form LM-2?

Q. Can Statement A be completed on the cash basis?

A. Schedule 1, Accounts Receivable, and Schedule 8, Accounts Payable, must be completed in accordance with the instructions. Therefore, Statement A- Assets and Liabilities may be reported on either an accrual basis or on a modified cash basis.

Q. What must be reported in Item 22 (Cash) of Statement A of the Form LM-2?

A. Enter the total of all the labor organization's cash on hand and on deposit at the start and end of the reporting period in Columns (A) and (B), respectively. Include all cash on hand, such as undeposited cash, checks, and money orders; petty cash; and cash in safe deposit boxes. Cash on deposit includes funds in banks, credit unions, and other financial institutions, such as checking accounts, savings accounts, certificates of deposit, and money market accounts. Also, include any interest credited to the labor organization's account during the reporting period. Obtain the checking account balances reported from the labor organization's books as reconciled with the balances shown on bank statements.

Q. What must be reported as an account receivable in Item 23 of Statement A of the Form LM-2?

A. Ordinarily, accounts receivable are moneys due for goods sold or services rendered evidenced by notes, statements, invoices, or other written evidence of a present obligation. Enter in Column (A) the total of all gross accounts receivable at the start of the reporting period. Enter in Column (B) the total of all gross accounts receivable at the end of the reporting period, which is also reported on Line 28, Column B of Schedule 1 (Accounts Receivable Aging Schedule). If accounts receivable are carried on the labor organization's books at net (gross accounts receivable less the allowance for doubtful accounts), the labor organization may report the allowance for doubtful accounts in Item 69 (Additional Information).

Q. What must be reported as a loan receivable in Item 24 of Statement A of the revised Form LM-2?

A. Enter in Column (A) the total of all gross loans receivable at the start of the reporting period, which is also reported on Line 6, Column (B) of Schedule 2 (Loans Receivable). Enter in Column (B) the total of all gross loans receivable at the end of the reporting period, which is also reported on Line 6, Column (E) of Schedule 2.

Q. What must be reported in Item 25 (U.S. Treasury Securities) of Statement A of the revised Form LM-2?

A. Enter the total value of all U.S. Treasury securities as shown on the labor organization's books at the start and end of the reporting period in Columns (A) and (B), respectively. If the value reported is different from the original cost, the original cost must be reported in Item 69 (Additional Information). Other U.S. Government obligations, state and municipal bonds, and foreign government securities must be reported in Schedule 5 (Investments Other Than U.S. Treasury Securities) under "Marketable Securities" and in Item 26 (Investments).

Q. What must be reported in Item 26 (Investments) of Statement A of the revised Form LM-2?

A. Enter in Column (A) the total book value at the start of the reporting period of all investments other than U.S. Treasury securities, which are reported in Item 25 (U.S. Treasury Securities). Enter in Column (B) the total reported on Line 7 of Schedule 5 (Investments Other Than U.S. Treasury Securities).

Q. What must be reported in Item 27 (Fixed Assets) of Statement A of the Form LM-2?

A. Enter in Column (A) the total value as shown on the labor organization's books at the start of the reporting period of all fixed assets, such as land, buildings, automobiles, and office furniture and equipment. Enter in Column (B) the total reported on Line 8, Column (D) of Schedule 6 (Fixed Assets).

Q. What must be reported in Item 28 (Other Assets) of Statement A of the revised Form LM-2?

A. Enter in Column (A) the total value as shown on the labor organization's books at the start of the reporting period of all assets not reported in Items 22 through 27. Enter in Column (B) the total reported on Line 15 of Schedule 7 (Other Assets).

Q. What must be reported as an account payable in Item 30 of Statement A of the Form LM-2?

A. Ordinarily, accounts payable are those obligations incurred on an open account for goods and services rendered. Enter in Column (C) the total of all gross accounts payable at the start of the reporting period. Enter in Column (D) the total of all gross accounts payable at the end of the reporting period, which is also reported on Line 28, Column B of Schedule 8 (Accounts Payable Aging Schedule).

Q. What must be reported as a loan payable in Item 31 of Statement A of the Form LM-2?

A Enter in Column (C) the total of all gross loans payable at the start of the reporting period, which is also reported on Line 13, Column (B) of Schedule 9 (Loans Payable). Enter in Column (D) the total of all gross loans payable at the end of the reporting period, which is also reported on Line 13, Column (E) of Schedule 9.

Q. What must be reported in Item 32 (Mortgages Payable) of Statement A of the revised Form LM-2?

A. Enter the total amount of the labor organization's obligations that were secured by mortgages or similar liens on real property (land or buildings) at the start and end of the reporting period in Columns (C) and (D), respectively.

Q. What must be reported in Item 33 (Other Liabilities) of Statement A of the Form LM-2?

A. Enter in Column (C) the total amount as shown on the labor organization's books at the start of the reporting period of all liabilities not reported in Items 30 through 32. Enter in Column (D) the total reported on Line 14 of Schedule 10 (Other Liabilities).

Last Updated: 03/23/07