Office of Labor-Management Standards (OLMS)
U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Washington, D.C. 20210
December 21, 2005
Ms. Linda Mays
President
American Guild of Musical Artists, AAAA, AFL-CIO
1430 Broadway 14th Floor
New York, New York 10018
Dear Ms. Mays:
The Office of Labor-Management Standards (OLMS) within the Department of Labor has recently completed a compliance audit at your headquarters under the International Compliance Audit Program (I-CAP). The purpose of this audit was to determine compliance with provisions of the Labor-Management Reporting and Disclosure Act of 1959, as amended (LMRDA) by the American Guild of Musical Artists, AAAA, AFL-CIO (AGMA or IU). The I-CAP team conducted an exit interview on December 8, 2003 with you and Ms. Geraldine Angel, Director of Operations, to review its findings, including the issues and problem areas identified during the audit as well as actions recommended to correct deficiencies and enhance internal control.
You were informed at the exit interview that an amended Labor Organization Annual Report, Form LM-2, for the fiscal year ended December 31, 2004, is required to be submitted within thirty days from the date of this letter to correct reporting and other deficiencies. Specific information on these deficiencies is presented below. We will schedule an on-site follow-up in approximately six months to review corrective actions taken, to discuss the amended Form LM-2 filed by the IU, and to continue cooperative efforts to prevent and/or correct LMRDA deficiencies. This letter does not purport to be an exhaustive list of all possible problem areas since the compliance audit was limited in scope.
AUDIT DETAILS:
Reporting Deficiencies LMRDA Section 201
Section 201 (b) of the LMRDA requires that unions file with OLMS an annual financial report that accurately discloses the union's financial condition and operations. The following deficiencies were noted in regard to the AGMA Form LM-2 for the fiscal year ended December 31, 2004.
Bonding Requirements LMRDA Section 502
Section 502 of the LMRDA requires that officers, agents, shop stewards or other representatives or employees of a labor organization who handle funds or other property of the labor organization must be bonded. The fidelity bond must be with a company approved by the Department of the Treasury and have no deductible.
Internal Controls
Adequate internal financial controls are essential in order for a union to fulfill its obligations under Title II and Title V of the LMRDA. During the AGMA audit, the I-CAP team identified weaknesses in implementing internal policy.
As discussed in the exit interview, the IU will submit an amended Form LM-2 for the fiscal year ended December 31, 2004 and a response to this closing letter within thirty days from the date of this letter. The response letter will identify the corrective actions implemented by the union based on the results of the compliance audit. In addition, the IU has agreed that the Form LM-2 filed for the fiscal year ending December 31, 2005 will also reflect the findings addressed in this letter. We will schedule an on-site follow-up in approximately six months to review LMRDA compliance and the amended Form LM-2, discuss the corrective actions that have been taken, and continue cooperative efforts.
We want to express our appreciation for the cooperation and courtesy extended by you and your staff during this compliance audit. If we can be of any assistance in the future, please do not hesitate to call us.
Sincerely,
Kim Marzewski, Chief
Division of International Union Audits
Last Updated: 04/11/06
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