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U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Buffalo District Office
130 South Elmwood Street
Room 510
Buffalo, NY 14202-2465
(716)842-2900 Fax: (716)842-2901
January 7, 2008
Mr. Gary Rappleye, Financial Secretary
Electrical Workers UE
Local 329
318 Lake Street
Elmira, New York, 14901-2805
Dear Mr. Rappleye:
This office has recently completed an audit of Electrical Workers Local 329 under th
Compliance Audit Program (CAP) to determine your the provisions of the Labor-Management Reporting and Disclosure Act of 1959
(LMRDA). As discussed during the exit interview with you, President Kevin
Recording Secretary Kenneth Leupelt, and Treasurer Randy Bertelson on
2007, the following problems were disclosed during the CAP. The 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 requirement.
Section 206 requires, among other things, that labor organizations maintain adequae
records for at least five years by which each receipt and disbursement of funds, as
as all account balances, can be verified, explained, and clarified. As a general rule, labor
organizations must maintain all records used or received in the course of union
business. f For disbursements, this includes not only original bills, invoices, receipts,
applicable resolutions, but also documentation showing the nature of the union
business requiring the disbursement, the goods or services received, and
the recipient(s) of the goods or services. In most instances, this documentation
requirement can be satisfied with a sufficiently descriptive expense
an expense receipt is not sufficiently descriptive, a union officer or employee shoul
write a note on it providing the additional information. For money it receives, the la
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 329's 2007 records revealed the following recordkeeping violation:
General Expenses
Local 329 did not retain adequate documentation for reimbursed expenses totaling
at least $1,488.35. Although the union records contained a voucher made out for
the disbursement, original receipts were not submitted. For example, check #
for Horseheads Beverages on January 14, 2006 for $98.58 did not include a receipt.
The voucher only indicated "refreshments" but did not specify what was
purchased. Additionally, no documentation for a hotel stay at the Holiday
from Monroeville, PA for $437.52 in April 2006 was retained. Local 329 also did not maintain any records of members receiving store gift
that were given away during the summer outing and/ or Christmas gifts. The
union did retain a Christmas gift request form that is used for purchasing
union member's children, grandchildren, step-children, or foster children.
However, the union does not adequately document if the member's child
the gift.
Furthermore, no documentation was retained when Local 329 provided death
benefits to union members. A copy of the obituary or other verifying informabion
should be retained in the union records documenting the authenticity of the
benefit.
As previously noted above, labor organizations must retain original receipts,
and vouchers for all disbursements. The president and treasurer (or
corresponding principal officers) of your union, who are required to sign you
union's LM report, are responsible for properly maintaining union records.
Other Issue
Internal Controls
To strengthen internal controls, it was recommended that Local 329 keep itemi:
deposit slips to verify the deposits being made into the union's checking accou:
especially when combining several checks or checks and cash. Also, it was
recommended that each voucher be signed by two officers to establish a systerr
checks and balances for disbursements from the union accounts.
I want to extend my personal appreciation to Electrical Workers Local 329 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.
Sincerely,
Investigator
cc: Kevin Elmquist, President
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