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U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Philadelphia District Office
170 S. Independence Mall West
Room 760
Philadelphia, PA 19106
(215) 861-4818 Fax: (215) 861-4819
January 10, 2008
Mr. Gregory Rabuttino, Financial Secretary
Painters AFL-CIO
Local 997
P.O. Box 418
Ridley Park, PA 19078
LM File Number 015-401
Case Number:----
Dear Mr. Rabuttino:
This office has recently completed an audit of Painter Local 997 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 on January 7, 2008, 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.
Recordkeeping Violation
Title II of the LMRDA establishes certain reporting and recordkeeping requirements.
Section 206 requires, among other things, that adequate records be maintained for at
least 5 years by which each receipt and disbursement 4f funds, as well as all account
balances, can be verified, explained, and clarified. As a general rule, labor organizations must
maintain all records used or receive d in the course of union
business.
For disbursements, this includes not only the retention of original bills, invoices,
receipts, vouchers, and applicable resolutions, but also, documentation showing the
nature of the union business requiring the disbursement or services received,
and the identity of the recipient(s) of the goods or In most instances, this
documentation requirement can be satisfied with 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 997's 2006 records revealed the following recordkeeping violation:
Contributions, Gifts, and Grants
Local 997 did not retain adequate documentation for its contributions, gifts and
grants. Specifically, contributions totaling $60 were made to the District
Council for a golf outing and a needy members benefit.
Based on your assurance that Local 997 will retain adequate documentation in the
future, OLMS will take not further enforcement action at this time regarding the above
violation.
Report Violation
The audit disclosed a violation of LMRDA Section 201l(b), which requires labor
organizations to file annual financial reports accurately disclosing their financial
condition and operations. The Labor Organization Annual Report Form LM-3 filed by
Local 997 for its fiscal year ending December 31,2006, was deficient in that the
contributions made to the District Council were not reported in Item 51, Contributions,
Gifts, and Grants as required.
I am not requiring that Local 997 file an amended LM report for 2006 to correct the
deficient item, but Local 997 has agreed to properly report the deficient item on all
future reports it files with OLMS.
I want to extend my personal appreciation to Painters Local 997 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: Fred Marrero, President
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