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U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
New York District Office
201 Varick Street
Room 878
New York, NY 1001 4
(646)264-3190 Fax: (646)264-3191
April 3, 2008
Mr. Irving Brazinsky, President
Cooper Union Federation of College Teachers (CUFCT)
Local Union 3163
51 Astor Place
New York, NY 10003
LM File Number 506-438
Case Number:----------
Dear Mr. Brazinsky:
This office has recently completed an audit of CUFCT Local 3163 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 yourself and the union's treasurer Mr.
Yapijakis, Vice President Mr. Stock and Secretary Ms. Salomon on April 3,2008, 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.
Reporting Violations
The audit disclosed a violation of LMRDA Section 201(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
CUFCT Local 3163 for fiscal year ending June 30,2006, was deficient in the following
areas:
Cash Receipts
The total receipts figure reported in Item 44 on CUFCT Local 3163's LM report for
audit period ($23,292) is not the total receipts figure according to the union's books
and the bank statements ($19,015.04). The instructions for Item 44 is the sum of all
the local's cash receipts including but not limited to dues, per capita tax and any
fees, fines and assessments. The audit disclosed that the employer issued dues
payment checks during the 2007 fiscal year that were for two months of the audit
period. The payments were recorded for the audit period, however were
deposited in the following fiscal year.
CUFCT Local 3163 is required to file an amended LM-3 report for fiscal year ending
6/30/2006 to correct the deficient item. CUFCT Local 3163 has agreed to file an
amended report by April 11, 2008.
Other Issues
1. Receipt Dates not Recorded
Several receipt entries in CUFCT Local 3163's check book register reflected dates
that the union deposited money, but not the date money was received. For
example, the union recorded the receipt of three dues payment checks by the date
these checks were deposited (3/10/2005) rather than by when they were received.
Union receipts records must show the date of receipt. The date of receipt is
required to verify, explain, or clarify amounts required to be reported in Statement
B (Receipts and Disbursements) of the LM-3. The LM-3 instructions for Statement
B state that the labor organization must record receipts when it actually receives
money and disbursements when it actually pays out money. Failure to record the
date money was received could result in the union reporting some receipts for a
different year than when the union actually received them.
2. Issue Dates and Amounts not Recorded
Several disbursement entries in the union's check book register reflected
inaccurate dates of issue (i.e. Check #=-issue date as per copy of cancelled check
is 4/12/2006 however in the union's check book register the issue date of this
check is recorded as 4/24/2006) and no check amount (i.e. check # purpose of
check recorded in union records but no amount recorded). The check amount and
date of issue is required to verify, explain, or clarify amounts required to be
reported in Statement B (Receipts and Disbursements) of the LM-3. The LM-3
instructions for Statement B state that the labor organization must record receipts
when it actually receives money and disbursements when it actually pays out
money. Failure to record the date and amount money was issued could result in
the union reporting some disbursements for a different year than when they were
actually issued by the union.
I want to extend my personal appreciation to CUFCT Local 3163 for the cooperation
and courtesy extended during this compliance audit to our investigators. We 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,
Supervisory Investigator
cc: Richard Stock - Vice President
Constantine Yapijakis - Treasurer
Carol Salomon - Secretary
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