I have attended numerous training classes for treasurers and now that it is getting close to the end of the year. I have been reviewing some of the items that I received. There are a couple of things that the officers and members of each branch should remember especially new officers. David Dorsey, CPA has given a class on conducting audits in small unions, a guide for trustees and the Labor Management Reporting and Disclosure Act (LMRDA) of 1959. The LMRDA requires that all unions with property and annual reports greater than $5,000 secure a bond for at least 10% of the receipts and assets handled. Also, all officers and employees should be bonded.

 

The LMRDA also requires unions to submit an annual financial report within 90 days after the end of their fiscal year, for most of us that would be March 31.

 

Dave Dorsey also gave us some warning signs to look for when conducting audits.

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Some warning signs include:

 

• apparent extravagance 

• absent local officials

• membership complaints

• phone calls not returned.

• vacations not taken.

• one-person office

• delinquent LM and 990 reports

• change in lifestyles.

• changes in personal health or habits

• abusive credit card usage

• unusual cash usage

• disorganized office

 

and “little birdies” to name a few.

 

He also spoke on Internal Financial Controls. Union officials must ensure the union’s funds and other assets are used solely for the benefit of the union and its members. Some effective controls can be established even in oneperson operations. One example is requiring two signatures on all checks: establishing a separation between functions and responsibilities. To prevent or at least deter the misuse or embezzlements of union funds, he suggests making regular deposits, getting prior authorization, avoid signature stamps or pre signed checks, require the financial officers give a report on the branch’s finances at each membership meeting and encourage trustee or audit committee members to conduct periodic audits.

 

I hope each branch has a copy of the NALC Branch Officer’s Guide to Finance and Administration. It really comes in handy for numerous things. As an officer of your branch, I would recommend you sign up to attend Branch Officers Training, formerly known as the Secretary Treasurer Training, offered by NALC. It has been quite educational for me.

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I look forward to seeing you at the State Convention in April, and Happy Holidays!