U.S. Department of Labor
Employment Standards Administration
Office of Labor-Management Standards
Chicago District Office
230 South Dearborn Street
Room 774, Federal Office Building
Chicago, IL 60604
(312)596-7160 Fax: (312)596-7174

June 23, 2006

Ms. Jan Phillips, President
American Federation of Musicians AFL-CIO
Local 798
21055. Houston
Taylorvile, IL 62568

     Re: Case Number

Dear Ms. Phillips:

This office has recently completed an audit of Musicians Local 798 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 Jan Phillips and Regina Hohenstein on 4/12/2006, 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 CAP disclosed a violation of LMRDA Section 201 (a) which requires that a union submit a copy of its revised constitution and bylaws with its LM report when constitution and bylaw changes are made. Musicians Local 798 amended its constitution and bylaws in 2004, but a copy was not filed with its LM report for that year. A copy of Local 798's constitution and bylaws has now been filed.

Other Issues

The audit disclosed the following other issues:

During the audit, I advised union officials that the authorization for payment of the president's dues along with salary amounts paid to union officers could not be found in union records. I recommend that Local 798 document the authorized salary amounts in its constitution and bylaws or record them in meeting minutes or some other internal Document (following discussion in the appropriate membership and / orr executive board meeting). When the authorized salary amounts have been recorded in union records I would appreciate it if you would forward a copy of the record documenting the authorization to me at the above address.

I want to extend my personal appreciation to Musicians Local 798 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