U.S. Department of Labor
Office of Labor-Management Standards
Los Angeles District Office
915 Wilshire Boulevard, Suite 910
Los Angeles, CA 90017
(213) 534-6405 Fax: (213) 534-6413
May 7, 2010
Mr. Gregg Gibson, President
Communication Workers of America (CWA) Local 9586
12330 East Firestone Blvd.
Norwalk, CA 90650
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LM Number: 504635
Dear Mr. Gibson:
This office has completed an audit of Communication Workers of America (CWA) Local 9586 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, Judy RaPue, and Leticia Gutierrez on August 18, 2009, 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 Violations
Title II of the LMRDA establishes certain reporting and recordkeeping requirements. Section 206 requires, among other things, that labor organizations maintain adequate records for at least five years by which each receipt and disbursement of 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 received in the course of union business.
For disbursements, this includes not only original bills, invoices, receipts, vouchers, and applicable resolutions, but also documentation showing the nature of the union business requiring the disbursement, the goods or services received, and the identity of the recipient(s) of the goods or services. In most instances, this documentation requirement can be satisfied with a sufficiently 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 CWA Local 9586’s 2008 records revealed the following recordkeeping violations:
1. General Reimbursed and Credit Card Expenses
CWA Local 9586 did not retain adequate documentation for reimbursed expenses and credit card expenses incurred by union officers totaling at least $6,251.80. For example, a September 2008 credit card statement showed a $116.16 charge for a purchase made with Seiko Instruments, but no details were provided describing what was purchased and the reason for the purchase. Also, a September 2008 credit card statement showed a $384.50 charge made at FedEx Kinko’s, but no details were provided describing what was purchased and the reason for the purchase.
As previously noted above, labor organizations must retain original receipts, bills, and vouchers for all disbursements. The president and treasurer of your union, who are required to sign your union’s LM report, are responsible for properly maintaining union records.
2. Meal Expenses
CWA Local 9586 did not require officers and employees to submit itemized receipts for meal expenses totaling at least $3,927.48. The union must maintain itemized receipts provided by restaurants to officers and employees. These itemized receipts are necessary to determine if such disbursements are for union business purposes and to sufficiently fulfill the recordkeeping requirement of LMRDA Section 206.
CWA Local 9586 records of meal expenses did not always include written explanations of union business conducted or the names and titles of the persons incurring the restaurant charges. For example, a June 2008 credit card statement showed a charge for $57.52 at a restaurant, but failed to provide details about the nature of the business conducted and the attendees. Union records of meal expenses must include written explanations of the union business conducted and the full names and titles of all persons who incurred the restaurant charges. Also, the records retained must identify the names of the restaurants where the officers or employees incurred meal expenses.
Based on your assurance that CWA Local 9586 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violations.
I want to extend my personal appreciation to Communication Workers of America (CWA) Local 9586 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,
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Investigator
cc: Ms. Leticia Gutierrez, Secretary-Treasurer