U.S. Department of Labor
Office of Labor-Management Standards
Philadelphia District Office
Suite 760 West, The Curtis Center
170 S. Independence Mall West
Philadelphia, PA 19106
(215)861-4818 Fax: (215)861-4819
January 8, 2010
Mr. James Taylor, President
United Commercial Kitchen Equipment Union
P.O. Box 17607
Philadelphia, PA 19135
LM File Number 010-116
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Dear Mr. Taylor:
This office has recently completed an audit of United Commercial Kitchen Equipment Union 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 8, 2010, 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.
Other Issue
One Signature on Checks
During the audit, you advised that you are the only signatory on union checks. Adequate and effective internal controls require a separation of functions and responsibilities among a number of individuals who are actively involved in the financial process and who provide a system of "checks and balances" over each other's activities. The two signature requirement is an effective internal control of union funds. OLMS recommends that United Commercial Kitchen Equipment review these procedures to improve internal control of union funds.
I want to extend my personal appreciation to United Commercial Kitchen Equipment Union 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: James Thompson