U.S. Department of Labor
Office of Labor-Management Standards
New Orleans Office
600 S. Maestri Place., Suite 604
New Orleans, LA 70130
(504) 589-6174 Fax: (504) 589-7174
July 7, 2015
Mr. Steven Rider, Secretary Treasurer
OPEIU Local 107
115 West Main Street
Lafayette, LA 70501-6941
Case Number: 420-6000475()
LM Number: 541457
Dear Mr. Rider:
This office has recently completed an audit of OPEIU Local 107 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 President Chris Bingham on June 25, 2015, 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.
Record Keeping 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 Local 107’s 2013 records revealed the following recordkeeping violations:
1. Information not recorded in Meeting Minutes
During the audit Rider advised OLMS that LOA’s are taken for union business, (ex: e-board/company meetings, negotiations, and required events from OPEIU). LOA time is then paid by Bristow, and reimbursed by the local. Article VII Section 4 requires that all transactions and reports be reported too, and authorized by the membership. The meeting minutes do not contain any reference to LOA time being taken by e-board members. Minutes of all membership or executive board meetings must report any disbursement authorizations made.
2. Failure to Record Receipts
Local 107 incorrectly recorded the dues check off check for August totaling $22,368.04. The dues check was deposited into the local’s money market account, but recorded in the checking account. The transaction was not discovered until four months after the error, while reconciliations were continuously made accounting for the funds in the checking account. Union receipt records must include an adequate identification of all money the union receives. The records should show the date and amount received, and the source of the money.
3. Fixed Inventory List
Local 107 did not maintain a fixed inventory list of all assets. Local 107 has two laptops, two desktops, two printers, and a scanner/fax machine. Local 107 has been instructed to create a detail inventory list accounting for all assets.
Based on your assurance that Local 107 will retain adequate documentation in the future, OLMS will take no further enforcement action at this time regarding the above violation.
I want to extend my personal appreciation to OPEIU Local 107 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
cc: Chris Bingham, President