(This article first appeared in the January-February 2017 issue of The American Postal Worker magazine.)

The start of the new year is an excellent time to put in place procedures and policies to help local and state union officials comply with their legal and financial responsibilities. To assist our local and state unions, local and state officials are urged to consider the following recommendations. 

Authorization for Salaries and Expenses: Make sure there is authorization for officer and employee salaries, allowances, and expenses. Although the Office of Labor Management and Standards (OLMS), the division of the Department of Labor that enforces the Labor Management Reporting and Disclosure Act (LMRDA), does not recommend one best policy for authorizing officer and employee salaries, allowances, expenses, and/or paid leave, it strongly recommends a written policy approved by the governing body or constitutional language to ensure compliance with the LMRDA and to safeguard union assets. The authorization for dues rebates, car allowances, or any payments or compensation to union officers must be documented in at least one union record. Payment of reimbursed expenses must also be documented and a record of such documentation must be maintained.

In some unions, officer and employee salary levels and allowances are authorized in the local union constitution or by-laws; in these cases, salaries may be tied to USPS pay levels or other key job classifications under a collective bargaining agreement administered by the union. A record of the applicable rates must also be maintained.

If the local union compensates retired members for work performed for the union, there must be specific language either in the constitution, or in a written policy or motion, authorizing the payment and rate of pay for that work.

Treasurer’s Reports: There is a common practice at regular membership meetings to make a motion to approve the treasurer’s report. Although there should be a financial report made at every executive board and membership meeting, the financial report does not have to be approved because the figures relied upon to compile the report have not been audited. Just like your bank statement is just a statement until it is reconciled, a report at a meeting is just that, a report. The proper motion is to hold the report for the audit report, which does have to be adopted by the membership. That is why there should be regular internal and external audits of the local funds.

Large and Unusual Transactions: Establish a policy and practice that requires prior authorization to be obtained for large or unusual transactions by the union. Many times these large and unusual transactions – such as computers, copiers, fax machines, building repairs, or furniture – are placed under a budget category and presumed to be preapproved. The membership has the right to be informed and have input when large sums of local funds are disbursed. Many unions require membership approval for certain expenditures, such as all expenses over a stipulated dollar amount. Remember, if new equipment or furniture is purchased, make sure it is added to the union’s fixed assets inventory.

Routine and Recurring Expenses: Consider introducing a standing motion to authorize payment for recurring expenses, such as telephone, rent and utilities, as well as per capita payments and taxes. A number of unions have adopted standing orders or policies that authorize payment of recurring expenditures. If such a standing order or policy has been adopted, the union must maintain records of authorizing such a policy or standing order in at least one union record. All such authorizations obtained during union meetings must be documented in the minutes.

Amended Constitutions: Federal law, LMRDA Section 201(a), requires a union to submit a copy of its revised constitution and bylaws with its LM report when it makes changes to its constitution or bylaws. If your local constitution has been amended, make sure an updated copy is filed with your next annual LM report.

Disposing of Union Property: The DOL specifically requires union officials to account for all union property, and to not dispose of union property without the knowledge of the membership, whose dues were used to purchase the item(s). One of the questions that must be answered on the union’s annual LM report is, Did the union dispose of any asset other than by sale?

Item 13 on the LM-2 and LM-3 reports asks, During the reporting period did your organization acquire or dispose of any assets in any manner other than by purchase or sale? A recent audit of an APWU local illustrates this issue. The DOL agent stated the local union should have answered, “Yes,” to item 13 because the local gave away t-shirts and watches totaling at least $800. The type and value of any property received or given away must be identified in the additional information section of the LM report along with the identity of the recipient(s) or donor(s) of such property. For reporting purposes, each recipient need not be itemized.

Recipients can be described by broad categories, if appropriate, such as “members” or “new retirees.” Also, if property of the union is disposed of, it should be in the form of an official approved motion to dispose of the property rather than local officials simply stating that they disposed of the property because it was broken or obsolete.

Full-Time Officers and Full-Dues Retirees National Per Capita Dues

If the local or state union treasurers are collecting the national per capita dues of full-time officers and full-dues paying retirees, those dues must be forwarded to the National Office no later than each quarter in order for these members and officers to maintain good standing in the union. Inquiries should be directed to Merika Smith, Secretary-Treasurer’s Department, 202-842-4244 or MSmith@apwu.org.