For Many Locals, It’s LM Reporting Time

(This article appears in the March-April 2014 issue of The American Postal Worker magazine.)

Elizabeth Powell, Secretary-Treasurer

All APWU locals and retiree chapters that receive dues rebates from the national union must file an annual financial report with the Department of Labor. The reports are required by the Labor Management Reporting and Disclosure Act (LMRDA) and must be filed within 90 days of the end of the local’s fiscal or accounting year. For many locals the accounting year corresponds with the calendar year, so their reports for 2013 must be filed by March 30, 2014.

Reports required by the Labor Management Reporting and Disclosure Act must be filed within 90 days of the end of the local’s fiscal year.

Once filed, the reports become a matter of public record and are posted on the Department of Labor’s website. LM reports must show all of the local’s revenue and expenditures for the year.

One of three reports must be filed, depending on the amount of the local’s annual receipts. “Receipts” include union dues paid to the local, interest on investments, rental income, and proceeds from the sale of aprons and other union gear. Savings and investments are not considered receipts; only the interest or income on such accounts must be reported.

New officers should verify that previous union officers have submitted the required reports. And, as part of the local’s audit process, trustees should also verify that the required reports have been filed.

Doing the Right Thing

In 2008, delegates to the union’s National Convention adopted an amendment to Article 16 of the APWU Constitution requiring the Secretary-Treasurer’s Department to verify that locals were filing the required Department of Labor and IRS reports; holding local elections at least once every three years, and operating under a local constitution.

To comply with the requirement, the national union has been mailing notices to all locals requesting documentation showing that they were meeting their obligations. The requests prompted complaints from some locals that felt they shouldn’t have to provide the information more than once.

Depending on the value of a local’s receipts, an LM-4, LM-3 or LM-2 form must be filed.

• LM-4: Annual receipts   less than $10,000
• LM-3: Annual receipts   $10,000 to $249,999
• LM-2: Annual receipts   $250,000 or more

Unfortunately, the national union has no way to verify that local unions are continuing to comply with these obligations unless requests are made periodically.

However, since the Department of Labor provides the national union with a list of locals that have failed to file reports or that have filed delinquent reports, the Secretary-Treasurer’s Department will limit our requests for confirmation of LM filings to those locals.

Other verifications will still be requested, especially to confirm that locals have filed the annual 990 Form with the Internal Revenue Service. Failure to file an annual 990 Form or 990-EZ Form can result in significant financial penalties. For more information on 990 Forms and instructions, visit the Secretary-Treasurer’s Department pages on www.apwu.org.

We are working to establish a process to enable locals to submit the information to the national union electronically. Locals will continue to be able to submit the information by mail if they prefer.

Form LM-30

The Labor-Management Reporting and Disclosure Act also requires local union officers to make public “actual or likely” conflicts of interest where they might receive compensation (cash, payments, gifts) from a vendor or other entities or persons with whom the local does business.

It says:

Pursuant to section 202 of the Labor-Management Reporting and Disclosure Act (LMRDA), the Department established the Form LM- 30, which is intended to make public any actual or likely conflict between the personal interests of union officers and employees and their obligations to the union and its members. These conflicts concern payments, interests, and transactions involving: (1) the employers whose employees the union represents or actively seeks to represent; (2) vendors and service providers to such employers, the official’s union, or union’s trust; and (3) other employers from which a payment could create a conflict.

The rules related to filing the form are complicated, so any local officer who has questions is asked to call Roosevelt Stewart in the Secretary-Treasurer’s Department at 202-842-4215.