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On-line Interactive* Financial Training by National Secretary-Treasurer Gary Ruffner and James C. Kokolas, CPA
*Use your mouse to click on any underlined word(s) and it will link you to that information
NOTICES - WHAT'S NEW
ALL OFFICERS AND TRUSTEES HAVE A FICUCIARY RESPONSIBILITY TO PROTECT THE ASSETS OF THE LOCALPERFORM AN AUDIT TO BE SURE THE LOCAL’S PROCEDURES ADEQUATELY PROTECT IT’S ASSETS
IT IS REQUIRED BY THE NATIONAL CONSTITUTION
Article VI, Section 13 Section 13. All Local Unions and Councils with yearly incomes of $200,000 or more shall engage an independent public accountant to make a yearly audit of their financial accounts and shall make an annual report of such audit in writing to their membership with a copy sent to the National Office. A Local Union or a Council whose yearly income is under $200,000 and whose financial accounts are not annually audited by an independent public accountant shall establish an auditing committee either by election by the membership, or by appointment by the Local’s or Council’s President with ratification by the membership. This committee shall be composed of from 3 to 5 members, and its duty shall be to make a semi-annual examination of the financial accounts of the Local Union or Council, and to report its findings in writing to the membership and to the National Office semi-annually.
TRUSTEES AND OFFICERS AUDIT PROCEDURES TO FOLLOW:
10 STEP AUDIT PROCEDURE RECOMMENDED BY THE DOL FOR SMALL LOCALS you can print this booklet once you download it from the following site http://www.dol.gov/olms/regs/compliance//smunion/smallunions.pdf You can (call the DOL or the National Union for a copy of this booklet or click on the link above then print the booklet on your printer. See the 10 step audit outline below
Step 1 - Trace cancelled checks to the bank statements and disbursements journal.
Step 2 - Scan the disbursements journal and record unusual entries.
Step 3 - Trace employer dues checkoffs to the receipts journal and bank statements.
Step 4 - Confirm that receipts from all other sources have been properly recorded and deposited.
Step 5 - Identify all bank accounts, verify their ending balances, and review withdrawals/transfers.
Step 6 - Inventory fixed assets.
Step 7 - Confirm that the LM annual financial report for the latest completed fiscal year was filed on time. Department of Labor Guidelines for LM filing
Step 8 - Determine whether financial records were properly maintained.
Step 9 - Ensure that all officers and employees who handle funds are adequately bonded.
Step 10- Confirm that no officers or employees were loaned more than $2,000 by your union.
Step 11· Added by UWUA Sec-Treas Gary Ruffner – Be sure that your local has filed a 990 report according to your annual revenue level:
990-N less than $50,000 in annual revenue ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010),
990 EZ Less than $200,000 in annual revenue, 990 – EZ Instructions
990 Form – More than $200,000 in annual revenue, 990 Instructions
NEW REVENUE LIMITS FOR 990,990-EZ AND 990-N FILERS – ALL LOCALS MUS FILE A 990 REPORT – SEE REVENUE LEVELS BELOW TO DETERMINE WHICH 990 REPORT YOU MUST FILE. 990-N FILERS CAN LOSE THEIR TAX EXEMPT STATUS AND OTHER FILERS (990 AND 990 EZ CAN BE FINED $10 EACH DAY OR MORE FOR NOT FILING.
Form 990- EZ, 990, and 990-N are due every year by the 15th day of the 5th month after the close of your tax year.
Be sure that your local has filed a 990 report according to your annual revenue levels.
990-N less than $50,000 in annual revenue ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010),
990 EZ Less than $200,000 in annual revenue, 990 – EZ Instructions
990 Form – More than $200,000 in annual revenue, 990 Instructions
ONLINE FINANCIAL TRAINING PRESENTATION - LOOK HERE FOR TAX AND OTHER INFORMATION. Black and White Online training handout Note: Print in Landscape mode.
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Bureau of Labor Statistics for Cost of Living and other Information
Be sure that your local has filed a 990 report according to your annual revenue levels.
990-N less than $50,000 in annual revenue ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010),
990 EZ Less than $200,000 in annual revenue, 990 – EZ Instructions
990 Form – More than $200,000 in annual revenue, 990 Instructions
OTHER FINANCIAL INFORMATION YOU MAY NEED
Form LM-30 Labor Organization Officer and Employee Report: Union officers or employees (except employees performing exclusively clerical or custodial services) must file a Labor Organization Officer and Employee Report, Form LM-30, if they or their spouses or minor children have certain interests or dealings related to an employer whose employees their union represents or is actively seeking to represent.
Note: The Office of Labor-Management Standards published in the spring 2009 Semi-Annual Regulatory Agenda notice of an intended rulemaking to revise the Form LM-30 (Labor Organization Officer and Employee Report). See: http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=200904&RIN=1215-AB74. The rulemaking is intended to review questions of policy and law surrounding these reporting requirements. The rulemaking will focus on the changes resulting from a 2007 regulatory revision of the Form and instructions. This revision dramatically altered the old Form LM-30 and instructions, which had not substantially changed in over 40 years. Despite the promulgation of the new Form LM-30, fundamental questions regarding the scope and extent of the reporting obligations are unanswered, and litigation challenging some aspects of the form remains pending. In light of this uncertainty, the pending regulatory action, the pending litigation and the continuing obligation of union officers and employees pursuant to section 202 of the Labor-Management and Reporting Disclosure Act (LMRDA), 29 U.S.C. § 432, OLMS has determined that it would not be a good use of resources to bring enforcement actions based upon a failure to use a specific form to comply with the statutory obligation to report certain financial information. Accordingly, OLMS will refrain from initiating enforcement actions against union officers and union employees based solely on the failure to file the report required by section 202, using the 2007 form, as long as individuals meet their statutorily-required filing obligation in some manner. OLMS will accept either the old Form LM-30 or the new one for purposes of this non-enforcement policy.
CAMPAIGN FINANCE REQUIREMENTS
REFERENCE GUIDE
OTHER LINKS
GETTING STARTED CHECKLIST
FOR NEW LOCAL UNIONS AND NEW TREASURERS
1. Adopt Bylaws and Elect Officers after consulting the Regional Director.
2. Apply for an EIN number ~ To apply for an Employer Identification Number (EIN) Form SS-4
a. You will need the Utility Workers Group Exemption Number (GEN). In Section 8a check the box for other non profit and specify Labor Union, 501©(5). The Utility Workers Group Exemption Number (GEN) is 0733. This is the number needed to cover your local under our group non-profit exemption.
3. File a copy of the local’s bylaws with the Department of Labor with Form LM-1. LM-2, 3 and 4 now available electronically. The annual financial (LM-2, 3 or 4) report is due within 90 days after the end of the union’s fiscal year. Contact the OLMS office in your region for forms or help.
4. Set up dues checkoff with the employer to collect union dues. Contact National Secretary-Treasurer Gary Ruffner immediately if members object to paying union dues. Request the objecting member to submit their objection in writing to UWUA National Secretary-Treasurer Gary Ruffner at 815 16th Street, NW, Washington, DC 20006.
5. Open a checking account with your EIN number, order checks with two signature lines and have the bank agree that two authorized signatures are required to process any checks. Only authorize the Treasurer and one or two officers to sign checks and make sure there are two live signatures on each check. Do not pre-sign blank checks. Keep and retain all records and receipts for 7 years. Speak to the bank representative about Federal Deposit Coupons for tax payments after reviewing IRS Circular E Publication which outlines tax responsibilities. IRS Forms and instruction listing You will need to get a Circular E -Supplemental Tax Guide Publication 15-A to deduct the proper amounts for taxes, Social Security, Medicare. You will have to pay the employer match for Social Security and medicare payments. Contact your state government and city tax departments for those taxes. Review the employer requirements for matching Social Security and Medicare payments and include them in the appropriate tax payment schedules using quarterly, monthly or electronic 941 payments. Use a ledger, accounting program, or spreadsheet program to record these taxes for purposes computing amounts for W-3, W-2, state and Federal tax filing and reporting requirements. You can purchase Standard W-2 and W-3 forms for reporting annual tax payments at an office supply store or online. Be aware of deadlines for submitting these forms to the individual due by January 31 for each employee. The W-3 form is due by the last day of February.
6. NEW REVENUE LIMITS FOR 990 AND 990-EZ FILERS Be sure that your local has filed a 990 report according to your annual revenue levels.
990-N less than $50,000 in annual revenue ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010),
990 EZ Less than $200,000 in annual revenue, 990 – EZ Instructions
990 Form – More than $200,000 in annual revenue, 990 Instructions
7. FMCS MANDATORY 60 DAY NOTIFICATION - You must do this to terminate, amend or modify any existing collective bargaining agreement. Click use an online form from www.fmcs.gov then click on: Filing a Notice to Mediation Agencies (F-7) with FMCS http://www.fmcs.gov/ internet/itemDetail.asp?=127&itemID=19661
8. Bureau of Labor Statistics for Cost of Living and other Information
9. For taxable per diem amounts see: Reimbursement of Expenses and Per Diems
10. IRS STANDARD MILEAGE RATE BEGINNING JANUARY 1, 2012 is 55.5 cents per mile The rate will increase to 55.5 cents a mile for all business http://www.irs.gov/newsroom/article/0,,id=250882,00.html
11. Accounting Periods and Methods
12. Have all employees fill out a W-4 certificate so that you deduct the proper tax amounts and have record of the proper information from the employee for witholding. IRS Forms and instruction listing
13. Give all Officers and Trustees of the Local a copy of the Internal Financial Controls publication of the Dept of Labor’s LMRDA. Review Recordkeeping requirements and other guidelines that are also contained in the 10 Step audit procedures booklet listed below.
14. We recommend that semi-annual (every 6 months or twice a year) audits be performend wth Trustees to verify expenditures and account balances with receipts and statements. If receipts are more than $200,000 per year, you must arrange for an accredited accountant to perform an annual audit in accordance with the UWUA Constitution, unless you perform a semi-annual audit with 3-5 trustees. Article VI, Section 14. Click here for the semi-annual audit form
15. For those locals with less than $200,000 in receipts, you should establish the 10 step audit procedure recommended by the Department of Labor and you must send the UWUA a copy of Semi-Annual Audit Report Form which must be performed and its findings reported to the Local as required in the UWUA Constitution, Article VI, Section 14 Click here for the semi-annual audit form
10 STEP AUDIT PROCEDURE RECOMMENDED BY THE DOL FOR SMALL LOCALS you can print this booklet once you download it from the following site http://www.dol.gov/olms/regs/compliance//smunion/smallunions.pdf You can (call the DOL or the National Union for a copy of this booklet. See the 10 step audit outline below
Step 1 - Trace cancelled checks to the bank statements and disbursements journal.
Step 2 - Scan the disbursements journal and record unusual entries.
Step 3 - Trace employer dues checkoffs to the receipts journal and bank statements.
Step 4 - Confirm that receipts from all other sources have been properly recorded and deposited.
Step 5 - Identify all bank accounts, verify their ending balances, and review withdrawals/transfers.
Step 6 - Inventory fixed assets.
Step 7 - Confirm that the LM annual financial report for the latest completed fiscal year was filed on time. Department of Labor Guidelines for LM Filing
Step 8 - Determine whether financial records were properly maintained.
Step 9 - Ensure that all officers and employees who handle funds are adequately bonded.
Step 10- Confirm that no officers or employees were loaned more than $2,000 by your union.
Step 11· Added by UWUA Sec-Treas Gary Ruffner – Be sure that your local has filed a 990 report according to your annual revenue levels.
990-N less than $50,000 in annual revenue ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010),
990 EZ Less than $200,000 in annual revenue, 990 – EZ Instructions
990 Form – More than $200,000 in annual revenue, 990 Instructions
· Determine whether financial records were properly maintained (See DOL publication Retention of Records)
· Ensure that all officers and employees who handle funds are adequately bonded. The Department of Labor requires that your Local Union must be bonded according to the assets and income of the Local Union. The National Union will arrange for bonding and bill the local for the required coverage and premium. The bonding is normally a 3 year policy, and the Local will be billed once bonding is arranged. Contact Gary Ruffner, National Secretary-Treasurer and give him the detail of the Local’s assets, number of members paying dues, amount of dues collected per week, bi-weekly or monthly if dues are collected other than by the week. You should complete one of the National’s semi-annual audit forms to provide this information to the National Union.
· Confirm that no officers or employees were loaned more than $2,000 by your union.
ADDITIONAL AUDIT RECOMMENDATIONS by National Secretary-Treasurer Gary Ruffner - Check to make sure tax requirements for City, State, Federal, Social Security and Medicare taxes, employer Social Security & Medicare matching taxes and unemployment taxes are being paid on wages and be sure to file form 990 NOTE: Penalties can be assessed for noncompliance with payroll tax requirements and form 990. If you have less than $25,000 in revenue and fail to file the 990-N you can lose your tax exempt status.
Pay Per Capita dues to the National Union by the 15th of the following month for the previous month. Per Capita payments are to be paid to the National Union by the 15th of the following month. Payments must have the appropriate verification of per capita, see the UWUA Per Capita Verification Policy and Per Capita Verification Form and Per Capita Policy . Refer to the National Constitution, Article VI and the most recent UWUA Per Capita 2009, and UWUA Per Capita 2008, for Per Capita due to the National Union . Monthly Per Capita Payment Form, 2009 Monthly Per Capita Payment Form Review the National Union’s policy on per capita payments and Consult the Regional Director in your area if you have any problems collecting per capita. Article VI, Section 14. All locals unions with yearly incomes of $200,000 or more shall engage an accredited public accountant to make a yearly audit of their financial accounts. Unless their financial accounts are audited by an accredited public accountant, at least annually, it shall be the duty of each local union and each council to establish an auditing committee either by election by the membership, or appointment by the local’s or council’s President with ratification by the membership. This committee should be composed of from 3 to 5 members, and its duty shall be to make a semi-annual examination of the financial accounts of the local union or council, and to report its findings in writing to the membership, with a copy sent to the National Office.
1. Send Per Capita Payments with verification information, provided to the Local by the Company deducting dues, to National Secretary-Treasurer Gary M. Ruffner. Please note that some forms have the preceding Secretary-Treasurers name on them and such forms in the future will be printed with the National Secretary-Treasurer’s title and no corresponding name to save on reprinting costs. 2009 Monthly Per Capita Payment Form.
2. Review the Online Interactive Web Site developed by National Secretary-Treasurer Gary M. Ruffner with outlined content and requirements by CPA Linda Jardine. Click on any underlined portion of this page or that site to be automatically taken to that page or location for the latest and most accurate information.
IDENTITY THEFT ADVICE AVAILABLE
 This page has links to PDF files. To download, view and print the documents you will need Acrobat Reader installed on your computer. If you do not have Acrobat Reader, click here to visit the Adobe website and download/install Reader. Once installed, you can return to this page and get the documents.
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