Financial Training

Financial Requirements for Officers And Trustees

On-line Interactive* Financial Training

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NOTICES – WHAT’S NEW

ALL OFFICERS AND TRUSTEES HAVE A FICUCIARY RESPONSIBILITY TO PROTECT THE ASSETS OF THE LOCAL. PERFORM 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 11Added by UWUA Sec-Treas  – 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 2011 and after (less than $25,000 in revenue for tax years ending after December 31, 2007 to December 31, 2010), there was no 990-N required prior to 2007.
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.

Contact National Secretary-Treasurer Mike Coleman with comments and/or suggestions to improve this financial site. Include your name and Phone #.

Bureau of Labor Statistics for Cost of Living and other Information

  • Print a grievance form for filing a grievance ~ If you would like the original Microsoft Word Document so you can edit for your use, send an e-mail request to National Secretary-Treasurer Mike Coleman: mcoleman@uwua.net

INTERNAL REVENUE SERVICE

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.

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 with the IRS. Go to www.irs.gov and type EIN in the search window in the top right corner of the page. You will need the Utility Workers Group Exemption Number 0733 (GEN). In Section 8a check the box for other non profit and specify Labor Union, 501(c)(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 Michael Coleman immediately if members object to paying union dues. Request the objecting member to submit their objection in writing, to UWUA National Secretary-Treasurer Michael Coleman at 815 16th Street, NW, Washington, DC 20006, in accordance with the UWUA Objection plan published in the Jan-Feb-Mar Utility Worker Magazine.

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), To to www.irs.gov and type 990-N in the search window in the top right corner of the page for instructions. Use the same procedure for the 990-EZ and 990 instructions and forms.
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 Informationwww.bls.gov

9. For taxable per diem amounts see U.S. General Services Administration (GSA) website.

10. IRS STANDARD MILEAGE RATE BEGINNING JANUARY 1, 2014 is 56 cents per mile. This is a ½ cent decrease from 2013.  http://www.irs.gov/2014-Standard-Mileage-Rates-for-Business,-Medical-and-Moving-Announced

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 Secretary-Treasurer – 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 Mike Coleman, 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 Michael Coleman – 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 Notification of 2015 per capita dues and increases Monthly Per Capita 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 Michael Coleman. Please note that some forms have the preceding Secretary-Treasurer’s 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. Notification of 2015 per capita dues and increasesMonthly Per Capita Form
  2. Review the Online Interactive Web Site developed by National Secretary-Treasurer Michael Coleman with outlined content and requirements. 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.

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