LABORERS' INTERNATIONAL UNION OF NORTH AMERICA
Picture Picture


October 16, 2001

 
TERENCE M. O'SULLIVAN
General President

 

ARMAND E. SABITONI
General Secretary-Treasurer

Vice Presidents:
VERE O. HAYNES
CHUCK BARNES
GEORGE R. GUDGER
MIKE QUEVEDO, JR.
TERRENCE M. HEALY
RAYMOND M. POCINO
EDWARD M. SMITH
JAMES C. HALE
JOSEPH S. MANCINELLI
STEVE HAMMOND
JOSEPH J. LICASTRO
ROCCO DAVIS
VINCENT R MASINO
WILLIAM H. QUINN

MICHAEL S. BEARSE
General Counsel


HEADQUARTERS:
905-16th Street,
 NW Washington, D.C.

20006-1765
(202) 737-8320
Fax: (202) 737-2754

Local Union 79
Mr. Daniel F. Kearney Secretary-Treasurer 7th Floor
32 West 18th Street new York, NY 10011


RE: AUDIT OF LOCAL UNION 79

  •      FOR THE PERIOD ENDED 3/31/01
  •      AUDIT CONCLUDED 7/16/01
  •      JOHN CONNOLLY, INTERNATIONAL AUDITOR
Dear Sir and Brother:

International Auditor John Connolly has reported to me the results of your recent audit. The Inspector General and his staff have reviewed the Audit Report and concur with the Auditor's recommendations. With those few exceptions, you have followed the Uniform Local Union Constitution and the Accounting and Finance Manual for financial activities admirably. Your adoption of the recommendations into your management scheme will bring Local 79 into full compliance and enhance the efficiency of your financial operations.

All of the Auditor's recommendations are important; however, the following are the most significant and their adoption should be undertaken as soon as possible:

  1. All expenses whether reimbursed or charged to a credit card must have proper documentation. Each expense must be justified by documentation to indicate the "who; what, where, when, and why" questions surrounding any expenditure. Submitting a receipt without answering these questions is not sufficient documentation.
  2. On October 4, 1995, the General Executive Board established a policy relating to its local affiliates payments for gifts and donations of union assets. This policy was reported to all local affiliates by several methods and has been stated and referenced in several issues of The Laborer





  Local Union 79 October 16, 2001 Page 2
 


magazine. The policy directs that the Inspector General shall review and approve gifts and donations (including bonuses) when they are above certain limits annually. You are requested to provide an explanation for your failure to seek the approval of the Inspector General as your gifts and donations significantly exceeded the established threshold limits.
 

3 . The miscellaneous snacks, lunch bills, and
gratuities must have membership approval and they
must be properly documented in the minutes with
sufficient documentation as described above.
   

Please report your progress in adopting the Auditor's recommendations to Inspector General W. Douglas Gow no later than December 31, 2001. If you encounter difficulty in accomplishing this, please contact International Auditor Connolly for clarification and/or assistance.
 

  With kind regards, I remain

  Fraternally yours.
Picture
  ARMAND E. SABITONI
  General Secretary-Treasurer

AES:med Attachment
 


cc: Raymond M. Pocino, Vice President
and Eastern Regional Manager

W. Douglas Gow, Inspector General
John Connolly, International Auditor





 
  RECOMMENDATIONS FOR LOCAL 79 - REPORT DATED AUGUST 31. 2001

  1 .Meetings - request in writing from the General President a variance to continue the practice of having only 10 general membership meeting each year. The Constitution Article VII, section 1 calls for at least one each month.
 
  1.    Expenses - attach all corresponding receipts with written documentation on them (who, what, where, why, and when) to all American Express bills and any form for reimbursement.
    		 
  2.    Minutes - have the Recording Secretary sign the original minutes and list the location of the meeting.
    		 
  3.    Gifts, Donations and Bonuses - follow the guidelines of the LIUNA faxline Volume VII, number 19, effective in July 2001, which state that only gifts or donation of union property or assets which exceed the fair market value of $10,000.00 be submitted to the Inspector General for review.
    		 
  4.    Coffee and Snacks - stop immediately the practice of buying coffee and snacks for the employees unless this is approved by the general membership.
    		 
  5.    Gratuities - have the Secretary Treasurer request approval from the general membership to dispense these gratuities (with specific amounts listed) and keep a detailed account of them.
    		 
  6.    Banking - inquire into whether linking money markets with checking accounts is feasible.