Article III - Maintaining Records
The following records must be maintained or caused to be maintained by the Secretary-Treasurer or other financial officer. For Affiliates with bookkeeping or accounting staff, many of the tasks out-lined may be delegated to those staff. All records listed below must be retained for a minimum of seven (7) years:
- Automated accounting system output, if any. See Appendix D for further information regarding auto-mated systems.
- Cash Book or Cash Receipts/Disbursements Journal. — Information required to be entered in the Cash Book must be recorded and totaled monthly. Those affiliates using automated accounting systems that provide comparable information as is found in the Cash Book need not maintain a manual Cash Book. Spreadsheets are an alternative for handwritten cash books.
- Bank receipts for all deposits.
- All documentation for receipts. — Each item deposited into a bank account should be clearly identified and supported by a remittance advice, dues deduction roster, dues rebate transmittal or other supporting documentation. A copy of that support must be kept on file. Affiliates should also retain a photocopy of the actual check received.
- All bank statements and canceled checks. — The canceled checks that are returned with any statement must be kept with that statement, regardless of the date or number appearing on the check. If the affiliate’s bank or credit union does not normally return canceled checks, the affiliate must either arrange with the bank or credit union to obtain front and back copies of their canceled checks, or change its account(s) to an institution that can provide actual or copies of their canceled checks. Canceled checks are an essential part of the audit trail; used to verify the accuracy of the affiliate’s financial records.
- Bank reconciliations. — Bank reconciliations should be prepared upon receipt of each statement and a copy of the reconciliation report attached to the bank statements. Timely reconciliation of the bank accounts may prevent losses due to errors or misuse of funds. Most bank statements have a bank reconciliation form that can be followed.
- All check stubs and voided checks. — The signature block should be removed from all voided checks, which are to be clearly marked as “void” in large bold letters. Voided checks should not be destroyed and are a part of the affiliate’s financial records and should be retained in a secure place.
- All paid bills or invoices.
- Copies of all International Union and Council per capita tax reports.
- All expense reports and all receipts for expenses reimbursed.
- All records of expenditures from any petty cash fund.
- All payroll records, including copies of filed IRS Form 941s, 940s and W-2s, as well as any other required state and local payroll reporting. See Appendices for additional information.
- All financial reports -- Prepared for the membership or Executive Board; all federal reports including attachments (Form 990, Form 990-EZ, Form 1099, Form 1120-POL, LM-2, LM-3 or LM-4) filed with the Internal Revenue Service or the U. S. Department of Labor; all reports or tax filings required by state agencies and all financial reports filed with the International Union. The copies maintained in the union’s records should include signatures and dates for all forms filed. See Article IX, Reporting, and the Appendices for additional information.
- Surety Bond Certificate of Coverage.
- All mortgages, loan agreements, lease agreements, lease-purchase or time-payment contracts, and all other contracts of any nature which involve financial obligations on the part of the affiliate.
- All documents constituting evidence of ownership by the affiliate of any property or equipment of any nature.
- Signed and dated copies of the Local Union Annual Financial Report (LUAFR) filed with the International Union.
- Signed and dated copies of annual Surety Bond Report filed with the International Union.
- Copies of any statements or transaction advice for any investment accounts maintained for the affiliate.
- Signed and dated copies of all affiliate officer or employee collective bargaining agreements, fringe benefits policies, and any policies regarding vacation, sick leave, severance, allowances, lost time, per diem, mileage, reimbursed dues, along with copies of records reflecting the accrued vacation, sick leave and severance of all officers and employees covered by such policies.
- Magnetic media (e.g., HDD, floppy drive), optical storage, (e.g., CD, DVD, Blu-ray), or solid state drive, (e.g., flash drive, SSD, SD cards) of all data files.
- Copies of the minutes of any Executive Board, membership, or committee meetings at which any financial decisions were made, approved or rejected.
- Correspondence from government agencies.
The following records must be maintained or caused to be maintained regularly by the Recording Secretary or other recording officer of the affiliate for a minimum of seven (7) years:
- Minutes of all membership meetings, conventions, or other delegate assemblies.
- Minutes of all Executive Board meetings.
- Copies of all attachments to minutes including: financial reports, annual audits, annual budgets, mortgages, loan agreements, lease agreements, lease-purchase or time-payment contracts, and all other contracts of any nature which involve financial obligations on the part of the affiliate.
When a new financial or recording officer is elected, the outgoing officer must give all such records to the incoming officer, as quickly as possible.
A list of records being given to the incoming financial officer should be pre-pared and signed by both the outgoing and the incoming financial officers. Copies of this records inventory list should be kept by both outgoing and incoming officers.