Article IX - Reporting
The "Bill of Rights of Union Members" of the International Constitution ensures every member's right to have a "full and clear accounting of union funds at all levels" including "periodic reports to the membership by appropriate fiscal officers...” It is the responsibility of all elected officers to ensure that members receive timely and accurate reports regarding the finances of their affiliate and to ensure that required reports are properly prepared and filed timely. The following reports, required by law or by constitution, serve to keep the members informed.
A monthly financial statement must be prepared at the end of each month, by, or under the supervision of the financial officer. Regular financial reports must be made to the Executive Board and to the membership. Monthly financial reports must be completed and available to the Executive Board and/or membership no later than thirty calendar days following the end of each month. A copy of this report should be attached to the minutes and a copy provided to all of the signatories.
The monthly financial statement must include a listing of income showing separately, and at a minimum, the following items:
- Income from dues and/or per capita tax.
- Income from initiation and/or reinstatement fees, if any.
- Income from any other sources, identifying the source and the purpose of the funds received.
[Note: The International Constitution prohibits the issuance or sponsorship of any publication which is financed (in whole or part) through the sale of advertising without advance approval of the International Executive Board.]
- Total income for the month.
The monthly financial statement must include a listing of expenditures, showing separately, and at minimum, the following items:
- Amounts paid for per capita taxes and other affiliation fees.
- Totals by category of amounts paid to individuals in the form of salary, lost time, allowances, reimbursed expenses, and/or convention expenses.
- Totals by significant category of amounts paid for other operating and administrative costs of the affiliate.
- Total expenditures.
The monthly financial statement must show the excess (or the deficit) of income over (or under) expenditures. It must also include, as a part of the report, a balance sheet or a statement of cash assets as of the end of the month and a listing of all unpaid bills and any contractual obligations which have not been paid. The monthly financial report must be presented at the next regular membership meeting and attached as a permanent part of the affiliate’s minutes.
All Councils and any Local Union having 2,000 or more members must prepare a monthly report showing actual income and expenses versus budgeted income and expenses for the month and the year-to-date.
The affiliate may be required to file various governmental reports such as an IRS Form 990 Series, IRS Form 1120-POL, etc. Failure to file any required government report could cause a penalty to be imposed on the affiliate. For that reason, all affiliates are directed to the following topics in the Appendices:
Every Local Union is required to file with the International Union the Local Union Annual Financial Report, (LUAFR), on a form supplied by the International Union. This report must be reviewed and signed by both the President and chief financial officer.
This annual financial report has been designed to comply with AFSCME’s reporting requirements and to permit the officers of the Local Union to evaluate their financial practices and records as the report is being completed. The previous year’s financial statements should be used when completing the LUAFR. This report must be filed by May 15 of each year, or four and one-half months after the fiscal year end.
All officers and employees of affiliates are covered by a Surety Bond which is obtained for each affiliate through the International Union. The minimum coverage required is “not less than ten percent of the assets handled by an affiliate, except that no bond shall be required in an amount greater than $500,000.”
The International Union’s Surety Bond covers affiliate officer positions (e.g., President, Vice President, Recording Secretary, Secretary-Treasurer, Executive Board Member) and all employees of the affiliate. Newly elected officers are automatically covered under the affiliate’s existing Surety Bond.
Every affiliate is required to submit to the International Secretary-Treasurer a Surety Bond Report, a “statement of assets handled during the previous calendar year.” The information contained on the Surety Bond Report allows the International Union to determine the minimum bond coverage needed by each affiliate and provides essential data needed for negotiating the terms and cost of the bond. This report must be filed by March 1st of each year, regardless of the affiliate’s fiscal year end
All Councils and those Local Unions having 2,000 or more members are required to prepare quarterly financial statements, which must include a balance sheet and an income statement. Copies of all such quarterly financial statements are to be submitted to the International Secretary-Treasurer in a timely manner.