Union’s finances are stable, and that means success (for now)

Financial Vice President's Report

Volume 112, No. 11November, 2012

Tom Olcott

One of the duties of the Local 802 Financial Vice
President is to assist in the production of a semi-annual audit of the local’s
finances and to report the audit results in Allegro. The audit for the first
half of 2012 was recently completed and reviewed by our accountants, Gould,
Kobrick & Schlapp, PC. The full results are published in the printed issue on page 38.

The audit results are really a sort of "no
news is good news." Members will note that the first page of the audit
shows a reduction in assets, but should not be alarmed. In the article below by
Controller Cathy Camiolo, she explains that the difference is nearly entirely
contained in the change in "work dues receivables," and that the lower
figures reflect more efficient recording and collection. In fact work dues are
off by only 1 percent.

Additionally, we have seen a growth in our
investments (which reflects the recent stock market rise) and an overall
increase in Local 802’s cash position. The details of the investment data are
well explained in Controller Cathy Camiolo’s report.

Finally, though the audited financials are not
designed to track Local 802’s actual budget, I can report that we are
significantly ahead of our budget, year to date.

In previous audit articles I mentioned that the
entire Local 802 accounting system has changed over the past year. The new
system provides for more consistent and accurate reporting of all of the data at
Local 802 and avoids certain prior practices which tended to exaggerate
fluctuations. Thankfully, this audit reflects those positive changes, and shows
Local 802 to be in a stable economic state. Considering the overall national
economy, stability really equals success.

Two other items warrant some mention. First, the
Executive Board minutes of Sept. 11, 2012 refer to amendments to Local 802’s
financial policy. The main change concerns air travel and allows for possible
seating upgrades on plane trips of more than four hours. Any such request must
be approved in advance by the board upon submission of relevant cost and flight
duration by the traveling officer or member. Another addition clarifies the need
for Executive Board approval of monthly travel expenses in excess of $2,000 per

Finally, the Executive Board approved the hiring of a consultant, LCO Group,
to conduct an operational audit of the union’s Information Technology
department in order to assess the department’s conditions and practices
regarding both hardware and software, and to advise on possible efficiencies to
be gained by deploying the staff in a different way. That audit has concluded
but we have not received the report as of this writing.