Olms interpretative Manual

LABOR ORGANIZATION ANNUAL REPORTSLM-2/LM-3/LM-4INGENERAL

1. 
   LMRDA,SECTION201(b)
   

Every labor organization shall file annually with the Secretary a financial report signed by itspresidentandtreasurerorcorrespondingprincipalofficerscontainingthefollowinginformationin such detail as may be necessary accurately to disclose its financial condition and operationsfor its preceding fiscal year--

1. 
   assetsandliabilitiesatthebeginningandendofthefiscalyear;
   
2. 
   receiptsofanykindandthesourcesthereof;
   
3. 
   salary, allowances, and other direct or indirect disbursements (including reimbursedexpenses)toeachofficerandalsotoeachemployee whoduringsuchfiscalyear, receivedmorethan $10,000 in the aggregate from such labor organization and any other labor organizationaffiliated with it or with which it is affiliated, or which is affiliated with the same national orinternational labor organization;
   
4. 
   directandindirectloansmadetoanyofficer,employee,ormember,whichaggregatedmorethan $250 during the fiscal year, together with a statement of the purpose, security, if any, andarrangementsfor repayment;
   
5. 
   direct and indirect loans to any business enterprise, together with a statement of thepurpose,security,if any, and arrangementsforrepayment; and
   
6. 
   other disbursements made by it including the purposes thereof; all in such categories as theSecretary may prescribe.
   

210.002SEE29CFR403.2

210.005REPORTINGWHEREDUESPAIDDIRECTLYTOPARENTBODY

An employer checks off the dues and initiation fees of a local union’s members and forwardsthem directly to the parent body.After per capita and other charges are deducted the remainderissentto thelocal.

If an intermediate or parent body receives dues checkoff directly from an employer on behalfof the reporting organization, the reporting organization does not report in Item 36 the portionretainedby the intermediate orparent body for percapitataxorotherpurposes,suchasaspecial
assessment. Any amounts retained by the intermediate body or parent body other than per capitatax must be explained in Item 69 (Additional Information). For example, if the intermediate bodyor parent body retained $500 of the reporting organization's dues checkoff as payment forsupplies purchased from that body by the reporting organization, this should be explained in Item69,butthe$500shouldnotbereportedasareceiptordisbursementoneitherorganization'sForm LM-2. If, however, the intermediate body or parent body disbursed part of the reportingorganization'sduescheckoffonthatorganization'sbehalf,thisamountshouldbeincludedinItem36 and in theappropriate disbursementitemon thereporting organization's FormLM-2.
For example, if the intermediate body or parent body disbursed $500 of the reportingorganization's dues checkoff to an attorney who had provided lobbying services to the reportingorganization, this amount should be reported in Item 36 and as a disbursement in Schedule 16(Political Activities and Lobbying) of the reporting organization's Form LM-2.See Form LM-2Instructions,Item36(DuesandAgencyFees).

(Revised:Dec.2016)