Olms interpretative Manual

INITIALREPORTS

212.005PERIODCOVERED

A union which elected to file a report covering the last six months of its fiscal year for the yearin which the Act became effective, when it might have complied with the Act by reporting onlythe final three and a half months, was properly ordered to produce records to validate its entirereport, even though some of the records were related to events occurring prior to the effectivedate of the Act. The reason for this is that when the union chose to file its report for the sixmonth period, it assumed the burden imposed by the Act of maintaining the necessary records tosupportthereportwhichitchosetofile.

InternationalBrotherhoodofTeamstersv.Goldberg,303F.2d402,407,49LRRM2968(D.C.
Cir.1962),cert.denied,370U.S.938(1962).

(TechnicalRevisions:Dec.2016)

TERMINALREPORTS

212.100CONSOLIDATIONWITHOTHERLOCAL

Where locals have gone out of existence due to consolidation with other locals, the technicalrequirements of the Act provide for terminal labor organization reports, financial (if necessary),and terminal financial reports. If convenient to combine these reports in any way, it is possible todo so, as long as all of the information required in the Regulations is contained in the reports.(The specific requirements for the terminal reports are discussed in sections 402.5 and 403.5 ofthe Regulations.)

212.200MOSTFREQUENTPROBLEMS

1. 
   Oftenlettersare receivedgiving someterminalinformationbutnofinancialreport.
   
2. 
   Omissionsonterminalreports.
   
   1. 
      Effectivedateofterminationorlossofreportingidentity.
      
   2. 
      Reasonfortermination.
      
   3. 
      Name and mailing address of the labor organization into which terminated organization hasbeenconsolidated, merged or otherwise absorbed.
      
3. 
   Failuretoreportultimatedispositionof residual assetsorplansfordisposition.
   
4. 
   Missingannualreportsforfiscalyearspriortotheterminal report.
   

See Instructions for LM-2, Parts III, IV, V, and XII; Instructions for LM-3, Parts III, XI, and XII;andInstructions for LM-4, Item3 (Amended or Terminal Report) and PartX.

(TechnicalRevisions:Dec.2016)

212.300DISSOLVEDUNIONS

If the labor organization should lose its identity through merger, consolidation, or otherwise—that is, if the local should cease to exist as a separate local—then it must file a terminal reportwithin30 days after it ceases to exist.

*212.350TERMINALREPORTNEEDNOTLISTASSETSATZERO

A labor organization that has gone out of existence need not list its assets at zero on itsterminal financial report. The reporting provisions of the Act require only that a labororganization discloseits financial operations. The organization is not required to make anyfinancial transaction, such as a formal transfer of assets, prior to the time it ceases to be a labororganization. Thus, an organization filing a terminal report must show its financial status,includingassets, as ofthe time it ceasedtobealabororganization.

6/77