Olms interpretative Manual

CONTENTSOFANNUALREPORT:FISCAL YEAR

101. 
     LMRDA,SECTION201(b)
     

.....itsfinancialconditionandoperationsforitsprecedingfiscal year---

101. 
     FISCALYEARFORREPORTSREQUIREDSEE29CFR403.1
     

(TechnicalRevisions:Dec.2016)

214.105NEEDTOADOPTFISCALYEAR

The law does not call for a specific fiscal year period. It is however, implicit in the phrase that"every labor organization shall file annually" a financial report. Therefore each labororganizationshouldselectaconvenientfiscalyearendingdateforreportingpurposes.

214.110CHANGEINFISCALYEAR

It is not necessary to obtain the approval of the Secretary of Labor of a proposed change in alabor organization’s fiscal year. However, organizations which file Federal income tax returnsmustobtainapprovaloftheInternalRevenueServiceofanyproposedchange offiscal year.

Request for that approval is made on Form 1128, obtainable through district offices of theInternalRevenue Service.

214.111

There is nothing in the Labor-Management Reporting and Disclosure Act of 1959 whichprevents local unions from changing their fiscal years for the purpose of bringing them intouniformityor for any other reason ofadministrativeor accounting convenience.

214.115INTERNATIONALCHANGINGLOCAL'SFISCALYEAR

A clause adopted by an international labor organization making it mandatory for eachsubordinate local's fiscal year to end on December 31 of each year is proper if appropriate actionto comply was taken by the locals. Such action by the locals would have to be in accordance withtheir own constitution and bylaws, and in conformity with other regulations, such as those of theInternal Revenue Service pertaining to fiscal years. If, therefore, the local's fiscal year in factended on December 31, the local would then have until the end of March to comply with section201(b). However, if such proper action was not taken, and the local's fiscal year in fact ended onsome other previously established day, the 90-day period for making the report should becalculatedfromthat date.

(Revised:Dec.2016)

214.120EFFECTOFCHANGE

Locals designating a new fiscal year prior to the expiration of a previously established fiscalyear period are required, by 29 CFR 403.1, to file a financial report for the resulting period ofless than 12 months. Subsequent reports should be filed within 90 days after the close of eachnewsucceeding year.