Olms interpretative Manual

EFFECTOFACKNOWLEDGMENTANDFILINGOFREPORTSBYOLMS

281.002 See 29 CFR 402.7(TechnicalRevisions:Dec.2016)

CANCELLATIONANDREMOVALOFREPORTSFROMOLMSFILES

282.005IMPROPERLYFILEDREPORTS

When an organization or individual upon demand and/or under protest files a reportpursuant to Title II, orwhen such report is voluntarily submitted, although it is questionable thatit is required, if it is thereafter definitely determined that the report is not called for by the Act,the report shall be canceled and removed from the disclosure file. Upon request, OLMS willreturnthe original reporttothe person whosubmittedit.

(TechnicalRevisions:Dec.2016)

RETENTIONOFREPORTINGRECORDS

285.001LMRDA,SECTION206

Every person required to file any report under this title shall maintain records on thematters required to be reported which will provide in sufficient detail the necessary basicinformation and data from which the documents filed with the Secretary may be verified,explained or clarified, and checked for accuracy and completeness, and shall include vouchers,worksheets, receipts, and applicable resolutions, and shall keep such records available forexamination for a period of not less than five years after the filing of the documents based on theinformationwhich they contain.

285.002See29 CFR 402.9,403.7, 404.7, 405.9, 406.8, 408.10

285.100RECORDKEEPINGANDSELF-INCRIMINATION

An individual member of a company or organization cannot make a valid claim ofprivilege under the 5th amendment with respect to the records of an organization, even thoughthe records might tend to incriminate him, because the records are the property of theorganization(Wilsonv.UnitedStates,221U.S.361,384-85(1911);UnitedStatesv.White,322

U.S. 694, 698-99 (1944)).The privilege which exists as to private papers cannot be maintainedin relation to recordsrequired by law to be kept (Shapirov. United States, 335 U.S. 1, 17(1948)), even though the intention of the law is to make the records available for enforcementpurposes (United Statesv. Darby, 312 U.S. 100, 125 (1941)).The doctrine extends to reportswhich are required by law (Pulfordv. United States, 155 F.2d 944, 947 (6th Cir. 1946);Communist Party of United Statesv. Subversive Activities Control Board, 367 U.S. 1, 115(1961)).

(TechnicalRevisions:Dec.2016)

285.200 ELECTRONIC RECORDS

There is nothing either in the Act or the Regulation regarding the required reports whichprohibits the use of electronic records as a means of maintaining files of the information requiredby section 206.See the OLMS Compliance Tip on Electronic Recordkeepingfor furtherinformation.

(Revised:Dec.2016)

285.300LOSSORDESTRUCTIONOFRECORDS

The Act does not require that the loss or destruction of a labor organization’s records bereported.However, in view of the explicit language of the Act with respect to the retention ofrecords,itissuggestedthatsuchlossordestruction be promptlyreported.

*285.400DOCUMENTSNECESSARYTOSUPPORTEXPENDITURES

Section 206 of the Act specifies that every person who is required to file a report pursuantto Title II shall maintain records providing in sufficient detail the necessary basic informationfromwhich thereports filed maybe verified,explained or clarifiedand checkedfor accuracy and

completeness.In the case of disbursements required to be reported in the aggregate, sufficientdetail would include identification of persons to whom payments are made and a description orexplanation of the items or services received for the payments.Such records, normally in theform of signed receipts, invoices, vouchers or canceled checks, must be retained by the unionandkept available for examination for a period of five years.

The LM-2 form contains supporting schedules in which certain aggregate disbursementsmust be particularized (see Schedules 15 through 20).However, the records referred to abovemust be kept for all disbursements required to be reported in the aggregate, whether or notparticularization is called for in a supporting schedule.For example, adequate records, includingvouchers, invoices, receipts from payees, or canceled checks, indicating the items covered and towhom payment was made, must be maintained to verify or explain any non-itemizeddisbursements, as well as for disbursements required to be itemized.Thus, for non-itemizeddisbursements, when a union officer has authority to expend union funds, documents must beretained by that officer and turned over to the union, identifying the recipient and reflecting theserviceorgoodsreceivedforeach separateexpenditure.

(Revised:Dec.2016)