Olms interpretative Manual

COMBINEDORCONSOLIDATEDREPORTING

213.005GENERALLYNOTALLOWED

The Act requires that everylabor organization covered by its provisions submit an annualfinancial report which covers its own financial activities and operations.A report submitted fortwo labor organizations combines and consolidates the financial activities of those labororganizations and therefore is not acceptable.Each local must submit its own report which issignedby itspresident andtreasurerorcorresponding principalofficers.

213.007NOTALLOWEDWHENLOCAL“HANDLES”FUNDS

Where a local union pays a monthly assessment to a Joint Board which is (1) deposited in abank account to the credit of the local’s Unemployment Relief Fund, (2) set up for the benefit ofthe members of the local, and (3) disbursed by a committee made up of members of the local, areport of the receipts and disbursements from this fund must be reported separately by the localonitsLM-3andmaynotbereportedinaconsolidated financial reportbytheJointBoard.

One of the conditions for filing consolidated financial reports is that the local unions includedin the report “neither receive nor handle any funds.”The local in question appears to be“handling” the funds of the Unemployment Relief Fund in that it exercises sole control over thedisbursements therefrom through a committee made up of members of the local.The JointBoard’s only function in connection with the fund is to do the bookkeeping of the fundtransactions.

213.100WHENALLOWED

A consolidated labor organization annual report by an intermediate body such as a joint boardor council which includes the financial condition and operations of its constituent locals isacceptable, provided (1) each constituent local union files a separate, individual annual reportproperly signed, (2) the intermediate body reports the names of officers of the constituent localsto whom any payments have been made together with the purpose and amount of such payments,and(3)eachofthelocalsincludedinthereportneitherreceivesnorhandlesanyfunds,nordoes

it hold title alone to any assets or other property. All relevant questions are to be completed, andthe intermediate body with which the local is affiliated indicated on the negative report as well asashowingmadethatthelocalhasnoreceipts,nodisbursements,noassets,andnoliabilities.

Consolidated annual reports by groups of locals each of which has assets or handles funds butwhose accounts are handled on a pooled or centralized basis are unacceptable. There is nothingin the LMRDA which prohibits centralized accounting. However, under section 201(b) eachlabor organization must submit annually a report of its own financial condition and operationsshowing its assets, liabilities, receipts, and disbursements. Thus, if a number of labororganizations wish to utilize centralized accounting, such accounting must have the capability ofproducing, and in fact produce, separate and distinct annual reports limited to the financialcondition and operations of the individual locals or other bodies being served by the centralizedaccountingservice.

(Revised:Dec.2016)

*213.200SIMPLIFIEDANNUALREPORTSFORCERTAINSMALLERLABORORGANIZATIONS

Pursuant to 29 CFR 403.4(b) a local labor organization which is not in trusteeship and whichhas no assets, no liabilities, no receipts, and no disbursements during the period covered by theannual report of the national organization with which it is affiliated need not file an annualfinancialreportifthefollowingconditionsaremet:

1. 
   It is governed by a uniform constitution and bylaws filed on its behalf pursuant to §402.3(b)ofthischapter,anddoesnothave governing rulesofits own;
   

2. 
   Its members are subject to uniform fees and dues applicable to all members of the locallabororganizations for whichsuch simplified reportsare submitted;
   

3. 
   The national organization with which it is affiliated assumes responsibility for the accuracyof, and submits with its annual report, a separate letter-sized sheet for each local labororganization containing the following information with respect to each local organization in theformatillustrated below as part ofthisregulation:
   

1. 
   Thenameanddesignation numberorotheridentifying information;
   

2. 
   ThefilenumberwhichtheOfficeofLabor-ManagementStandardshas assigned it;
   

3. 
   Themailingaddress;
   

4. 
   The beginning and ending date of the reporting period which must be the same as thatofthe reportofthenational organization;
   

5. 
   The names and titles of the president and treasurer or corresponding principal officersas of the end of the reporting period;
   

6. 
   Thenamesandtitles oftheofficersas oftheend ofthereportingperiod;
   
1. 
   At least thirty days prior to first submitting simplified annual reports, the nationalorganizationnotifiestheOfficeofLabor-ManagementStandards, DivisionofReports Processingand Disclosure, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.20210, in writing, of its intent to begin submitting simplified annual reports for affiliated locallabororganizations;
   

5. 
   The national organization files a terminal report on Form LM-3 clearly labeled on the formas a terminal report, for any local labor organization which has lost its identity through merger,consolidation, or otherwise if the national organization filed a simplified annual report on behalfofthelocallabororganizationforitslastreporting period; and
   

6. 
   The national organization assumes responsibility for the accuracy of and submits with itsannual report and the simplified annual reports for the affiliated local labor organizations, thefollowing certification in duplicate properly completed and signed by the president and treasureroftheparentnationalorganization:
   

September,1976(Technical Revisions:Dec.2016)