Duties and Responsibilities of a Local Union Treasurer November 2009

1. Duties and Responsibilities of a Local Union Treasurer November 2009

2. Duties and Responsibilities of a Local TreasurerPart 1: The Basics The treasurer • Manages the local’s finances

3. Duties and Responsibilities of a Local TreasurerPart 1: The Basics The treasurer • Manages the local’s finances • Files the paperwork required by the federal government

4. Duties and Responsibilities of a Local TreasurerPart 1: The Basics The treasurer • Manages the local’s finances • Files the paperwork required by the federal government • Files the paperwork required by the national union

5. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Step 1: Get bonded Bond: To obtain a surety policy on officers who will have access to your local’s finances if your local has property or annual receipts of more than $5,000

6. Duties and Responsibilities of a Local TreasurerPart 1: The Basics The Department of Labor website has more information about bonding on this page

7. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Step 2: Take custody of the local’s bank records, checkbook, ledgers and other financial records (Tip: These records must be saved for five years)

8. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Keep the local’s financial records, including check book, bank statements, receipts, invoices and correspondence, in a locked drawer, cabinet or other secure area within the local’s permanent office-- not your home

9. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Step 3: Change the bank account so that you and the president or designated officer may conduct the local’s banking The national union requires the local to use two signatures on every check from the local treasury

10. Duties and Responsibilities of a Local TreasurerPart 1: The Basics To change the bank account, you MUST use an Employer Identification Number… NOT a personal Social Security number To get an EIN, you can download our EIN.pdf at the end of this training or visit the IRS webpage about EINs

11. Duties and Responsibilities of a Local TreasurerPart 1: The Basics The national union does not allow locals to use ATM cards Locals may request a waiver to this policy from the national president Use of petty cash fund is discouraged; if necessary, keep less than $100 and document every expenditure properly

12. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Submit copies of financial records to national union auditor every six months Auditor will contact you for records

13. Duties and Responsibilities of a Local TreasurerPart 1: The Basics You will be responsible for these filings:

14. Duties and Responsibilities of a Local TreasurerPart 1: The Basics You will be responsible for these filings: • The LM form with the DOL: You will file an LM 4 if your local’s annual receipts are under $10,000, or an LM 3 if your local’s annual receipts are between $10,000 and $250,000.

15. Duties and Responsibilities of a Local TreasurerPart 1: The Basics You will be responsible for these filings: • The LM form with the DOL • The Form 990 with the IRS: You may file the electronic postcard version (990-N) if your local has annual receipts of less than $25,000. If your local has annual receipts of more than $25,000, you will file the 990-EZ.

16. Duties and Responsibilities of a Local TreasurerPart 1: The Basics DOL and IRS forms will have separate training. Helpful links: • DOL Guide to LM-3 • DOL Guide to LM-4 • IRS Training on 990_EZ • IRS page on 990-N • Slideshow on completing Form 990-N

17. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Handling the local’s money: Make sure that all of the money coming in and going out is accounted for Make sure that all of the money the local spends is spent in the members’ best interest

18. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Make sure that all of your union expenses are: • Authorized • Documented • Explained

19. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Authorized: Every expenditure requires authorization consistent with your bylaws and the principle of democratic decision-making, such as a motion passed at a local meeting or a vote taken by your local executive board

20. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Documented: Every expenditure should have documentation, such as a bill or receipt Anyone authorized to spend the local’s money should give you a receipt or bill for the expenditure

21. Duties and Responsibilities of a Local TreasurerPart 1: The Basics Explained: Whenever you record an expenditure, make sure you explain it for future reference Good examples: “Monthly bill for union office telephone” or “Little League sponsorship” Bad examples: “Assorted,” “other,” “office stuff”

22. Duties and Responsibilities of a Local TreasurerPart 1: The Basics You can find helpful tips on local finances and other help for small unions at this DOL webpage