UNIT FINANCIAL POLICIES

The National Organization of Legal Services Workers (NOLSW), UAW Local 2320, AFL-CIO (hereafter referred to as “NOLSW/UAW Local 2320”) is a union embracing more than three thousand members, most of whom work in legal services and human services programs. Under the UAW Constitution NOLSW/UAW Local 2320 is an “Amalgamated Local Union”, which means it is a Local Union representing workers at more than one bargaining unit. In fact, we represent workers at more than one hundred (100) bargaining units across the

USA

. The branch of the union organization existing at the premises of one employer is called a “Unit”. Each Unit has its own officers and conducts its business within the framework of NOLSW/UAW Local 2320. Both NOLSW/UAW Local 2320 and the Units which comprise it are governed by the rules and policies of the International Union UAW, NOLSW/UAW Local 2320 By-Laws, and by federal law.

NOLSW/UAW Local 2320 is the legal “labor organization” under federal law which is responsible for filing annual reports with the U.S. Department of Labor and the Internal Revenue Service. NOLSW/UAW Local 2320 is responsible for collecting dues and fees, administering the affairs of the Union , paying required amounts to the various programs of the International Union, and filing various reports with the International Union. Its financial records are reviewed every six (6) months by the Union Trustees, who are unpaid volunteers elected from the rank-and-file membership.

In NOLSW/UAW Local 2320, there are Units of varying sizes, from less than five (5) members to nearly four hundred (400), in programs with numbers of worksites ranging from a single office up to forty (40) worksites spread around a state or region. The International UAW Auditing Department and the U.S. Department of Labor require NOLSW/UAW Local 2320 to maintain accurate records of Union income and expenses for all of these Units, as well as for expenses incurred nationally, and to file various kinds of reports each year.

In order to comply with UAW policies and U.S. Department of Labor regulations, it is necessary for Unit finances to be properly maintained and reported, so that NOLSW/UAW Local 2320 has accurate information upon which to prepare and file its reports with the International Union, the Internal Revenue Service, the U.S. Department of Labor, and applicable states agencies. Accurate tracking of income and expenses also enables NOLSW/UAW Local 2320 to budget its resources so that the needs of the members can be met across the country, and that a fair allocation of resources is made.

These financial policies have been prepared to provide a means of managing, tracking, and reporting union income and expenses. If you have any questions about any of them, please contact the NOLSW/UAW Local 2320 Financial Secretary/Treasurer, or your regional NOLSW/UAW Local 2320 Organizer.

An Initiation Fee of ten dollars ($10) is paid by a new member when he/she joins NOLSW/UAW Local 2320. Initiation Fees are usually waived for new members who join within the first thirty (30) days following the ratification of the first collective bargaining agreement at a newly organized work site. Check with your Regional Organizer to request waiver of Initiation Fees, which must be approved by the UAW International Union.

Dues in the UAW are established in the International UAW Constitution, which can be amended only by Constitutional Conventions of the International Union (UAW). Dues in the UAW are set at the rate of two hours’ pay per month, or 1.15% of gross pay for salaried workers. Units may, with permission of NOLSW/UAW Local 2320 and the International Executive Board, charge a higher rate of dues to their members, but the minimum required by the UAW is 1.15%. For a member to be in good standing, he/she must be paying dues at the proper rate, and be “current” in their dues, i.e. paid for each month of Union membership up through the current month. Members not paying at least the UAW rate of 1.15% are not in good standing, and therefore lose the right to vote in Union elections, and to be elected to Union office, among other things.

All dues and fees (including any dues paid in excess of the UAW standard rate) shall be sent by the Employer (or in the case of an individual not participating in payroll deduction, by that individual) directly to the NOLSW/UAW Local 2320 Treasurer at the NOLSW/UAW Local 2320 in New York at the following address:

Checks shall be made payable to: “NOLSW/UAW Local 2320”. Accompanying the check should be an accounting setting forth the name of the employee for whom a deduction is made, the employee’s Social Security Number (SSN), the reporting period, the gross wages/salary for the reporting period, and the amount of dues or fees deducted in that period. Dues and fees should be forwarded to NOLSW/UAW Local 2320 no less frequently than monthly. (see “Instructions for Employers” letter, attached) A copy of the dues accounting should also be sent by the Employer to the Unit treasurer, so that the Unit treasurer can monitor the dues situation of his/her Unit.

Units shall NOT receive dues and fees themselves directly from individuals or from an Employer. NOLSW/UAW Local 2320 is the “labor organization” under federal law responsible for receiving and accounting for dues and fees. If a Unit receives dues and fees before sending them to NOLSW/UAW Local 2320, it could give rise to a legal responsibility of the Unit to file annual reports accounting for all dues, fees and expenses to the U.S. Department of Labor, and liability for failure to file such reports in the past. Moreover, under UAW policy all such dues, fees and expenses, and the responsibility for reporting them, are assigned to NOLSW/UAW Local 2320 as the Amalgamated Local Union within the UAW structure.

NOLSW/UAW Local 2320 shall allocate to each Unit that Unit’s share of the dues as set forth in the sections entitled “Unit Funds” below.

Unit Finances Generally

Most expenses incurred for union business are paid from the general fund of NOLSW/UAW Local 2320. These include rent for union offices, purchase of necessary supplies, furniture and equipment, costs of arbitrating grievances, legal fees, conferences, communications, travel, personnel costs for union staff, payments to the International Union, affiliation fees, literature, etc. However, every Unit incurs costs for things that are more strictly local, such as photocopying, food for Unit meetings, phone calls, parking, and a host of other items. NOLSW/UAW Local 2320 allocates its resources in such a way as to reserve a certain amount of income for use by the Units for local expenses. In order to do this, “Unit Funds” are created by which resources allocated for the use of individual Units are made available to the Units and are tracked for reporting and budgeting purposes.

Income

Unit Dues Income. Income attributable to individual Units shall include ten percent (10%) of the total dues received on behalf of each Unit. For Units covering a large geographic area, and which incur significant transportation expenses for Unit business, income attributable to the individual Unit shall include twenty percent (20%) of total dues received on behalf of the Unit. For Units that have voted to charge themselves a dues rate in excess of the UAW standard rate, income attributable to the individual Unit shall include any amounts received on behalf of the Unit in excess of the standard UAW rate.

Other Unit Income. Other income received by or on behalf of individual Units, including contributions, sales of tee-shirts or other merchandise, etc. shall be recorded as income attributable to individual Units. Any interest earned from bank accounts where Unit Funds are maintained shall also be recorded as income attributable to individual Units, proportionately allocated to each Unit based on the total amount of each Unit Fund maintained in such bank accounts.

Allowable Unit Expenses are those which are necessary for the conducting of Unit business on behalf of the membership, within the parameters of the NOLSW/UAW Local 2320 and Unit budgets, and which otherwise conform to the UAW Ethical Practices Codes and policies of the International Union. Units maintaining their own petty cash accounts are not required to seek prior authorization from NOLSW/UAW Local 2320 for allowable expenses, provided that total expenditures do not exceed the limits set forth in Paragraph I.B.9, above. Units electing not to maintain their own petty cash accounts shall be reimbursed for allowable expenses up to the limits set forth in Paragraph I.B.9, above, but expenditures of $100 or greater will not be reimbursed by NOLSW/UAW Local 2320 unless the Unit obtains prior approval for the expenditure from the Local Union Financial Secretary/Treasurer.

A Unit may seek reimbursement directly from NOLSW/UAW Local 2320 for allowable Unit expenses. Ordinarily, reimbursement checks shall be issued by NOLSW/UAW Local 2320 within one month of receipt of the reimbursement request, provided that the Unit requesting the reimbursement has adequately documented the request and, if subject to semi-annual reporting, the Unit has filed the required reports through the most recently completed calendar six-month reporting period.

Expenses incurred for local Unit business shall be recorded as expenses attributable to the individual Unit involved.

Unit Funds

The UAW Auditing Department requires that all funds for Units of Amalgamated Local Unions (including NOLSW/UAW Local 2320) be maintained by the Amalgamated Local Union centrally, except for small, properly maintained petty cash accounts. This means that funds generated by Units of NOLSW/UAW Local 2320 must be maintained in the NOLSW/UAW Local 2320 central account, except for small, properly maintained petty cash accounts which may be held by the Units at their various locations, subject to reporting requirements set forth below. All accounts for use by Units must be monitored and reported by NOLSW/UAW Local 2320 to the U.S. Department of Labor, whether they are maintained in the NOLSW/Local 2320 central account, or maintained in a unit petty cash account, or both. The funds set aside for use by Units shall be referred to as “Unit Funds”, and a Unit’s “Unit Fund” includes both the account which is maintained centrally by NOLSW/UAW Local 2320 for the Unit (“Centrally Maintained Unit Account”), and, if the Unit chooses to have one, the Unit’s Petty Cash Account. NOLSW/UAW Local 2320 shall maintain a separate Unit Fund for each Unit, based on actual income and expenses attributable to individual Units. NOLSW/UAW Local 2320 shall provide semi-annual statements to each Unit detailing activity recorded under its Unit Fund for the preceding calendar six-month reporting period.

NOLSW/UAW Local 2320 shall allocate to the Unit Fund for each Unit which is in compliance with these financial policies, on a semi-annual basis, an amount equal to the Unit’s share of the total dues at the UAW standard rate, which have been received by NOLSW/UAW Local 2320 for the preceding six-month reporting period, up to the maximum accumulation amount.

A Unit may obtain reimbursement for its allowable expenses paid from it share of the dues paid at the UAW standard rate by submitting an Expense Reimbursement Form, along with the original receipt, invoice, or other proof of expense for each reimbursement requested. Reimbursements or payment of Unit expenses shall be made from Unit Fund of the applicable Unit.

A Unit shall not be entitled to reimbursement for any expense(s) that exceed the balance remaining in its Unit Fund, unless the Unit receives prior approval from NOLSW/UAW Local 2320 to incur such expense(s), nor shall a Unit spend in a three-year period more than three years’ accumulation of its share of the total dues paid at the UAW standard rate. A Unit whose members have voted to charge themselves a dues rate which is higher than the UAW standard rate may spend up to the full amount of excess dues in its Unit fund, however a Unit shall not receive reimbursement for expenses paid from amounts in its Unit Fund based upon dues paid in excess of the UAW standard rate.

The maximum amount which may accumulate in a Unit Fund shall not exceed three years’ accumulation of the Unit’s share of total dues at the applicable rate, which is ten percent (10%) of the total dues paid at the UAW standard rate for most units, and for Units covering a large geographic area, and which incur significant transportation expenses for Unit business, the rate is twenty percent (20%) of total dues paid at the UAW standard rate, plus dues paid by Unit members in excess of the UAW standard rate.

A Unit which has already accumulated amounts in excess of three years’ accumulation of the UAW standard dues rate in its Unit accounts created prior to the implementation of these policies (January 1, 2003) shall be “grandfathered”, i.e. the maximum amount which it may accumulate in its Unit Fund shall be the amount in the Unit’s Fund at the time of implementation of these policies, plus dues paid by Unit members in excess of the UAW standard rate. Amounts accumulated from dues paid in excess of the UAW standard rate may be maintained in a separate account, either in the Unit’s Centrally Maintained Account or as part of the Unit’s Petty Cash Account.[1]

If the amount of money in the Unit’s Unit Fund attributable to dues paid at the UAW standard rate exceeds the Maximum Accumulation Amount, no reimbursements shall issue to the Unit until the balance of the Unit’s Unit Fund falls below the Maximum Accumulation Amount. If the amount of money in the Unit’s Unit Fund attributable to dues paid at the UAW standard rate is less than the Maximum Accumulation Amount, NOLSW/UAW Local 2320 will reimburse the Unit for its allowable expenses until the balance of the Unit’s Unit Fund reaches the Maximum Accumulation Amount.[2]

Centrally Maintained Unit Accounts

Centrally Maintained Unit Accounts shall be maintained, either individually or collectively, in bank accounts separate and distinct from the General Fund of NOLSW/UAW Local 2320. Individual Units with a Unit Fund exceeding $25,000 may request that NOLSW/UAW Local 2320 maintain their Centrally Maintained Unit Account in an interest-bearing bank account separate and distinct from other Unit Funds. To the extent reasonably practicable, and if permitted under UAW policy, such Units may designate a local bank where such account shall be maintained.

Unit Petty Cash Accounts

Individual Units shall have the option of maintaining a petty cash account for payment of allowable Unit expenses. Units electing to maintain their own petty cash accounts must comply with Department of Labor, UAW and NOLSW/UAW Local 2320 requirements as follows:

1. Unit Petty Cash Accounts shall be established as checking accounts at insured financial institutions (bank, credit union, etc.) in the name of “(name of unit), a Unit of NOLSW/UAW Local 2320, AFL-CIO”, and shall use the federal Employer Identification Number (EIN) of NOLSW/UAW Local 2320. (See “NOLSW EIN Authorization Letter”, attached.) (Note: It is absolutely prohibited for Union funds to be placed in a personal account, or commingled with personal funds. Any Union officer or member holding Union funds in a personal account or commingling such funds with personal funds is in violation of the law and UAW policy, and is subject to potential civil and criminal penalties.)

2. In setting up the Unit Petty Cash Account, the Unit officers shall execute such documents as are required by the financial institution to authorize the Financial Secretary/Treasurer of NOLSW/UAW Local 2320 to access, freeze or close the Unit Petty Cash Account.

3. Duplicate periodic statements of account shall be sent directly from the financial institution to the Unit and to the Financial Secretary/Treasurer of NOLSW/UAW Local 2320.

4. Units shall require the signatures of at least two Unit officers on every check, one of which shall be the Unit Treasurer. When Unit officers change, the Unit shall execute new signature cards for the financial institution, and shall promptly send copies of the same to the Financial Secretary/Treasurer of NOLSW/UAW Local 2320.

5. Unit Treasurers shall maintain copies of actual receipts, invoices or other proof of expense for all checks written from the account. Original receipts, invoices and other proof of expenses shall be submitted to NOLSW/UAW Local 2320 with the Unit’s semi-annual reports. (see “Mandatory Unit Reports”, below)

6. Unit Treasurers shall make semi-annual reports to the NOLSW/UAW Local 2320 Financial Secretary/Treasurer as provided in “Mandatory Unit Reports”, below.

7. Inactive or improperly maintained Unit Petty Cash Accounts shall be subject to being frozen or closed by the Financial Secretary/Treasurer of NOLSW/UAW Local 2320, and funds from closed accounts shall be transferred to the Centrally Maintained Unit Accounts of NOLSW/UAW Local 2320. If such accounts are so frozen or closed, the Financial Secretary/Treasurer of NOLSW/UAW Local 2320 shall promptly notify the Unit Treasurer of the freezing or closure, and the reasons therefor.

8. Units may seek reimbursements for allowable expenses incurred in the previous six-month reporting period by submitting a Reimbursement Request Form, along with original receipts, invoices, or other proof of expense, to the NOLSW/UAW Local 2320 Financial Secretary/Treasurer. Ordinarily, reimbursement checks shall be issued by NOLSW/UAW Local 2320 within one month of receipt of the reimbursement request, provided that the Unit requesting reimbursement has adequately documented the request and has filed the required report for the most recently completed calendar quarter.

9. Except as provided in paragraph 10 below, the total amount a Unit may maintain in its Unit Petty Cash Account may be up to, but not more than, ten percent (10%) of the total annual dues paid by members of the Unit in the previous calendar year at the UAW standard rate. For Units covering a large geographic area, and which incur significant transportation expenses for Unit business, the total allowable Petty Cash amount shall not exceed twenty percent (20%) of total annual dues paid at the UAW standard rate.

10. A Unit whose members have voted to charge themselves a dues rate which is higher than the UAW standard rate may, in addition to the amounts set forth in paragraph 9 above, maintain in their Unit Petty Cash Accounts an amount equal to the dues paid in excess of the UAW standard during the previous calendar year.

11. If permitted by the UAW International Union, a Unit which has been “grandfathered”, as set forth above in the section entitled “Maximum Accumulation Amount”, may maintain in its Unit Petty Cash Account the full amount of the grandfathered funds. As the Unit expends these funds, NOLSW/UAW Local 2320 will reimburse the Units, but reimbursements shall be allocated to the Unit’s Centrally Maintained Unit Account (see above), rather than being transferred to the Unit Petty Cash Account.

Mandatory Unit Reports

NOTE: U.S. Department of Labor reporting requirements are becoming increasingly detailed and complex. In order to comply with federal law, NOLSW/UAW Local 2320 must make annual reports on the finances of both the National Union and all of its Units. In order to make this possible, it is imperative that Units fully and regularly report their income, expenses, and petty cash account balances (if any) to NOLSW/UAW Local 2320, in accordance with the following reporting requirements:

Any Unit wishing to maintain a Unit Petty Cash Account must must make semi-annual reports to the NOLSW/UAW Local 2320 Financial Secretary/Treasurer on forms provided by NOLSW/UAW Local 2320. On each report form, the Unit Treasurer shall report Unit expenditures for the preceding six-month reporting period. If no expenditures have been made during the reporting period, the Unit Treasurer must still file the semi-annual report indicating no expenditures.

Unit Reports are due in the national office of NOLSW/UAW Local 2320 within one month following the end of the semi-annual reporting period, as follows:

Reporting Period Report Due

January 1 – June 30 July 31

July 1- December 31 January 31 (of following year)

All Unit Treasurer semi-annual reports shall be sent to the Financial Secretary/Treasurer of NOLSW/UAW Local 2320 at the NOLSW national office, to arrive no later than the applicable due date, above.

A Unit which fails to make the Mandatory Unit Reports in a timely manner, or which fails to keep the NOLSW/UAW Local 2320 Financial Secretary/Treasurer updated as to the names, addresses, and contact information of its Unit officers (see following section) will not be entitled to maintain its own unit petty cash account. Any existing petty cash account shall be closed and its assets shall be transferred to the unit’s Centrally Maintained Unit Account. Unit members incurring expenses on behalf of the Unit shall then obtain reimbursement from NOLSW/UAW Local 2320 directly.

Unit Information to be Provided and Updated Regularly to NOLSW/UAW Local 2320

All Units must provide the NOLSW/UAW Local 2320 Financial Secretary/Treasurer with the name, work address, work phone number, work FAX number, and email address(es), home address and home phone number for all Unit officers, including, but not limited to, the following officer positions or their equivalents:

In the event of changes in these positions or the members occupying them, the Unit Chairperson or Secretary must promptly notify the NOLSW/UAW Local 2320 Financial Secretary/Treasurer.

Forms & Documents

[1] If the amounts accumulated from dues paid in excess of the UAW standard rate are contained in the same account as dues accumulated from the Unit’s share of dues paid at the UAW standard rate, the amount of said account attributable to excess dues shall be calculated as follows, and the ratio so established shall be used to determine which the percentage of Unit expenses are attributable to its dues from the UAW standard rate, and are attributable to dues charged in excess of the UAW standard rate:

1. Calculate the amount of the Unit’s share of the dues paid at the UAW standard for the three-year period prior to the implementation of the financial policies.

2. Calculate the amount of the Unit’s excess dues paid above the UAW standard for the three-year period prior to the implementation of the financial policies.

3. Divide the amount in line #1, above, by the sum of the amounts in lines #1 and #2,above, and express as percentage.

4. Multiply the balance of the Unit’s Unit Fund by the percentage from line #3, above.

The amount from line #4 is the amount of the Unit’s Unit Fund which is attributable to dues paid at the UAW standard rate.

[2] Example:

Year 1: A Unit’s three year accumulation is $3000 ($1000 per year), but they have $5000 at the time of implementation. The maximum size of their Unit Fund will be “grandfathered” at $5000. As the Unit spends from its Unit Fund, NOLSW/UAW Local 2320 will replenish the Unit Fund in the Centrally Maintained Account at the rate of 10% (or 20% in case of a Unit spread out over a large area) of the Unit’s dues per six-month reporting period. If the Unit spends $1000, NOLSW/UAW Local 2320 will replenish the Unit’s Unit Fund at the rate of $250 per six-month reporting period.

Year 2: The Unit spends another $1000. NOLSW/UAW Local 2320 will replenish the Unit Fund again at the rate of $250 per six-month reporting period. When the Unit’s Petty Cash Account drops below $1000, NOLSW/UAW Local 2320 will reimburse actual expenses by sending a check to the Petty Cash Account.