National Air Traffic Controllers Association

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National Air Traffic Controllers Association

• Secretary/Treasurer Training

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Instructors

• Ruth Marlin
• NATCA Executive Vice President
• Dale Wright
• NATCA, National Finance Committee
• Greg Llafet
• Director, NATCA Training

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National Finance Committee(NFC)

• Chartered as standing committee
• Duties
• Present and approve budget to NEB each year
• Conduct audits/reviews of national, regional and
  local finances
• Assist FacReps and locals with financial
  questions
• Ensure locals are in compliance with DoL and
  NATCA regulations and policies

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NFC Audits

• Most audits requested by new officers
• NFC never arrives unannounced
• Coordinates with FacRep for date
• Advises what information will be needed
• Report goes to EVP, RVP and FacRep
• If audit requested by individual they will
  receive a copy of the report
• NFC works with local to ensure compliance
• Some audits have taken up to 10 months to complete

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Goals/Objectives

• Improve knowledge of Department of Labor (DoL)
  laws, guidelines and rules
• Improve knowledge of NATCA guidelines and rules
• Improve efficiency of local record-keeping
• Improve consistency between NATCA local financial
  policies

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Reference Materials

• NATCA Constitution/Bylaws
• NATCA Expense policy
• NATCA FacRep Training presentation
• Compliance Audit Program (CAP)
• NATCA NFC Roster
• DoL handouts
• Guide to Small Local Auditing
• DoL Internet site

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NATCA Financial Organizational Chart
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Chapter 1

• Initial Setup

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Initial Financial Review

• Review all previous records
• Local Constitution/National Constitution
• Local financial reports
• Local meeting minutes
• Local vouchers
• LM3 or LM4 forms
• Locals signature card with bank
• Who can sign checks!

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Initial set-up

• Local Vouchers
• National Format if able
• Store in organized fashion
• Ensure receipts are attached
• Ensure voucher is complete and correct prior to
  reimbursement
• No person shall sign all signature lines on the
  voucher
• This ensures check and balances

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Person authorizing voucher should be different
that person filing the voucher. Receipts shall
be taped to the back of the voucher or attached
on a separate sheet of paper.
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Initial Setup 2

• Checking and Savings Account
• Who is authorized to sign
• What are accounts for
• Have signature card at the bank updated as soon
  as possible
• Remember double signatures are required on checks
  as mandated by the National Executive Board

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Initial set-up 3

• Method of tracking financial matters
• Computer program if able (Quicken, M/S Money,
  Excel Spreadsheet, etc)
• Local expense categories
• Up to Local
• Suggest local consider categorizing the expenses
  that line up with the appropriate LM form
• Allows for easier tracking in accordance with DoL
  rules for LM forms
• Excel spreadsheet that breaks out expenses by
  project, category, Block 24 of LM3 requirements,
  and LM3 categories will be emailed to class.

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Initial set-up 4

• Local Inventory of Asset list
• Membership Reports
• Use computer program to provide a financial
  report for all membership and Executive Board
  Meetings
• Keep copies of the report for the end of year
  package
• At the end of each year all financial information
  for the local shall be organized and stored for
  at least five years
• Reports shall be made available to the membership

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PETTY CASH

• Requires secure location for cash box
• All funds must be accounted for and verified
  frequently
• Money transfers shall be logged
• Receipts shall be kept for ALL expenses
• Some type of small voucher shall be used
• Regular voucher can be used if local so desires
• Person receiving cash must sign for cash

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ACCEPTANCE OF RECORDS

• Review of records complete
• Review all previous years records
• Ensure LM forms/IRS 990 are present
• Review previous financial reports
• You have accepted the financial information from
  the previous Secretary/Treasurer
• SIGN A WRITTEN RECORD OF THE INFORMATION YOU HAVE
  RECEIVED
• One copy for the person you are replacing
• You keep the original

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Chapter 2

• Income and Expenses

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Dues Rebate Checks

• Local receives 10 of dues paid by their
  membership for operating the local or 450.00 per
  quarter whichever is more
• Checks arrive every quarter, usually February,
  May, July and October
• Deposit checks as soon as possible and keep the
  deposit slip along with the check stub
• NATCA National offers direct deposit for every
  local. Forms will be emailed to all class
  participants.

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Other Income

• All income to local must be documented
• Golf tournaments, coke funds and other charity
  events are still considered as income
• Receipts should be given for income
• A small receipt book should be available
• If a member is collecting money for the local
  they shall also be on the list to be bonded.
  Contact the national office to add a person to
  your local bond.

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Coke/Snack Funds

• Local must track income from sales if money is
  placed in local account or the local has any say
  in where money is spent.
• Local must have documentation for all expenses if
  involved in fund. This includes record of cash
  received and receipts for purchases.
• May be run as a cash account but there shall be
  accounting of the funds. Suggest a monthly
  report from the person who is running the fund.

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Receipts

• Original receipts required
• Shall include location, date and reason for
  expense
• Meal expense receipts shall include persons at
  meal
• NATCA National only pays for one drink at meal.
  Locals may have own policy but shall understand
  they can be held liable due to alcohol related
  situations if local pays for alcohol.
• If per diem used by local then documentation
  shall be attached. Documentation can be
  reference meeting minutes or the copy of a page
  from meeting minutes outlining the local policy
• Cab receipts shall include all parties riding
• For charity activities a letter from the charity
  stating amount of donation may be used

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Receipts
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Per diem or receipts for meals?

• A local decision
• SHALL be in writing if per diem in constitution
  or meeting minutes
• Should only use one method for consistency
• If using the government rate must update the file
  each time it changes
• If a person has more than 600.00 per year in per
  diem an IRS1099 shall be given

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Reimbursements

• Voucher shall be filed and approved prior to
  reimbursement unless it is a cash advance
• Cash advance rolls over to a loan if not repaid
  within 30 days
• Mileage claims shall have odometer readings
• Reimbursement shall be for the amount vouchered
  (no deals of rounding up)
• Check requires two signatures

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Loans

• Require proper documentation such as Exec. Board
  approval
• Requires letter of repayment which shall be
  signed prior to loan disbursement
• Exec. Board will be held responsible if not
  repaid
• All actions shall be in writing (ex. late
  payment notification/ bad checks, etc.)

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Sample loan letter
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Sample Loan Repaid Letter
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Golf TournamentsCharitable Donations

• If the union is responsible for the funds
• Documentation of board approval
• Receipts for income and expenses
• Letter from charity accounting for donation
• Income shall be noted on LM form
• LM3 has a block for donations to account for
  expenses
• If the union is not involved or depositing any
  monies then there is no action required

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Chapter 3

• Yearly forms to be filed
• Department of Labor Forms
• IRS990
• Local affidavit

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LM4

• This is for locals who receive less than
  10,000.00 in receipts during the year
• Original signatures shall be on the forms sent to
  the DoL
• If local makes any changes to their constitution
  during the year two copies shall be sent to the
  DoL and one to the National Office when LM form
  is mailed

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LM3

• Local files this form when receipts total
  10,000.00 up to 200,000.00
• Original signatures are required on forms sent to
  the DoL along with date
• Form revised in 2000 with green blocks shall be
  used
• Due 90 days from end of fiscal year
• If due date is on weekend then report is due the
  Friday before
• NO EXCUSES FOR LATE FILING!!!

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LM3 (cont)

• Copies of constitution shall be sent to the DoL
  and the National Office if there are any changes
  made during the year
• Locals that file an IRS 990 are still required to
  file a LM-3
• Common mistake on this form is block for officer
  disbursements
• All expenses paid directly to an officer shall be
  noted in block 24 of the form beside the name of
  the officer. This will be covered more during
  the internet demonstration.

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IRS 990

• For locals with assets and receipts more than
  25,000.00
• Must still file LM3
• The group number is 3854
• Remember income from other than dues rebate may
  result in local having to file this form
• Copy shall be sent to the national office

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Affidavit

• For locals with less than 25,000.00 in assets
  and receipts
• Should receive affidavit from national office
  prior to February 15th of each year
• Must be returned no later than March 31st of each
  year
• A good time to send a local officer worksheet in
  with updated information

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Local Affidavit example
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Chapter 4

• Agendas/Meeting Minutes

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Agendas

• Posted in timely manner for membership to review
• Bullet listing of subjects
• Provide opportunity for input
• List date, time and location of meeting

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Agenda Example
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Meeting minutes

• NOT AN OPTION! SHALL HAVE MINUTES FOR
  MEETINGS!!!
• Required to track financial decisions of
  membership and Local Executive Board
• Executive Board minutes shall log all votes and
  indicate what way each member voted
• Minutes shall be dated so references from
  vouchers can be easily verified
• Minutes shall have original signature and dated
• Softcopies are not acceptable as primary
  documentation due to no original signature

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Example of Minutes
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Filing of Minutes

• Keep at facility in secure location
• Must be available to membership
• Keep in orderly fashion
• Good idea to put in sheet protectors
• Must reflect accurate accounting of Executive
  Board or membership votes

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Chapter 5

• Suggestions and recommendations

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Importance of Record-keeping

• Department of Labor guidelines are very strict.
• Local officers must understand the DoL and NATCA
  rules SHALL be followed.
• President Bushs administration has stated the
  intent to hire more DoL auditors to ensure unions
  have proper accounting of their finances. The
  press release said a focus would be placed on
  small union locals with volunteer officers. This
  is the type of local structure utilized by NATCA.
  ZMP was audited on September 13, 2002.

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Record Keeping

• Vouchers shall be used
• National voucher design should be used
• EVERY check / expense shall have a voucher
• DOL always requires a receipt unless per diem
• Per diem policy must be in writing in meeting
  minutes or Constitution
• If local uses per diem documentation shall be
  attached to voucher
• Locals shall have an inventory list on file of
  all fixed assets

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Record Keeping (cont)

• Locals shall keep check stubs or electronic
  deposit verification from national office checks
• Records shall be available to members
• Records should be kept in a secure location at
  the facility if possible
• End of year reports should be filed together and
  readily available for inspection
• Keep DoL records for at least five (5) years

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Caution For Locals

• Political donations/contributions are prohibited
  from dues money
• Local PAC funds must be sent to National Office
  for disbursement
• Treat locals like small business
• FACREPs are responsible for the financial
  dealings of the local
• A list of financial information should be
  exchanged when officers of local change.
  Outgoing rep should have incoming rep sign for
  the records exchanged.
• Smaller facilities must follow strict budgets in
  order to attend NATCA Conventions

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DoL Tips and NATCA local issues

• Retention of union records
• Bonding
• Internal Financial Controls
• Problems observed during NFC audits
• Compliance Audit Program (CAP)

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LMRDA Compliance tip 1Retention of Union Records

• Must be kept for five years
• Payment receipts for all union expenditures
• Credit card slips and itemized receipts for each
  credit card charge
• Union copy of bank deposit slips
• Internal union financial reports and statements
• Minutes of all membership and Executive Board
  meetings

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LMRDA Compliance Tip 2Bonding Requirement

• Bonding is required to insure the union against
  fraud or dishonesty
• Law states any person who handles union funds
  must be bonded for at least 10 of funds if local
  has more than 5K in assets and deposits.
• Anyone who can sign local checks shall be bonded
  if the local qualifies
• All NATCA locals have 5,000.00 bond from
  national policy. Locals with more that 50K
  shall have additional bond for amount over 50K
  or if they wish more coverage.

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LMRDA Compliance Tip 3Internal Financial
Controls

• Outlines suggestions to local Executive Boards
• Local should issue receipts to members for all
  amounts collected (if local dues are in affect)
• Officers maintain receipts and disbursements
• Deposit funds on regular and frequent basis
• Ensure full understanding of Executive Board and
  financial expenses

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Internal Financial Controls Cont.

• Require double signature on checks
• Only exception is one member locals
• Full financial reports at each membership and
  Executive Board meeting
• Prior authorization for unusual or large
  expenditures
• Establish internal audit committee
• Review audit controls periodically

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Compliance Audit ProgramCAP

• DoL contacts local for CAP audit
• Random
• Failure to file required forms
• FacRep sets up audit time and location
• Advise Regional NFC Representative
• DoL sends checklist
• Audit performed
• DoL may sign for records
• Exit interview
• Will advise what needs correcting
• If records warrant, legal action maybe taken

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National Finance CommitteeRoster