Unions filing Form LM-3 (those unions with $10,000 or more but less than $250,000 in annual receipts) should always use the cash reconciliation worksheet in the Form LM-3 Instructions to ensure that they have correctly reported the figures for receipts, disbursements and cash on their LM-3. The worksheet should be used every year prior to filing the form.
The worksheet requires you to perform the following calculation from information in the completed Form LM-3:
1. Cash at start of reporting period (item 25, column A) plus
2. Total receipts (item 44) minus
3. Total disbursements (item 55)
The result of the calculation should be the same as the amount reported in item 25, column B (Cash at end of reporting period). If the result of the calculation does not equal cash at the end of the reporting period, you need to carefully check each of these totals; frequently, the problem occurs because you have not been completely reconciling your monthly bank statements with your checking account balances.
Unions who use EFS (Electronic Forms System) to file their Form LM-3 do not have to use this worksheet, as this step is automatically built into the validation process. Before the president and treasurer can attach their electronic signature to the completed Form LM-3, they must complete a validation procedure which identifies any incomplete entries, and notifies the user if the cash balance does not reconcile. Once again, EFS can simplify your LM-3 reporting process.
For more information about using EFS to file your Form LM-3, visit http://www.dol.gov/olms/regs/compliance/efs/efshelp.htm.
John Lund is the Director of the Office of Labor-Management Standards.