Annual Audit & LM Reports
Annual Audit of Local Union Books
During the month of October each Local shall cause an annual audit, which shall be no less than an audit or review of the books, records and accounts of the Local Union covering the fiscal year ending September 30th. Such annual audit shall be performed by a qualified person, outside the Local Union as determined by the Local Executive Board. Such audit or review report shall, no later than the last day of February of each year, be sent to the Sector President and the Sector Regional Vice President for the Region. Such audit or review shall also be made in the event of a change of Local Treasurer or Secretary-Treasurer, unless such audit is already being conducted for another reason. The Sector President may, at any time, order an audit of a Local Union's books, records and accounts by a Certified Public Accountant in which case the audit or shall be paid for by the Sector.
Locals with 100 or fewer active members or total assets of $60,000.00 or less as reported to the Department of Labor are only required to perform an annual Compilation of the books (conventionally known as a Compiled Financial Statement). However, the Sector President may require an audit or review of such Locals. If required, the Sector shall pay 80% of the cost of the audit or review. In addition, upon request, the Sector Executive Council shall give due consideration based upon hardship for partial or total reimbursement for such audits or reviews for Locals with more than 100 active members and total assets of more than $60,000.00, as reported to the Department of Labor.
Office of Labor-Management Standards (OLMS)
Form LM-2 Labor Organization Annual Report
Every labor organization subject to the Labor-Management Reporting and Disclosure Act, as amended (LMRDA), the Civil Service Reform Act (CSRA) standards of conduct regulations, or the Foreign Service Act (FSA) must file a financial report, Form LM-2, LM-3, or LM-4, each year with the Office of Labor-Management Standards (OLMS) of the U.S. Department of Labor.
The three forms vary in the level of financial details that must be reported. The filing requirements are determined by the total annual receipts of the union. The term "total annual receipts" means all financial receipts of the labor organization during its fiscal year, regardless of the source, including receipts of any special funds as described in Section VIII (Funds To Be Reported) and as described in Section X (Labor Organizations With Subsidiary Organizations). The Form LM-2 is required for labor organizations with $250,000 or more in total annual receipts. To determine which form your labor organization must file, please visit here.
The Form LM-2 must be filed electronically using the OLMS Electronic Forms System (EFS). EFS is a web-based system for completing, signing, and submitting Labor Organization Annual Financial Reports. EFS allows a labor organization with a web-enabled computer the ability to acquire, complete, sign, and electronically file a Form LM-2 report without purchasing a digital signature or downloading special software.
Access the OLMS EFS here to register for the system and obtain, work on, or sign and submit your Form LM-2 report.
Please note: OLMS has disabled the Adobe forms system.
If you have questions about this or need help getting started with EFS, please call the OLMS Software Help Desk toll-free at 1-866-401-1109.
If a labor organization experiences unanticipated technical difficulties that prevent the timely preparation and submission of an electronic filing of the Form LM-2, the labor organization may be eligible for a temporary or continuing hardship exemption.
Call OLMS at 202-693-0123 or send an email to OLMS at http://www.dol.gov/olms