LOCAL 1942 BY-LAWS

I.     LOCAL 1942 FINANCIAL POLICY

A.   Local Budget

1.     Between October and December of every calendar year it shall be the responsibility of the Local Executive Board to develop a budget to determine Local fund allocations to meet Local 1942's needs.

2.    The proposed budget should appear in the Local 1942 newsletter immediately preceding the membership meeting at which it is to be voted on.

3.     By December, the budget proposal shall be submitted to the membership at a Local membership meeting where it can be accepted, rejected, amended, or a substitute budget can be submitted.

4.     All members shall have access to information on which a budget is based and budget formation process shall be open to all members.

B.   Monthly Financial Reporting

1.     It is the responsibility of the Local 1942 Treasurer to present a written Operating Statement and Balance Sheet to the membership at each monthly membership meeting.

2.     The Operating Statement shall include all revenue and expenditures for the preceding calendar month.

3.     The form of the Operating Statement will follow the format of the locally adopted budget; with all expenditures attributed to the appropriate line item.

4.     In addition to the monthly Operating Statement, there shall be a report of all wages for the preceding month

C.   Responsibility of Executive Board

1.     It is the responsibility of the Local 1942 President and Treasurer (including other officers authorized to sign checks), with approval of the Local 1942 Executive Board, to see that all expenditures are made consistently with the purposes authorized by the adopted Local budget or extraordinary expenditures ordered by the membership at a membership meeting.

2.     Expenditures must be properly authorized and have proper documentation before payment is made.  This must follow the AFSCME Financial Standards Code.

3.     Limitation:  Expenditures for purposes and amounts not authorized in the locally adopted budget or specifically ordered by the membership, cannot be made without prior authorization of the membership at a membership meeting.

D.   Investment Policy

1.      Dues must be deposited directly in a separate dues trust account with Council 24 perthe AFSCME Financial Standards Code.

2.     The checking account must maintain adequate funds to meet daily needs.

3.     No more than $250,000 should be invested in any one U.S. Bank or Credit Union, so that all money is fully insured

4.     Investments are restricted to interest bearing checking accounts and primary Bank or Credit Union Certificates of Deposit

5.     CDARs Certificate of Deposit programs may be used to help maintain individual bank accounts under $250,000

6.     Investments on behalf of Local 1942 can only be made by the Local 1942 President and Local 1942 Treasurer

7.     Any investment not clearly indicated in the above policy guidelines must have advance approval of the Executive Board

8.     Local 1942 must have an annual audit conducted by an independent CPA accounting firm

9.     This policy should be reviewed annually

E.   Capitalization Policy

1.     It is the policy of Local 1942 to capitalize all assets purchased or received by donation that cost $5000 or more individually with an expected life of 3 years or more.  All capitalized assets will be depreciated in accordance with IRS regulations.  Assets purchased or received by donation that cost less than $5000 individually will be expensed in the period purchased.

2.     It is the policy of Local 1942 to capitalize all repairs and improvements to property or leasehold improvements that cost $5000 or more.

F.    IRS 990 Form Disclosure Policy

1.     Local 1942 will allow public inspection of the Forms 990 filed in the last three years.

2.     The inspection will take place during normal business hours of Local 1942.

3.     The person conducting the inspection will be allowed to take notes.

4.     Local 1942 may have a person in the room during inspection.

5.     Local 1942 will not charge a fee for inspection or if the person inspecting brought and used their own photocopying equipment.

6.     If requested, Local 1942 will provide a copy of the Form 990 for a charge of $1.00 for the first page plus $0.15 for each additional page.

7.     Written requests for copies of the Form 990, including mail, email, fax, or private delivery, will be honored.  Local 1942 will charge for actual postage costs.

8.     Payment of charges may only be made by cash, money order, certified check, or personal check.

II.   LOCAL 1942 WAGE POLICY

A.   General

1.     Local 1942 will pay its members for wages only when such wages have proper prior authorization and when the expenditure is necessary for achieving the goals of the local.

2.     Wage payment will normally be granted to officers and stewards for:

a.     Attendance at membership meetings, executive board meetings, and steward meetings.

b.     Steward training - when necessary and given prior approval by the Local 1942 Executive Board;

c.     Preparation of the local newsletter.

3.     Payment for wages will be at $20.00 per hour, except for office staff.  Office staff wages will be set by the Executive Board.

a.     The Executive Board may authorize other local activities which qualify for this provision to achieve the goals of Local 1942. This approval will be made prior to the hours worked, shall be granted for specific tasks only, and will be reflected in the official minutes.

B.   Wage Reporting

1.     A written report of all wages paid shall be made to the membership at the membership meeting following the month in which it is paid.  The report shall include the member's name and the amount of wages.

C.   Authorization of Wages

1.     The Local 1942 President and Treasurer (including other officers authorized to sign checks), with the approval of the Local 1942 Executive Board, may authorize the payment of wages in accordance with the purposes and amounts authorized in the adopted Local budget or ordered by the membership at a Local membership meeting.

2.     Wage payment for purposes not authorized in the Local 1942 budget shall not be granted without prior approval of the membership at a membership meeting.

D.   Applying for Wage Payment

1.     Wage reimbursement shall be applied for on a form provided by Local 1942.

2.     The wage reimbursement form shall clearly indicate the number of hours worked, the purpose for the wages and the total amount of wage, differential, and overtime payment claimed and the date for which it is claimed.

E.   Obligation for Wages and Expenses

1.     For any wage payment other than as an official elected delegate or representative, a member may be required to sign a statement of obligation which will clearly indicate any service the member agrees to perform for the members of Local 1942 in return for wage payment.

F.    Exceptions

1.     Any exceptions to the policy and procedures of this article can only be made with prior approval of the Executive Board and approval at a membership meeting.  The Executive Board decision will stand until overruled at a membership meeting.LOCAL 1942 EXPENSE REIMBURSEMENT POLICY

G.   General

1.     All claims for expense reimbursement must be made on a form provided by Local 1942 and must be accompanied by a receipt.  Reimbursement shall be made only for actual cost incurred.  Receipts will not be required for approved mileage reimbursement or for per diem payments. 

H.   Delegates

1.     Duly elected delegates may claim reimbursement for the following costs:

a.     Travel:  Travel reimbursement to and from out-of-town conventions and conferences shall be made at the maximum non-taxable rate allowed under federal and state laws, provided that every attempt has been made to cooperate with car-pooling arrangements made by Local 1942.  The rate of reimbursement shall be $0.50 per mile. Mileage for in-town conventions and conferences will only be reimbursed for non-work days.  Expenses, such as airline tickets and ground transportation will be reimbursed or prepaid.  In both cases the delegate must submit paid receipts for all expenses incurred.

b.     Per Diem Payments: For overnight conventions and conferences, where distance prohibits leaving and returning home on the same day, delegates will be paid a per diem of $34.00 for full days away from home.  The per diem for first and last day of travel is $25.50.  For out of state travel, full day per diem is $40.00 and first and last travel day per diem is $30.00. Per diems are meant to cover food and incidentals and do not need receipts.  Per Diems are non-taxable for overnight stays when supported by a valid expense report.

c.     Lodging:  Where overnight lodging is required, it will be local policy to reimburse delegates at single occupancy rates at lodgings approved by the Executive Board.  Delegates are required to submit a copy of the hotel bill or other valid proof of occupancy, whether or not Local 1942 prepaid the hotel room.  This also validates per diem payments as non-taxable compensation.

2.     Reimbursement will only occur with a properly filled out Local 1942 expense report and with paid receipts attached.  Meal per diems are the only exception to the requirement of receipts.

I.     Stewards and Officers

1.     Other expenses: Other expenses incurred by stewards and officers necessary for fulfilling their responsibilities may be reimbursed at the discretion of the Executive Board.

J.    Child Care Costs

1.     In the interest of encouraging full participation in all local activities, child care costs will be reimbursed at the rate of up to $5.00 per hour, if paid child care is necessary to allow participation by delegates, stewards, or active members in approved union functions and events. Receipts for child care costs must accompany reimbursement requests, and shall include the signature of the childcare provider, total hours worked, and the amount charged per hour.

K.   Frugality

1.     Cost containment is strongly encouraged.

III. CONFLICTS OF INTEREST POLICY

A.   Procedure

1.     Local 1942 Executive Board Members and staff shall avoid any conflict of interest between their own respective personal, professional or business interests and the interests of Local 1942, in any and all actions taken by them on behalf of Local 1942 in their respective capacities.

2.     In the event that any Officer, Delegate, Committee member of Local 1942 shall have any direct or indirect interest in, or relationship with, any individual or organization which proposes to enter into any transaction with Local 1942, including but not limited to transactions involving:

a.     the sale, purchase, lease or rental of any property or other asset;

b.     employment, or rendition of services, personal or otherwise;

c.     the award of any grant, contract, or subcontract;

d.     the investment or deposit of any funds of the Association;

e.     such person shall give notice of such interest or relationship and shall thereafter refrain from discussing or voting on the particular transaction in which he has an interest, or otherwise attempting to exert any influence on Local 1942, or its components to affect a decision to participate or not participate in such transaction.

3.     The board minutes shall contain the names of the persons who had a conflict of interest, the nature of the financial interest, a summary of the discussion to determine whether a conflict was present and the vote as to whether a conflict was present, the names of the officers present for thee discussion and vote related to the transaction or arrangement, a summary of the discussion, and a record of the vote taken.

IV. WHISTLEBLOWER POLICY

A.   Procedure

1.     If any employee or union member reasonably believes that some policy, practice, or activity of Local 1942 is in violation of law, a written complaint must be filed by that employee with the Executive Board or President.

2.       It is the intent of Local 1942 to adhere to all laws and regulations that apply to the organization and the underlying purpose of this policy is to support the organization’s goal of legal compliance. The support of all members and employees is necessary to achieving compliance with various laws and regulations. A member or employee is protected from retaliation only if they bring the alleged unlawful activity, policy, or practice to the attention of the Local 1942 Board and provides the Local 1942 with a reasonable opportunity to investigate and correct the alleged unlawful activity. The protection described below is only available to employees that comply with this requirement.

3.     Local 1942 will not retaliate against an employee who in good faith, has made a protest or raised a complaint against some practice of Local 1942, or of another individual or entity with whom Local 1942 has a business relationship, on the basis of a reasonable belief that the practice is in violation of law, or a clear mandate of public policy. Local 1942 will not retaliate against employees who disclose or threaten to disclose to Council or a public body, any activity, policy, or practice of Local 1942 that the employee reasonably believes is in violation of a law, or a rule, or regulation mandated pursuant to law or is in violation of a clear mandate or public policy concerning the health, safety, welfare, or protection of the environment.

V.  DOCUMENT RETENTION AND DESTRUCTION POLICY

A.   Purpose

1.     In accordance with the Sarbanes-Oxley Act, which makes it a crime to alter, cover up, falsify, or destroy any document with the intent of impeding or obstructing any official proceeding, this policy provides for the systematic review, retention and destruction of documents received or created by Local 1942 in connection with the transaction of Local business.  This policy covers all records and documents, regardless of physical form (including electronic documents), contains guidelines for how long certain documents should be kept and how records should be destroyed.  The policy is designed to ensure compliance with federal and state laws and regulations, to eliminate accidental or innocent destruction of records and to facilitate Local 1942’s operations by promoting efficiency and freeing up valuable storage space.

B.   Document Retention

1.     Local 1942 will follow the document retention procedures outlined below.  Documents that are not listed, but are substantially similar to those listed in the schedule will be retained for the appropriate length of time.

C.   Local 1942 Records

1.     Articles of Incorporation       Permanent

2.     Executive Board Meeting Minutes     Permanent

3.     Membership Meeting Minutes           Permanent

4.     By-laws       Permanent

5.     Fixed Asset Records           Permanent

6.     IRS Application for EIN (Form SS-4) Permanent

7.     IRS Determination Letter      Permanent

8.     Annual Audits and Financial Statements       Permanent

9.     Depreciation Schedules       Permanent

10.  General Ledgers     Permanent

11.  IRS 990 Tax Forms Permanent

12.  LUFAR and Surety Tax Forms         Permanent

13.  Check Registers      Permanent

14.  Payroll Registers     Permanent

15.  State Unemployment Tax Records   Permanent

16.  Employment and Termination Agreements    Permanent

17.  Retirement and Pension Plan Documents     Permanent

18.  Insurance Policies   Permanent

19.  Real Estate Documents       Permanent

20.  Contracts (after expiration)   7 years

21.  Business Expense Records 7 years

22.  Journal Entries        7 years

23.  Invoices      7 years

24.  Bank Deposit Slips  7 years

25.  Bank Statements and Reconciliation 7 years

26.  Electronic Fund Transfer Documents            7 years

27.  Earnings Records    7 years

28.  Payroll Tax Returns 7 years

29.  W-2 Statements      7 years

30.  Records Relating to Promotion, Demotion or Discharge         7 years after termination

31.  Leases        6 years after expiration

32.  Sales Records Correspondence (general)     5 years

33.  Accident Reports and Worker’s Compensation Records        5 years

34.  Salary Schedules    5 years

35.  Scholarship Applications and Contracts        5 years

36.  OSHA Documents   5 years

37.  Correspondence (general)   3 years

38.  Cash Receipts        3 years

39.  Employment Applications    3 years

40.  General Contracts   3 years after termination

41.  Correspondence (general)   3 years

42.  I-9 Forms    3 years after termination

D.   Electronic Documents and Records

1.     Electronic documents will be retained as if they were paper documents.  Therefore, any electronic files that fall into one of the document types on the above schedule will be maintained for the appropriate amount of time.  If a user has sufficient reason to keep an email message, the message should be printed in hard copy and kept in the appropriate file or moved to an “archive” computer file folder.  Backup and recovery methods will be tested on a regular basis.

E.   Emergency Planning

1.     Local 1942’s records will be stored in a safe, secure and accessible manner.  Documents and financial files that are essential to keeping Local 1942 operating in an emergency will be duplicated or backed up at least every week and maintained off site.

F.    Document Destruction

1.     The Treasurer is responsible for the ongoing process of identifying its records, which have met the required retention period and overseeing their destruction.  Destruction of financial and personnel-related documents will be accomplished by shredding.

2.     Document destruction will be suspended immediately, upon any indication of an official investigation or when a lawsuit is filed or appears imminent.  Destruction will be reinstated upon conclusion of the investigation.

3.     Electronic media, such as hard drives, when no longer needed shall be securely and completely wiped clean of data, and or physically rendered unreadable.

G.   Compliance

1.     Failure on the part of staff or elected officials to follow this policy can result in possible civil and criminal sanctions against Local 1942 and its employees and elected officials and possible disciplinary action against responsible individuals.  The Treasurer and Trustees will periodically review these procedures with legal counsel or Local 1942’s certified public accountant to ensure that they are in compliance with new or revised regulations.

VI. FRAUD POLICY

A.   Policy

1.     The Executive Board and Trustee’s are responsible for the detection and prevention of fraud, misappropriations, and other irregularities.  Fraud is defined as the intentional, false representation, or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury. 

2.     Any irregularity that is detected or suspected must be reported immediately to the President of Local 1942, the Director of Council 24, or AFSCME International.

B.   Actions Constituting Fraud

1.     The terms defalcation, misappropriation, and other fiscal irregularities refer to, but are not limited to

a.     Any dishonest or fraudulent act.

b.     Misappropriation of funds, supplies, or other assets.

c.     Impropriety in the handling or reporting of money or financial transactions.

d.     Misrepresenting the facts when filing for wages or expenses.

e.     Disclosing confidential and proprietary information to outside parties.

f.      Accepting or seeking anything of material value from contractors, vendors, or persons providing services/materials to Local 1942.  Exception:  Gifts less than $50 in value in any given year.

g.     Destruction, removal, or inappropriate use of records, furniture, fixtures, and equipment; and/or

h.     Any similar or related irregularity.

C.   Authorization for Investigating Suspected Fraud

1.     Members of the Investigation Panel will have

a.     Free and unrestricted access to all Local records and premises, whether owned or rented; and

b.     The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of their investigation.

D.   Reporting Procedures

1.     Great care must be taken in the investigation of suspected improprieties or irregularities so as to avoid mistake accusations or alerting suspected individuals that an investigation is under way.

2.     The reporting individual should be informed of the following:

a.     Do not contact the suspected individual in an effort to determine facts or demand restitution.

b.     Do not discuss the case, facts, suspicions, or allegations with anyone unless specifically asked to do so by Local 1942, Council 24, or AFSCME International legal council.

By-laws approved by the Membership: 9/08/98.

By-laws revised by the Membership:  8/10/99

By-laws revised by the Membership: 10/12/99

By-laws revised by the Membership: 1/14/03

By-laws revised by the Membership:  8/9/05

By-laws revised by the Membership:  5/08/2007

By-laws revised by the Membership:  7/08/2008

By-laws revised by the Membership: 12/9/2014