There are a lot of responsibilities that must be addressed as part of a union officer election. An important activity to keep on your radar is helping newly elected officers transition into their positions; this is especially important when there’s a newly elected treasurer.

Given a treasurer’s responsibility for a local’s financial well-being and compliance, preparing a transition plan in advance of an election puts you in the position to help a new treasurer acclimate quickly while maintaining member trust and loyalty.

To prepare for a potential transition in treasurers, explore resources your parent union may have available, including the union’s constitution (which typically defines duties), leadership handbooks, financial standards, and training focused on a treasurer’s responsibilities and financial guidance for union leaders.

Create a “toolkit” that you can share with a newly elected treasurer, so they quickly get up to speed on responsibilities, have an opportunity to ask questions, prepare to lead, and ensure compliance. In addition, consider whether the following actions can support the transition:

1. Plan ahead. The incumbent treasurer should update documentation regarding key processes, responsibilities, and relevant financial information, and prepare to hand off/transfer key items like bank accounts, checkbooks, and credit cards.
2. Knowledge transfer. A knowledge transfer process will allow time for the outgoing and incoming treasurers to discuss the union’s financial structure, internal controls, key responsibilities, and more. This is not just about handing over documents or providing a calendar of important deadlines and deliverables, but also sharing insights and experiences.
3. Training and support. The incoming treasurer may need training, in the form of courses, workshops, or mentorship from the outgoing treasurer or other experienced union leaders. Providing ongoing support to the new treasurer even after the transition period is essential to ensure they are positioned to succeed in their new role.
4. Communication. Open and transparent communication is key. Union members should be informed about the change in leadership and the transition plan. This communication fosters trust and ensures members that the union’s financial matters will remain in responsible hands.
5. Engage with auditors and advisors. The treasurer is typically the primary contact for the union’s auditors, accountants, bankers, and financial advisors. Early engagement with these individuals can help keep the union’s financial matters moving even during a transition.
6. Compliance with regulations. The treasurer is responsible for ensuring the union complies with all relevant financial regulations and reporting requirements. The transition plan should include a review of regulatory requirements and direction on where the new treasurer can turn for advice and direction.
7. Encourage teamwork. Lastly, a new treasurer should be encouraged to work closely with any staff that they oversee (like a bookkeeper), other union leaders, and any special committees they are assigned to. A strong team can provide support, share the workload, and contribute to effective decision-making.

A leadership transition is a significant event in the life of a union. Although the role of a treasurer comes with hefty responsibilities, with proper planning, effective knowledge transfer, and continuous support, a new treasurer can be put in the best position to help the union and its members succeed.

Whether your union is dealing with business as usual or handling a leadership transition, please know you can always count on RBT CPAs for accounting, audit, tax, and advisory services. Give us a call to see how we can be Remarkably Better Together.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

With growing frequency, cybercriminals are targeting unions, prompting a greater need for cybersecurity awareness, training, and protocols at all levels.

Last year, the Boston Pipefitters Union saw $6.4 million stolen from its health fund. In November, the Allied Pilots Association was the victim of a ransomware attack. Early this year, an SEIU local in California was breached resulting in the possible exposure of member Social Security numbers, home addresses, birth dates, and more. As unions play a vital role in fighting for members’ rights, like all organizations, they must also proactively put plans in place to protect union systems, funds, and sensitive information about members.

Why? A cyber attack can have far-reaching implications, ranging from financial loss, disruption of operations, recovery costs, and legal fees to damage to an organization’s reputation and loss of member trust. Cyber attacks are also easy to facilitate, with dubious links in emails that look like they come from legitimate sources or thumb drives embedded with a virus. Unfortunately, simple deceptions can wreak havoc on systems and organizations.

While a common misunderstanding is that cyber criminals focus on only the largest of organizations, it’s important to recognize a certain contingency of cyber criminals focus on smaller operations or low-hanging fruit that provides easier access to data and ransom fees. (That’s why school districts and local municipalities are frequent targets. With outdated infrastructure and limited resources, it’s easier for cyber criminals to breach their systems, causing chaos by locking systems for days or weeks and holding sensitive information for ransom.)

With the average cost of a cyber breach estimated to be over $4 million in 2023, organizations of all types and sizes – including unions and locals – need to make cybersecurity an ongoing priority. If your local handles members’ personally identifiable information like birth date, Social Security number, home address, phone number, and email address – not to mention any financial information, it’s critical to take steps to proactively protect this data while also having a plan so you know what to do should a breach occur.

A cyber security plan can include clearly defined roles and responsibilities; annual risk assessments and audits (including audits of third-party service providers); data encryption and controls; a response plan; periodic training and communications; and more. By having one in place, you can reassure members that the union is always looking out for their best interests.

A good place to start is with your union’s parent organization to see what policies, protocols, and tools are available to protect members’ information and union systems. In addition, the U.S. Cybersecurity & Infrastructure Security Agency (CISA) provides valuable free resources and tools, including the Shields Up program which is designed to help organizations prepare for, respond to, and mitigate the impact of a cyberattack.

As you explore what your local can and should be doing to protect member information, please remember RBT CPA professionals are available to provide accounting, tax, audit, and advisory services. To find out how we can be Remarkably Better Together, give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. We do not offshore work, so you always know who is handling your organization’s financial information.

With more Americans than ever supporting unions and more employees expressing interest in joining one, it’s a prime time to explore the best ways to attract the next generation of workers to grow union membership. After all, increasing membership leads to stronger unions, stable finances, and greater collective bargaining power.

According to the AFL-CIO, “71% of Americans support unions. The highest level in nearly 60 years. And our future is bright: 88% of people younger than 30 support unions, too.” These same statistics are being repeated by numerous sources, but there is a disconnect. Union membership growth is stagnant. A contributing factor may be how the recruitment of younger workers is approached.

In general, newer generations of workers:

• Have different priorities and values. New generations of workers place a priority on work-life balance, respect, having a voice, valuing diversity, taking care of the planet, and making a difference. They also place a lot of value on benefits that can help them today – like higher pay, student loan reimbursements, time off, and childcare.
• Learn differently and move fast. They never knew a world without the Internet or hand-held devices. Because they grew up as digital natives, they are quick to learn, adapt, and act.
• Communicate and network differently. Their online identities and networks started in grammar and middle school. They meet, socialize, learn, date, work, find friends and roommates, play, and connect online.

All of this came into play during the grassroots unionization efforts at Starbucks, which apparently started with conversations among local employees who reached out to the local branch of a union to learn more. When their efforts became public, employees at other locations reached out for information. Through social media and digital meeting platforms, experiences were readily shared. While the story continues to unfold, it holds some valuable insights into how to engage the newest generation of workers and grow union memberships.

First, make sure newer generations know what a union is, why it exists and what it can do for them. Explore building membership pipelines by presenting at a high school or tech school’s career day or having a table at a local college’s career fair. Host a multi-generational event to build on the goodwill toward unions that exists today while having an opportunity to explain the role and value of a union. You never know when having that knowledge can inspire a young worker to act.

Second, have an online presence where people can easily find your organization, learn what it stands for, who it represents, and more information. Even better, use an online form to collect contact information from interested parties so a current union member can reach out to them directly.  If you don’t have a local website presence, use social media channels to post about meetings, celebrations, recognition, accomplishments, and events to provide insights that prompt potential members to take the next step.

And third, be prepared to help them get started – fast. Some unions have online training sessions that educate about the unionization process. Others have direct links to information on what unionizing entails.

Along the way, be sure to highlight the many benefits of unions, including the ability to deduct dues from New York state taxes on itemized returns; higher wages; better benefits; scheduling flexibility; paid time off; safer workplaces, and more.

As you focus on building your union’s membership, you can count on RBT CPAs to handle your accounting, tax, audit, and advisory needs. We have been serving organizations and individuals in the Hudson Valley for more than 55 years and show time after time how RBT CPAs and our clients can be Remarkably Better Together. For more information, give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Each year, unions covered under the Labor-Management Reporting and Disclosure Act, Civil Service Reform Act or Foreign Service Act must file an annual financial report – a.k.a. Form LM-2, LM-3, or LM-4 – to maintain transparency and accountability. Following is an overview of what these annual financial reports are and why they matter.

In essence, Forms LM-2/3/4 are financial statements with varying levels of detail. Form LM-2 is the most comprehensive, encompassing a wide range of financial information, including receipts and disbursements, assets and liabilities, direct and indirect disbursements to officers and employees, and loans receivable and payable. LM-2 forms also provide information about membership numbers, political spending, grants, and more.

The forms promote financial transparency, empower stakeholders to make decisions, impact a union’s reputation, and foster accountability.  They serve as a check against potential financial mismanagement. Inaccurate or incomplete forms can lead to legal issues (including penalties and potential legal actions); hurt trust in leadership; and threaten a union’s credibility, reach, and impact.

A union’s total annual receipts determine which form is required. Organizations with:

• $250,000 or more in annual receipts, file Form LM-2.
• At least $10,000 but less than $250,000 in annual receipts, file Form LM-3.
• Less than $10,000 in annual receipts, file Form LM-4.

The deadline for the annual filing is within 90 days of the end of the organization’s fiscal year. The form must be filed electronically using the Office of Labor-Management Standards (OLMS) Electronic Forms System (EFS). Before filing, an organization must register in the system.

A union’s president and treasurer or corresponding principal officers are personally responsible for the annual financial report’s accuracy and filing. Failure to file a report or keep required records for at least five years or knowingly misrepresenting or failing to disclose a material fact can result in significant financial fines, imprisonment, or both.

• For information on how to register for an EFS User ID and Password; obtain a union PIN; and obtain, sign and submit an LM form, click here.
• For detailed instructions for completing an LM form, visit the OLMS website.
• For compliance tips and information on how to avoid common reporting errors, click here.

One of the best ways to help promote LM-2/3/4 accuracy and compliance is to work with an experienced accounting professional, like the ones you’ll find at RBT CPAs.  We’ve been operating in the Hudson Valley and beyond for over 50 years and we believe we succeed when we help our clients succeed. Interested in learning more about our accounting, tax, audit, and advisory services? Give us a call.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.