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TERRENCE
R.
MOONEY
C.P.A.
Certified
PublicAccountant
247
NEWJERSEY
AVENUEABSECON,
NEWJERSEY
08201
MEMBER
OF
NEW
JERSEY
SOCIE1Y
OF
CERTIFIED
PUBLICACCOUNTANTSAMERICANINSTITUTE
OF
CERTIFIED
PUBLICACCOUNTAi'lTS
TotheInternationatBrotherhood
of
CarpentersandJoinersAttn:FrankSpencer,Supervisor
14
KingsHighwayWestHaddonfield,NJ08033September
23,2009
DearMr.Spencer,Iwasengagedtoperformanaudit
to
verifytheliabilityandmanagementpracticesastheyrelatestoNewYorkDistrictCouncilCarpenters
of
theInternationalBrotherhood
of
CarpentersandJoiners
of
America.ObjectivesTheobjectives
of
theauditwereto:
..
Determine
if
theDistrictCouncil'sadministrativeprocedureswereeffective,•Determine
if
therewereanyoutstandingliabilities.•Providerecommendations
to
enhancetheDistrictCouncil'scurrentfinancialsystemScope
of
the
Audit
Thescope
of
theauditwaslimited
to
BackgroundInformation
1,2006
toAugust
2009.
NewYork
IS
aCouncilNewYorkNewYork.TheCouncilmembersperformjobsprimarilythr'oughout
of
NewOfficersandTrustees
ofthe
DistrictCouncilaremandatedtoact
by
standards
of
careestablishedbothInternationalBrotherhood
of
CarpentersandJoinersandtheUnitedStates
of
Laborunder
TEL:
609-407-0056;
FAX:
609-407-9956:
EMAIL
TMOONEY@TRMCPACOM
1
 
SourceDocumentsIInspectedthefollowingdocuments:
1.
IreviewedtheDistrictCouncil'sminutesfortheExecutiveBoard,Delegates,PACandSpecialmeetingsfromJanuary2007throughAugust2009.
2.
IreviewedtheDistrictCouncil'spersonnelpolicyforItsemployeesdatedApril
10,
2000
3.
IreviewedtheBankAccountsandInvestmentsfromAugustI,2006toAugust10,2009.
4.
IreviewedtheFederalFonn990,LM-3andBondreportfor06/30/06,06/30/07and06/30/08.
5.
IreviewedtheLMreportsforLocal157fortheperiodended10/02/08.
6.
IreviewedtheLMreportforLocal608fortheperiodended06/30/08.
7.
Ireviewedinvoices,checksandbanktransactionfromAugust1,2006
to
August10,2009.
8.
Iinspectedthedocuments
of
thesafelocatedontheninthfloor
of
theDistrictsCounciloffice.
9.
I
Inspecteddeeds
of
propertyandtitles
to
vehiclesonhandatthecouncil'soffice
Summary
of
ProceduresPerformed
1.
Reviewedminutes
as
to
allmatters
of
discussionastheyrelatetomanagementandmateriality.
2.
Reviewedcorrespondence
asIt
relatestomanagementandmateriality.
3.
Review
of
bankingtransactions
as
theyrelatetostandards
of
careandprotection
of
theDistrictCouncil'sassets.
4.
Review
of
invoicesastheyrelatetostandardscareandprotection
of
theDistrictCouncil'sassets
5.
Review
of
theDistrictCouncil'sannualreportingtotheInternational,InternalRevenueServiceandtheDepartment
of
Labortoestablish
If
allInfonnationwaspresentedfairlyandaccurately.
Theon'
ThattheDistrictCouncil'sdidnotprovidetheStandard
of
Careestablished
by
boththeInternationalBrotherhood
of
CarpentersJoinersandtheUnitedStatesDepartment
of
LaborunderFindings
Deficiencies
of
Department
of
LaborPractices
2
 
AccountingDuringtheperiod
of
July
1,
2006throughAugust
6,
2009variousaccountingproceduresthatwereperformedwerenotconformitywithDepartment
of
LaborStandards
of
Practice.Thefindingsare
as
follows:I-Duringtheinspection
of
asafeonpremises
of
theDistrictCouncilitwasdeterminedthattherewereun-depositedfundsandthereforeunreportedcashtransactions
by
theCouncil.are
as
follows:A-Duesreceived1996and1997forLocal
135
memberswerelabeledandplacedinenvelopesinsidethesafe.Thesefundswerenotrecordedorreported.Cashproceedsfromthesale
of
50/50
ticketsforacharitysoftballtournamentwerenotrecordedorreported.2-TheDistrictCouncil'spolicyonfinesfromticketsistopaytherelatedticket,duetofleetobligationsandthendeducttherelatedliabilityfromthemember'spaycheck.policywasnotadhered
to
100%;thereforemembersreceivedbenefitsthattheywerenotentitledto.3-TheDistrictCouncil'sPettyCashpolicyisineffective.Althoughminimalindollarstheaccountingproceduresdidnotreflectthecorrectreporting
of
thesetransactions.4-TheDistrictCouncil'sprocedures
to
securedeeds
of
propertywereineffective.TheCouncilwasonlyabletoidentifyonedeedout
of
threeforpropertyowned
by
thecouncil.5-TheDistrictCouncil'saccountingproceduresastothenetting
of
bothincomeandexpensesunderstatesthereporting
of
suchtransactions.Althoughthesetransactions
do
notchangethefinalnetearnings
of
thecouncil,foranyperiodreported,themethodcreatesanunderreportingissueonthestandardsestablished
by
theDepartment
of
Labor.6-TheDistrictCouncil'sbooks
of
recorddidnotreporttheownership
of
aFirstTradeBankCertificate
of
Deposittheamountof$133,000forallperiodsaudited.
7-
TheCouncilbankingrelationshipwithAmalgamatedBankcreatedaconcentration
of
risk
to
themember'sassetsforexcesscoverage.Althoughnotedtheauditor'sreport,noaction
by
theOfficersorTrusteesisafiduciarydeficentcy.I-Filings-Form990,LM-3andInternational'sBondReportTheofficers
of
thelocalareresponsibleforthecompletenessandaccuracy
of
thesefilingsastonotmisleadthereaderastothefinancialstabilityandortheactivity
ofthe
Theareeachannualandthererelatederrors.
3
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