INSPECTION SUMMARY OF SEIU LOCAL 1000 FINANCES Our Fight For Transparency Continues We Believe We Didn’t Get Full

Disclosures PURPOSE OF INSPECTION: 1Did SEIU 1000 Officers and Employees Took A Pay Cut Of Their Salaries Like, We The MEMBERS, got a 15% furlough? Did They Reduce Their Expenses During This Financial Crisis? 3What Did They Do In Saving To Reduce Our Fees?

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We were not allowed to make any photocopies, or have a CPA, or accountant, not even our lawyer was allowed in the room. We had 4 hrs to inspect ALL the finances of 2 years (60 million dollars budget+ a year) DATE: TIME: LOCATION: PRESENT: 11/27/2012 10am to 3pm Holiday Inn, 30 J Sacramento, Calaveras Room (can fit 50 persons) Lisa Garcia and Mariam Noujaim, SEIU Members, and Two SEIU Employees

Our lawyer, Steve Bassoff, accompanied us in the room. -(SEIU Employee) said: “you are not allowed here”. -reply: “this is my Lawyer..” -(SEIU Employee) “I am sorry he is not allowed” -reply: “I thought in California you always have the right to have your counsel?! -(SEIU Employee) “I am sorry, he cannot be present…” -Steve Bassoff: “that is alright, I am leaving….…”, and he left. 1SPLURGING or STUPIDITY?!! There is no better way to explain our serious doubts about SEIU Officers splurging with our money, than what happened today. • Why did SEIU have to go out of their way to rent a hall at the Holiday Inn (room for over 50 persons capacity) for just 4 persons, 2 members and 2 SEIU employees? Pay for rent, mileage, parking, additional labor to arrange the documents in boxes to be transported, returning the boxes and empty the documents, and most probably feeding the 2 employees at our expenses when we could just meet in one of our many SEIU buildings half empty most of the time? • SEIU scheduled our inspection from 10am To 3pm. Middle of the day. At noon, after 2 hrs only of being there, the employees call for an hour lunch time. We asked if we could continue to work since we brought our lunch with us (peanut butter sandwiches) + our bottle of water. Then we asked if they could go to lunch one at a time so we can stay and continue our review? We even offered them lunch since we had surplus. No, they said they have to leave and lock the door.

Since they were allowing for only 4 hrs inspection for such a gigantic budget, couldn't they save our time and have it at the begining of the day 8am to noon? Rent the room for half a day rather than a full day? Save our time and go to work afterwards (we work swing) rather than taking time off? 2SEIU SALARIES: Disappointingly; but at no surprise, there were no W2s, no 1099, no salary chart, or anything related to income. SEIU members are struggling with furloughs, while SEIU Officers, not only do they splurge with our money; BUT, don’t even get furloughed like us who are paying their salaries. 3BANK STATEMENTS: We have seen pages and pages, months after months, with names of hundreds of individuals (different names/monthly) who were paid identical check of $560 or less , not to exceed $600. There were no time to analyze these expenses. The amount could add up to hundreds of thousands if not millions. We are not CPA or accountant. Our opinion is that they pay them under $600 so they don't have to declare (1099). Again, we cannot be sure; but , we think these are payments for people to participate, organize, and cheer lead their rallies. We have been to enough SEIU rallies to know and see how they organize them with non-member unions and paid staff. 4. CREDIT CARD STATEMENTS: 23 months statements for half a dozen of senior officers/staff for less than half a million of dollars on mostly personal expenses. We don't know how many more credit cards are out there or what is the total amount spent on credit card since we couldn't reconcile. We could see only half a dozen of names on these statements. It is hard to conceive that only that few have a credit card? 5. VISIBILITY: There were two and a half full boxes of ledger which are not a reflection of real expenses. There were no specificities. One skinny file of bank and credit card statements. There was no time or way to reconcile these statements without a full budget and dollar amount. No W2’s or 1099 or anything related to salaries No reimbursement claims No expense reports No copies of cancelled checks No rental agreements No bills No invoices No supporting documents to have any visibility Why, Where, What, Who, and How Much Not only did SEIU Local 1000 spent foolishly Members’ due to rent a hall at the Holiday Inn rather than using their own offices; but, add the hours spent to (we think) arrange the documents in a way we have NO visibility This inspection is not to our satisfaction. We will be conferring with our Lawyer on how to proceed to have full transparency of our dues.

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