Secretary-Treasurer institutes internal audit, stringent reforms
DETROIT – UAW Secretary-Treasurer Ray Curry announced a series of audits and stringent changes to the UAW’s financial procedures and processes on Monday. These reforms come on the heels of Acting President Rory Gambles’ series of ethics reforms announced last month.
“The UAW is committed to putting in place checks and balances and accounting reforms that prevent financial malfeasance,” said Curry. “This top-to-bottom assessment of our financial and accounting procedures and policies will result in a stronger and more stringent financial oversight of all expenditures and financial transactions. With the support of our entire International Executive Board, we will keep the membership and staff updated on our progress and changes.”
This process began last spring and is an integral part of the UAW’s Reforms Initiative.
They are as follows:
- Increased Staffing
The UAW has hired four additional auditors, all with post-secondary coursework in accounting/finance/tax regulation to assist with increased auditing process.
- Internal Comprehensive Financial Controls Audit
The firm of Deloitte has been retained to conduct a complete assessment of all accounting and financial processes and procedures, including:
- International Union (Solidarity House)
- All UAW Regional Offices
- All Political Action Committees
- UAW Golf Course
- Black Lake Education Center
Timing: Deloitte began the audit in 2Q 2019. Initial recommendations are expected by early January 2020. The audit and final report are expected to be completed by March 2020, with implementation of recommendations ongoing during the audit time period.
- New External Auditing Firm
The UAW has retained a new external accounting firm — with a nationwide practice and an expertise working with labor organizations — that will be handling the financial audit work of the International Union for 2019, conducting a one-year lookback into all financials. This firm will also be handling the UAW financial reporting going forward.
- Expanded Internal Training
The Secretary-Treasurer’s office is implementing a comprehensive expansion of financial training for all UAW personnel responsible for any financial/accounting duties. Personnel will be trained on new accounting procedures, operational procedures,
new regulations, labor laws, updated policies and procedures and new checks and balances, etc.
- Increased Centralization of Accounting/Financial Operations
As part of this comprehensive overhaul, financial operations will be more centralized with oversight from the Secretary-Treasurer’s Office and subject to the stringent new policies and procedures implemented as a result of the overall independent audit.
- Strict Bonding Certificate Enforcement
The UAW will aggressively utilize the Bonding Certificate system in place to clawback or recover 100% of any misappropriated funds prior to any restitution afforded by the courts.
“Dues dollars are sacred,” said Acting President Gamble. “Secretary-Treasurer Curry and I, along with the entire International Executive Board, are committed to establishing stringent financial controls and new procedures to address and fix any weaknesses in the system. The UAW will hand over to our membership in 2022 a financially safeguarded union.”
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