Labor unions have reason to demand high-quality audits and strong systems of internal control because they rely on financial information in collective bargaining negotiations. However, organized labor creates incentives for managers to procure lower quality audits and provide weaker internal control to hold greater influence over the content of the financial information that unions receive. There is evidence that union strength is associated with higher audit quality and better internal control. Specifically, union strength is associated with higher audit fees, fewer audit failures, and fewer material weaknesses.
Typical disbursements from your union’s checking account might include payments for per capita taxes, hall rentals, office supplies, and lost time to officers. Members expect that when their union spends money it will be for legitimate union purposes and that these expenditures will be properly authorized. A business union audit New Jersey on your documents, such as your union’s constitution, minutes of meetings, bills, and vouchers, will help you determine why disbursements were made and whether they were authorized by your membership under your constitution and bylaws.
As you begin a business union audit of your union’s financial records your job as a Trustee may seem intimidating, particularly if you have never conducted an audit or are unfamiliar with your union’s books and records. However, if you think of the audit process as a series of separate steps and understand your responsibilities for each step, the entire process becomes more manageable. At this early stage, preparation is very important since good planning and organization are key ingredients to conducting a meaningful audit.
The business union audit New jersey professionals understand governmental reporting requirements and the necessity of properly designed and maintained labor accounting records. They will keep you informed about the Department of Labor (DOL) and Internal Revenue Service (IRS) issues and are well-versed in the objectives, principles, and reporting responsibilities that are necessary for labor organizations.
The best way to get started is to review your union’s constitution and bylaws to determine your specific responsibilities as a Trustee. At least one week before the audit you should discuss your roles with the other Trustees either in person or by telephone and select a chairperson or team leader if one is not already designated. If none of the Trustees has ever conducted an audit, you should consider contacting members who have served as Trustees in prior years to discuss their experiences, both positive and negative. You may also wish to contact your parent body, as needed, to seek advice or information about your duties.
You should understand the process of a business union audit of a new jersey is time consuming, expensive, and necessary. Professionals understand that conducting the audit without being perceived as invasive or presumptuous is a difficult proposition, so there is certainly something to be said for the comfort level established between the parties involved. Their strongest attribute is in the staff’s ability to conduct the audit thoroughly, accurately, and timely while maintaining a level of comfort that puts the client at ease.