Managing financial resources
The treasurer is responsible for the administration of the finances, but the executive as a whole is accountable for the integrity of the local’s financial practices. This section outlines the central elements of local financial administration which will be of interest to all members of the local executive.
Managing the membership list
On a monthly basis, each local receives a computer printout listing all of its members. It contains additional valuable information that requires the attention of the local executive, but the simple list of the members is the first matter for review here.
The local receives a dues rebate from the CEIU national office on a regular basis, and the amount received is tied directly to the number of members showing on the printout. If an employee moves from one office to another, he or she may not be transferred to the receiving local’s list. For the local concerned, this means it does not receive any dues rebate for that employee; instead the former local continues to receive it. The treasurer is responsible for ensuring that all employees working in the local appear on the monthly printout. If some do not, a transfer card should be completed and sent to the union’s national office.
The membership printout also lists the status of each employee. “F” means the employee is a member in good standing, “S” means that they are currently suspended from membership and “R” indicates that they are a ‘Rand’. A Rand is an employee who is covered by the collective agreement, and who must, accordingly, pay union dues. But while paying dues is mandatory, becoming a member of the union is not. Employees must voluntarily opt to join the union, and one duty of the local executive is to explain the benefits of membership and offer Rands the chance to join and participate.
The term ‘Rand’ is, at first sight, an odd title for an employee who pays dues but is not a member of the union. The term comes from the name of a judge who arbitrated a settlement to a famous strike in Canadian labour history. Workers at Ford in Windsor, Ontario, had struck over the issue of union security in 1945. They wanted all workers at Ford to be union members and to pay dues through an automatic payroll check-off. Their reasoning was that since everyone benefited from the union contract, everyone ought to be a member and pay their share of the union’s operating costs. Justice Rand’s decision split the issue down the middle. He agreed that each worker benefited from the contract and that each would be required to pay dues through the check-off system. But he allowed union membership to be voluntary rather than compulsory. Given the importance of this event in labour history, the term ‘Rand’ has endured to signify a dues-paying employee who has not opted for union membership.
Training and advice on the more obscure information contained on the printout is available, but the principal tasks for the executive are those explained above.
Preparing a budget
A local budget should allocate resources in an open and effective manner, and while all members of the executive ought to participate in the drafting of the budget, it often falls to the treasurer to take the lead. The budget sets out how the local will spend over the coming year and when presented at the annual general membership meeting, it allows the members to make the final determination about spending priorities. Participation in this process helps to cement the bonds between the local leadership and the members, so careful preparation is required. Traditionally, the treasurer presents the budget and explains it to the members.
The dues rebate
Each local sets its own local dues rate by a vote of its members. The dues are deducted by the employer and sent to the union at the national level which, in turn, rebates the portion of the dues belonging to the local. But in order to receive the rebate, the local must meet the financial reporting requirements of the CEIU. These are contained in Local Rules section of the CEIU By-laws, which read, in part:
Section 3 – AUDITS
This Local’s Executive shall, one (l) month prior to the annual general meeting, appoint someone who is not a Local Officer to audit the financial records of the Local. This person(s) shall normally be a member. A report in writing to the Local Executive shall be made one (l) week prior to the date set for the said meeting.
Section 4 – FINANCIAL STATEMENTS
This Local shall produce an annual audited financial statement. This audited financial statement shall be sent, in a format as prescribed in Annex “A” of these Local Rules, to the Union’s National Headquarters and to the National Vice-President(s) by March 1st each year. A signed declaration that it has been approved by a general membership meeting must accompany the financial statement when it is sent to the National Union Headquarters. Should the financial statement not be received, the flow of funds to the Local shall be stopped. Following receipt of the financial statement, all funds withheld shall be remitted to the Local.
These sections speak clearly to the requirements each local must meet to maintain its rebate payments. The treasurer must ensure that the financial records are prepared in an accurate and timely manner, but the entire executive is responsible for carrying out the necessary steps for the audit and approval of the financial statement.
For reference, the sample financial statement from Annex “A” is reproduced below.
ANNEX ‘A’ (to Appendix A)
SAMPLE
CANADA EMPLOYMENT AND IMMIGRATION UNION
CEIU LOCAL 00001
FINANCIAL STATEMENT
For the Period 1st January, 2003 to 31st December, 2003
| REVENUE | ||||
| Membership Local Dues |
$ 1,000.00
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| Bank Interest |
50.00
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| Other (specify) |
50.00
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| $ 1,100.00 | ||||
| Accounts Receivable (Breakdown attached) | ||||
| EXPENSES | ||||
| Meetings (Breakdown attached) |
500.00
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| Professional fees (Legal Service or advice, etc.) | ||||
| Insurance |
20.00
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| Bank Charges |
10.00
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| Postage (Express, etc.) |
10.00
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| Printing and Stationery |
20.00
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| Rental and Equipment | ||||
| Maintenance and Repairs (Equipment) | ||||
| Telephone | ||||
| Telegrams |
10.00
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| Publications |
10.00
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| Entertainment |
30.00
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| Training Courses (Breakdown attached) |
100.00
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| Seminar Expenses (Area Council, etc.) | ||||
| (Breakdown attached) |
100.00
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| Area Council Dues |
10.00
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| Office Supplies |
10.00
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| Gifts and Condolences |
10.00
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| Traveling (Breakdown attached) |
150.00
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| Sundries |
10.00
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| Other Expenses (specify) | ||||
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| $ 1,000.00 | ||||
| Excess of Revenue over Expenses |
100.00
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| Opening Balance (1 Jan. 03) |
400.00
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| Closing Balance (31 Dec. 03) |
$ 500.00
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| Accounts Payable (Breakdown attached) | ||||
| RECONCILIATION | ||||
| Cash in Bank (Current Account) |
$ 45.00
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| Cash in Bank (Savings Account) |
355.00
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| Cash on hand for deposit |
75.00
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| Petty cash on hand |
20.00
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| Postage on hand |
5.00
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$ 500.00
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| We hereby certify that this audited statement has been approved by the general membership of this local and place our signatures, as follows. | ||||
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President
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Treasurer | |||
| NOTE: There may be some accounts that some locals will not require, and there may be other accounts that some locals will want to include. | ||||
| FINANCIAL INSTITUTIONS | ||||
| Name and Address | Bank Account Nos. | |||
| Bank of Montreal $$$$ Bank Street Ottawa, Ontario XXX YYY |
1234567 | |||
| Ottawa Co-Op 0000 Parliament Street Ottawa, Ontario XXX YYY |
567890 | |||
| Canada Trust 0000 Ontario Avenue Ottawa, Ontario XXX YYY |
34567890 | |||
| Audited by: ____________________________________ | ||||
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