National Rural Letter Carriers Association

“During January 2017, the NRLCA become aware that an employee had been embezzling funds from May 2016 to January 2017. As a result, the NRLCA immediately notified law enforcement authorities. The NRLCA also conducted an internal investigation and engaged an independent forensic accounting firm to perform its own investigation. Based on these investigations, it was determined that a total of $221,514 had been embezzled. In July 2017, the employee pled guilty to the criminal charges and sentencing is scheduled for October 2017. The NRLCA had employee dishonesty insurance and has successfully recovered the $221,514 of lost funds from its insurers. In May 2017, the NRLCA discovered that a part-time employee was fraudulently claiming, and being paid for, days of union service to the NRLCA when in fact she was also being paid for those days by the Postal Service. It was discovered that this occurred over several years and resulted in a loss to the NRLCA of $10,207.29. The individual was immediately terminated from her NRLCA position and has entered into an agreement to make full restitution to the NRLCA by January 1, 2018. In addition, the employee has agreed not to seek or serve in any elected or appointed office of the NRLCA or any affiliate state association at the local, district, state, and national levels for a period of ten (10) years effective May 17, 2017.”

“NRLCA has five classes of members: (1) bargaining unit members; (2) retired members; (3) associate members; (4) retired associate members; and (5) honorary members.”

“Each membership classification of NRLCA has the following voting rights, as defined by its Constitution: A.) Bargaining Unit members - members in good standing are entitled to all voting rights and to hold both elective and appointive office at all levels of the Association. B.) Retired members - members in good standing are entitled to all voting rights with the exception of ratification of National Agreements. Retired members may not be elected to National Office. C.) Associate members - members shall not be entitled to vote or hold elective or appointive office. D.) Retired Associate members - members shall not be entitled to vote or hold elective or appointive office. E.) Honorary members - members shall not be entitled to vote or hold elective or appointive office.”

“Certain decisions of the governing body are subject to the approval of the members. Amendments to the NRLCA Constitution & Bylaws are also approved by the membership at the annual National Convention.”

“The 990 is prepared internally by the NRLCA Controller, who is a Certified Public Accountant, using the audited trial balance. Once the initial draft is completed, it is reviewed by the Secretary-Treasurer, auditors, and the other National Officers. Once approved, the annual 990, applicable schedules, and any other related tax returns are filed timely.”

“Each officer is required to complete an annual questionnaire disclosing any direct or indirect potential conflicts of interest. The Secretary-Treasurer reviews these questionnaires, raising any issues or concerns with the other National Officers. This questionnaire is reviewed as part of the annual audit process.”

“The Finance Committee submits recommendations for officers' salaries, benefits, and expenses. These recommendations are reported at the National Convention and submitted to the Compensation Committee.”

“The Constitution and Bylaws are made available to each member annually. They are made available to the public upon request. The Conflict of Interest Policy and the audited financial statements are also made available upon request.”

“Reconciliation adjustment 2,033.”

“There was no change to the oversight process from the previous year. The Finance Committee has oversight of the selection of the auditors as well as the audit process.”