Local 221 Fiscal Strength
Dan Marks, Controller
Letter from the Controller
Dear Local 221 Members:
In light of recent news articles about other local unions in California, I want to assure our members that the financial position of SEIU Local 221 remains strong, with sufficient cash flow to meet all expected 2008 and 2009 obligations.
Shortly after joining the Local in March of 2007, President Moore requested a comprehensive audit of the financial records of the Local, which was completed in the fourth quarter of 2007. Our auditors worked closely with us to assess our systems of internal control. They also recommended changes under the new auditing standards that would assure that our financial records were prepared on a modified cash basis and would accurately reflect all of the activities of the Local.
Our Form LM-2 and IRS Form 990 for the calendar year ended December 31, 2007 and are on file with the Department of Labor and Internal Revenue Service, respectively. All significant financial transactions are reviewed and voted on by the Executive Board and are disclosed in the Form LM-2. As a matter of policy and in practice, we do not do not allow expenditures that are extravagant, nor do we contract with any business entity in which any relative of an Officer or Executive Board member has a significant ownership interest.
Dan Marks, Controller
SEIU Local 221
Alison Barkley, Treasurer
Letter from the Treasurer
Dear Union Brothers and Sisters:
In the past few weeks, a couple of SEIU locals in California have had their financial practices called into question. As the Treasurer of Local 221, I feel it is a good time to address the financial health of Local 221 and to ease any of the concerns members may have about our local’s financial status.
First and foremost, I want to assure you that Local 221’s financial health is strong. We are on course to end 2008 in the black and our future financial outlook is solid.
When Local 221 President Sharon-Frances Moore took office last year, she made it clear that one of her top priorities was for Local 221 to be fiscally sound with clear financial controls and transparent practices. The Executive Board of Local 221 shared her vision, and hired an outside firm to conduct an audit. Lindquist, LLP was hired to conduct the audit because of their reputation and experience auditing unions.
The auditors reviewed our financial statements and evaluated the effectiveness of our financial controls. They recommended improvements to our financial process, which in turn were implemented by the local.
One of the recommendations was to hire an experienced accountant to ensure we are compliant with state and federal reporting requirements. Our Executive Board hired Daniel Marks, who works as the Controller at Local 221. He has made certain that our local is carefully following the recommendations outlined by the auditors.
I feel confident that Local 221 has implemented policies that will allow the fiscal strength of our local to continue. I hope knowing this information will reduce your concerns. Although the problems at other locals can be worrisome, we cannot let it distract us from what is really important: building a better future for working people. At Local 221, we’re growing our membership, strengthening our community partnerships, and working to get the best contracts we can for our members. If we keep focused on what is important, together we can achieve even more.
In solidarity,
Alison Barkley, Treasurer
SEIU Local 221