organization's books and records to prepare
Form LM-2 or other financial reports. Also, do
not answer "Yes" to Item 12 if an audit
committee or trustees of the labor organization
performed the audit or review.
13. LOSSES OR SHORTAGES — Answer
"Yes" to Item 13 if the labor organization
experienced a loss, shortage, or other
discrepancy in its finances during the period
covered. Describe the loss or shortage in detail
in Item 69 (Additional Information), including
such information as the amount of the loss or
shortage of funds or a description of the
property that was lost, how it was lost, and to
what extent, if any, there has been an
agreement to make restitution or any recovery
by means of repayment, fidelity bond,
insurance, or other means.
14. FIDELITY BOND — Enter the maximum
amount recoverable for a loss caused by any
officer, employee, or agent of the labor
organization who handled the labor
organization's funds. Enter "0" if the labor
organization was not covered by a fidelity
bond during the reporting period.
NOTE: If a labor organization has property and
annual financial receipts that exceeded $5,000,
each of the labor organization's officers,
employees, and agents who handles funds or
other property of the labor organization must be
bonded. The amount of the bond must be at
least 10% of the value of the funds handled by
the individual during the last reporting period,
up to a maximum bond of $500,000. The bond
must be obtained from a surety company
approved by the Secretary of the Treasury. If
you have any questions or need more
information about bonding requirements,
contact the nearest OLMS field office.
15. ACQUISITION OR DISPOSITION OF
ASSETS — If the labor organization answered
"Yes" to Item 15, describe in Item 69 (Additional
Information) the manner in which the labor
organization acquired or disposed of the
asset(s), such as donating office furniture or
equipment to charitable organizations, trading in
assets, writing off a receivable, or giving away
other tangible or intangible property of the labor
organization. Include the type of asset, its value,
and the identity of the recipient or donor, if any.
Also report in Item 69 the cost or other basis at
which any acquired assets were entered on the
labor organization's books or the cost or other
basis at which any assets disposed of were
carried on the labor organization's books. For
example, assets may be entered on the labor
organization’s books at cost and carried at that
value; carried at cost less accumulated
depreciation; or carried at scrap value or other
nominal value because the assets were fully
depreciated or were expensed when purchased
(that is, the cost was charged to current
expenses rather than entered on the books and
periodically depreciated).
For assets that were traded in, enter in Item 69
the cost, book value, and trade-in allowance.
16. PLEDGED OR ENCUMBERED ASSETS —
If the labor organization answered "Yes" to Item
16, identify in Item 69 (Additional Information) all
of the labor organization's assets pledged or
encumbered in any way (such as those pledged
as collateral for a loan) at the end of the reporting
period. Also report in Item 69 their fair market
value, and provide details of transactions related
to the encumbrance.
17. CONTINGENT LIABILITIES — If the labor
organization answered "Yes" to Item 17, describe
in Item 69 (Additional Information) the
transactions or events resulting in the contingent
liabilities and include the identity of the claimant
or creditor. Contingent liabilities are potential
obligations that may or may not develop into
actual liabilities in the future. Examples of a
contingent liability are a loan co-signed by the
labor organization, or a pending lawsuit that
could result in the labor organization being
ordered to pay damages or make other
payments.
A pending administrative or judicial action is
considered a contingent liability that must be
reported in Item 17 if, in the opinion of legal
counsel, it is reasonably possible that the labor
organization will be required to make some
payment. Such administrative or judicial actions
must be reported as contingent liabilities
regardless of whether or not the possible losses
would have a materially adverse effect on the
labor organization's financial condition. List in
Item 69 each administrative or judicial action,
including the case number, court, and caption.
18. CHANGES IN CONSTITUTION AND
BYLAWS OR PRACTICES AND
PROCEDURES — If the labor organization
answered "Yes" to Item 18 because the labor
organization's constitution and bylaws were
changed during the reporting period (other than
rates of dues and fees), a dated copy of the new