Attach to Form 990 or 990-EZ.| Identifier | Return Reference | Explanation |
|---|---|---|
| ALL OTHER ACCOMPLISHMENT DESCRIPTION | FORM 990, PAGE 2, PART III, LINE 4D | CONTRACT NEGOTIATION , ADMINISTRATION AND REPRESENTATION OF APPROXIMATELY 500 MEMBERS IN THE AIRLINE INDUSTRY. INCLUDES GRIEVANCES, ARBITRATION, HEALTH AND SAFETY ISSUES IN THE WORKPLACE. |
| MATERIAL DIVERSION OF ASSETS | FORM 990, PAGE 6, PART VI, LINE 5 | ON APRIL 4, 2013, THE TRANSPORT WORKERS UNION INTERNATIONAL EXECUTIVE COUNCIL, ("TWUIEC"), DETERMINED THAT IT WOULD BE IN THE BEST INTEREST OF ALL MEMBERS OF LOCAL 576 TO PLACE LOCAL 576 INTO TRUSTEESHIP BASED ON AN INITIAL REVIEW OF FINANCIAL IRREGULARITIES AT LOCAL 576. ON APRIL 5, 2013 CERTAIN ELECTED REPRESENTATIVES OF LOCAL 576 MET WITH THE AIR TRANSPORT DIVISION, ("ATD") OF TWU INT. AND REVIEWED HISTORICAL FINANCIAL RECORDS AND EXPENSE TRENDS. THE ATD REPRESENTATIVE REVIEWED A PROPOSED RESOLUTION WITH THE LOCAL 576 REPRESENTATIVES THAT HAD BEEN DRAFTED BY THE TWUIEC PROPOSING VOLUNTARY TRUSTEESHIP. THE THEN CURRENT EXECUTIVE OFFICERS OF LOCAL 576 AGREED TO IMMEDIATELY RESIGN WITHOUT A FORMAL HEARING AND CONSENT TO THE TRUSTEESHIP AS REQUESTED BY THE TWUIEC. AT THAT TIME, A TRUSTEE WAS APPOINTED AND ALL MATTERS RELATED TO DAY-TO-DAY MANAGEMENT WERE ASSUMED BY THE TRUSTEE. THE TRUSTEE HAS BEGUN THE PROCESS OF DETERMINING THE DEFICIENCIES IN INTERNAL CONTROL THAT EXISTED, THE LACK OF GOVERNANCE, AND OTHER MATTERS THAT LED TO THE TRUSTEESHIP. AS THE TRUSTEE HAS PERFORMED HIS INQUIRIES AND REVIEW OF MATERIALS, HE HAS DETERMINED THAT CERTAIN FORMER EXECUTIVE OFFICERS OF LOCAL 576 HAVE BREACHED THEIR FIDUCIARY DUTY TO MANAGE THE FUNDS AND PROPERTY OF LOCAL 576 SOLELY FOR THE BENEFIT OF LOCAL 576 AND ITS MEMBERS IN ACCORDANCE WITH TWU INT. CONSTITUTION AND LOCAL 576'S BYLAWS. SPECIFICALLY, CERTAIN FORMER EXECUTIVE OFFICERS HAVE MISAPPROPRIATED CERTAIN ASSETS OF LOCAL 576. PROCEEDINGS ARE NOW UNDERWAY TO RECOVER ALL MISAPPROPRIATED FUNDS. THE TRUSTEE INTENDS TO USE ALL AVAILABLE MEANS TO RECOVERY THE MISAPPROPRIATED FUNDS FOR LOCAL 576. THE TRUSTEE HAS FILED A CLAIM AGAINST THE 50,000 FIDELITY BOND WITH THE INSURANCE CARRIER WHO COVERS LOCAL 576 FOR THEFT LOSSES. THE ULTIMATE OUTCOMES OF ALL THESE RECOVERY EFFORTS ARE NOT CURRENTLY KNOWN. AFTER THE TWUIEC DETERMINED THAT LOCAL 576 SHOULD BE PLACED INTO TRUSTEESHIP, THE APPOINTED TRUSTEE HAS DETERMINED THAT MISAPPROPRIATION OF THE ASSETS OF LOCAL 576 HAS OCCURRED. THE TRUSTEE HAS DETERMINED THAT THIS MISAPPROPRIATION BEGAN OCCURRING IN 2008 AND CONTINUED UNTIL THE TIME OF THE APPOINTMENT OF THE TRUSTEESHIP. AS SUCH, THE TRUSTEE HAS DETERMINED AFTER REVIEWING CERTAIN EXPENDITURES AND ASSET PURCHASES, WHICH THE FORMER OFFICERS ARE LIABLE FOR FUNDS INAPPROPRIATELY HANDLED IN THEIR FIDUCIARY CAPACITY AS MANAGERS OF LOCAL 576. THESE FUNDS AND ASSETS HAVE BEEN IDENTIFIED AND RECOVERY EFFORTS ARE UNDERWAY. AS OF JUNE 30, 2013, A TOTAL OF 536,000 HAS BEEN IDENTIFIED AS MISAPPROPRIATED BEFORE AND DURING THE FISCAL YEAR ENDING JUNE 30, 2013 WITH 53,000 BEING MISAPPROPRIATED AND 6,000 IN RESTITUTION BEING MADE BY THE FORMER OFFICERS DURING THE YEAR ENDING JUNE 30, 2013. AS OF JUNE 30, 2012, A TOTAL OF 489,000 HAS BEEN IDENTIFIED AS MISAPPROPRIATED BEFORE AND DURING THE FISCAL YEAR ENDING JUNE 30, 2012 WITH 93,000 BEING MISAPPROPRIATED DURING THE YEAR ENDING JUNE 30, 2012. THE TRUSTEE HAS BEGUN PROCEEDINGS TO RECOVERY ALL MISAPPROPRIATED ASSETS AND HAS BEEN SUCCESSFUL IN RECOVERING SOME OF THE MISAPPROPRIATED FUNDS DURING THE YEAR ENDED JUNE 30, 2013. THE AMOUNT REPORTED AS DUE FROM FORMER OFFICERS IS CARRIED AS A NON-CURRENT ASSET SINCE THE CHARACTERIZATION IS NOT PRESENTLY KNOWN AS TO THE TIME FRAME FOR COLLECTION OF THIS ASSET. DUE TO THE UNCERTAINTY OF THE COLLECTABILITY OF THESE MISAPPROPRIATED ASSETS, THE TRUSTEE HAS ELECTED TO RESERVE ALL BUT 50,000 OF THE ASSETS DUE FROM FORMER OFFICERS. AS OF JUNE 30, 2013, A TOTAL OF 486,000 HAS BEEN IDENTIFIED AS POTENTIALLY UNCOLLECTIBLE FROM THE MISAPPROPRIATED FUNDS BEFORE AND DURING THE FISCAL YEAR ENDING JUNE 30, 2013 WITH 3,000 BEING IDENTIFIED AS A REDUCTION IN THE ALLOWABLE TO NET THE AMOUNT DUE FROM FORMER OFFICERS TO 50,000 WHICH IS THE AMOUNT DUE FROM THE INSURANCE COMPANY FROM THE CLAIM ON THE FIDELITY BOND MADE DURING THE YEAR ENDING JUNE 30, 2013. AS OF JUNE 30, 2012, A TOTAL OF 489,000 HAS BEEN IDENTIFIED AS POTENTIALLY UNCOLLECTIBLE FROM THE MISAPPROPRIATED BEFORE AND DURING THE FISCAL YEAR ENDING JUNE 30, 2012 WITH 93,000 BEING IDENTIFIED AS UNCOLLECTIBLE DURING THE YEAR ENDING JUNE 30, 2012. |
| ELECTION OF MEMBERS AND THEIR RIGHTS | FORM 990, PAGE 6, PART VI, LINE 7A | OFFICERS & MEMBERS OF THE EXECUTIVE BOARD ARE ELECTED BY THE MEMBERSHIP. |
| ORGANIZATION'S PROCESS USED TO REVIEW FORM 990 | FORM 990, PAGE 6, PART VI, LINE 11B | FORM 990 IS REVIEWED BY THE FINANCIAL SECRETARY PRIOR TO FILING. |
| GOVERNING DOCUMENTS DISCLOSURE EXPLANATION | FORM 990, PAGE 6, PART VI, LINE 19 | NO DOCUMENTS AVAILABLE TO THE PUBLIC |
| CHANGE IN ACCOUNTING METHOD EXPLANATION | FORM 990, PAGE 12, PART XII, LINE 1 | ACCOUNTING METHOD WAS CHANGED TO MODIFIED CASH BASIS ON 07/01/10. |
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