IAFF Trustees Report
Pursuant to Article 6, Section 5, of the Constitution and By-Laws:
The Trustees are charged with overseeing that the IAFF has controls to ensure that its resources are used for its mission, that its financial reporting is accurate, and reporting the results of their oversight to the Board.
The Trustees are also charged with hiring independent Auditors to conduct the audit under generally accepted auditing standards. The Board of Trustees then review the Auditors’ findings, communicate any concerns to the auditors and supplement the independent audit with any other procedures the Trustees believe to be appropriate.
The Trustees performed their inspection and review of the financial records of our International Union and affiliated entities for the fiscal year ended September 30, 2017.
We traveled to IAFF headquarters on January 2, began our review on January 3, and concluded it on January 12, 2018.
The Auditor conducted interviews with the General President, the General Secretary-Treasurer and other IAFF personnel. The Trustees interviewed Executive Vice Presidents, Assistants, Managers and Staff. We also randomly interviewed approximately 25 employees about the well-being and security of the Organization. In addition, the Trustees accessed the Concur system and randomly tested the accuracy of vouchers. These interviews were related to both the audit and to the operations within the IAFF and are necessary to satisfy our fiduciary responsibilities. I am happy to report that our Auditors have noted no material weaknesses in our financial statements or federal awards report.
During our time in D.C. at the IAFF office, we review financial records, per cap reports, minutes, accounting policies, cash receipts, credit card charges, usage of approved bank accounts and verification that no ATM or debit cards were utilized without express permission such as disaster relief, as well as verification that Federal and State information returns such as W2s, 990s and LM-2s were all filed.
Brothers, as you know the IAFF has now accounted for the cost of its defined benefit plans in accordance with the requirements of ERISA. This is a departure from generally accepted accounting principles and the presentation that has been utilized in years past.
This treatment allows us to present the liability related to our pension plans based on ERISA requirements as opposed to the accounting standard that previously forced us to state the present value of the total liability of the pension plans to the extent it exceeds plan assets at the balance sheet date. Our auditors will address in their presentation.
In addition, your Trustees find our operational budget is strong as it has been for years and we see that the change in net assets from programs and supporting services, before our ERISA contribution is a positive $5 million. Our change in net assets overall is $1.23 million.
The Trustees want to thank all the staff of the offices of the General President and General Secretary-Treasurer for all their hard work and assistance in helping us complete the audit.
Thank you to the membership and if you have any questions please do not hesitate to contact your Trustee.
Mark Ouellette, Eastern Region Trustee
Tony Mejia, Western Region Trustee
Alex Forrest, Canadian Trustee