UAW changing internal financial scrutiny amid federal investigation | Michigan Radio
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UAW changing internal financial scrutiny amid federal investigation

Dec 2, 2019

Credit UAW

The United Auto Workers announced some internal changes on Monday in response to a federal investigation into the union’s finances.

“Dues dollars are sacred,” says Acting UAW President Rory Gamble. “The entire International Executive Board (is) committed to establishing stringent financial controls and new procedures to address and fix any weaknesses in the system.”

The changes come after the resignation of UAW President Gary Jones, amid a federal investigation into the union. Jones had faced internal charges within the UAW that could have led to his ouster as president, but he resigned.

Other union officials have been charged or implicated in a federal corruption probe.

In response to the scandal, the UAW has replaced its auditing firm, added internal auditors and has hired a new accounting firm to study its financial controls.

UAW Secretary-Treasurer Ray Curry says the changes will put checks and balances in place to prevent financial misconduct.

“This top-to-bottom assessment of our financial and accounting procedures and policies will result in a stronger and more stringent financial oversight of all expenditures and financial transactions,” says Curry.

Here is the list of changes being made by the UAW, according to a press release:

  1.  Increased Staffing
    The UAW has hired four additional auditors, all with post-secondary coursework in accounting/finance/tax regulation to assist with increased auditing process.
  2. Internal Comprehensive Financial Controls Audit
    The firm of Deloitte has been retained to conduct a complete assessment of all accounting and financial processes and procedures, including:
    1. International Union (Solidarity House)
    2. All UAW Regional Offices
    3. All Political Action Committees
    4. UAW Golf Course
    5. Black Lake Education Center

Timing: Deloitte began the audit in 2Q 2019. Initial recommendations are expected by early January 2020. The audit and final report are expected to be completed by March 2020, with implementation of recommendations ongoing during the audit time period.                    

  1. New External Auditing Firm
    The UAW has retained a new external accounting firm — with a nationwide practice and an expertise working with labor organizations — that will be handling the financial audit work of the International Union for 2019, conducting a one-year lookback into all financials. This firm will also be handling the UAW financial reporting going forward.
  1. Expanded Internal Training
    The Secretary-Treasurer’s office is implementing a comprehensive expansion of financial training for all UAW personnel responsible for any financial/accounting duties. Personnel will be trained on new accounting procedures, operational procedures,
    new regulations, labor laws, updated policies and procedures and new checks and balances, etc.
  2. Increased Centralization of Accounting/Financial Operations
    As part of this comprehensive overhaul, financial operations will be more centralized with oversight from the Secretary-Treasurer’s Office and subject to the stringent new policies and procedures implemented as a result of the overall independent audit.
  3. Strict Bonding Certificate Enforcement
    The UAW will aggressively utilize the Bonding Certificate system in place to clawback or recover 100% of any misappropriated funds prior to any restitution afforded by the courts.