New financial requirements adopted

Responding to the AFT leadership’s call for increased financial controls, delegates approved several constitutional amendments that tighten affiliate and financial review requirements and allow an administrative takeover of a local in an emergency situation.

Approved was a new article in the AFT constitutional bylaws, “Affiliate Audit and Financial Review Requirements,” which stipulates that affiliates with 1,000 or more members (excluding retirees) must submit annual audits prepared by an independent CPA (certified public accountant) and include a letter certifying that the audit has been presented at a meeting of the AFT affiliate’s governing body and made available to members.

For affiliates with fewer than 1,000 members, the financial review may be submitted either as an audit prepared by an independent CPA or by an internal audit committee. In all cases, if an audit or financial review is not submitted to the AFT within six months of the close of the affiliate’s fiscal year, the AFT may conduct the audit or financial review at the affiliate’s expense.

Delegates also approved an amendment authorizing the national union’s officers to invoke an emergency administratorship “in situations requiring immediate action for the purpose of securing and safeguarding an affiliate’s assets and vital records from immediate threat,” provided that two-thirds of the executive council approves the action within five business days. Thereafter, the current constitutional provisions for determining the need for administratorship would be followed.

The AFT executive council recommended the constitutional changes this past spring to help ensure that affiliate financial operations remain democratic and transparent to members. The need for greater financial controls became evident in the past year when two high-profile locals—the Washington (D.C.) Teachers Union and the United Teachers of Dade (Fla.)—were placed under AFT administratorship after criminal charges were filed against leaders of those locals.

Delegates also approved a new section of the bylaws that defines requirements for a local to be in “good standing.” Also, in addition to representation at the AFT convention, locals must be in good standing to ensure their participation in the AFT’s Occupational Liability insurance program, coverage under the AFT Militancy/Defense Fund and to receive financial assistance from the AFT.

The convention also approved national per capita dues increases for the next two years. Effective Sept. 1, 2004, the per capita dues will increase from $12.35 to $12.75 a month and to $13.20 per member, per month effective Sept. 1, 2005.