1 U.S. Department of Labor U.S. Department of Labor Office of Labor-Management Standards (OLMS) Bookkeeping for the New Labor Organization Annual Report Form LM-2

2 Overview Option 1 – Set up chart of accounts using categories that mirror the LM-2 categories Option 2 - You may also keep your existing chart of accounts and add the LM-2 categories for bookkeeping classifications Option 3 – Book to both the union accounts and LM-2 accounts and use the LM Contra Account to offset the double-booking

3 Overview Each transaction should be assigned to an LM-2 bookkeeping account Individual credit card transactions must be entered into the system and assigned to the proper LM-2 bookkeeping categories Data from accounting software reports can be exported to a spreadsheet program in order to be imported into the LM-2 software

4 Chart of Accounts This is a sample LM-2 chart of accounts Account DescriptionAccount Type General Fund CheckingCash 36 Dues/Agency FeesIncome 37 Per Capita Tax RecvdIncome 38 Fees, Fines, AssessmentsIncome

5 Chart of Accounts Account DescriptionAccount Type 39 Sale of SuppliesIncome 40 InterestIncome 41 DividendsIncome 42 RentIncome 43 Sale of Invest./Fix AssetIncome 44 Loans ObtainedIncome

6 Chart of Accounts Account DescriptionAccount Type 45 Repayment of LoansIncome 46 On Behalf of Affil.Income 47 From Members for Disb.Income 48 Other ReceiptsIncome

7 Chart of Accounts Account DescriptionAccount Type 50 Repr. ActivitiesExpense 51 Political Activ/LobbyExpense 52 Contrib, Gifts, GrantsExpense 53 General OverheadExpense 54 Union AdministrationExpense 55 BenefitsExpense

8 Chart of Accounts Account DescriptionAccount Type 56 Per Capita TaxExpense 57 Strike BenefitsExpense 58 Fees, Fines, AssessmentsExpense 59 Supplies for ResaleExpense 60 Purchase of Inv/Fix AsstExpense 61 Loans MadeExpense

9 Chart of Accounts Account DescriptionAccount Type 62 Repayment of LoansExpense 63 To Aff of Funds CollectedExpense 64 On Behalf of MembersExpense 65 Direct TaxesExpense

10 Chart of Accounts Account DescriptionAccount Type 67a Payroll WithholdingExpense - Off. 1 Federal WithholdingExpense - Off. 1 MedicareExpense - Off. 1 Social SecurityExpense - Off. 1 State WithholdingExpense - Off. 1 Other WithholdingExpense

11 Chart of Accounts Account DescriptionAccount Type 67a Payroll WithholdingExpense - Emp. 1 Federal WithholdingExpense - Emp. 1 MedicareExpense - Emp. 1 Social SecurityExpense - Emp. 1 State WithholdingExpense - Emp. 1 Other WithholdingExpense

12 Chart of Accounts Account DescriptionAccount Type 67b Payroll Withholding DisbursedExpense Schedule 11 Officer 1Expense - Schedule 11(D) SalaryExpense - Schedule 11(E) AllowExpense - Schedule 11(F) Off. Bus.Expense - Schedule 11(G) OtherExpense

13 Chart of Accounts Account DescriptionAccount Type Schedule 11 Officer 2Expense - Schedule 11(D) SalaryExpense - Schedule 11(E) AllowExpense - Schedule 11(F) Off. Bus.Expense - Schedule 11(G) OtherExpense

14 Chart of Accounts Account DescriptionAccount Type Schedule 12 Employee 1Expense - Schedule 12(D) SalaryExpense - Schedule 12(E) AllowExpense - Schedule 12(F) Off. Bus.Expense - Schedule 12(G) OtherExpense

15 Chart of Accounts Account DescriptionAccount Type Schedule 12 Employee 2Expense - Schedule 12(D) SalaryExpense - Schedule 12(E) AllowExpense - Schedule 12(F) Off. Bus.Expense - Schedule 12(G) OtherExpense

16 Your Chart of Accounts – Options 2 and 3

17 Keeping your Chart of Accounts If you decide to keep your existing chart of accounts, you must add the LM-2 categories identified above.

18 Keeping your Chart of Accounts List your accounts on the Chart of Accounts and list LM-2 categories in that same number series. Example: Officer 1 incurs expenses for reimbursed meals and lodging as well as auto expenses for a union car assigned to him/her.

19 Keeping your Chart of Accounts TravelExpense AutoExpense TravelExpense - Schedule 11(F) Off. Bus. – Officer 1Expense Union Account Only Union and LM-2 Accounts AutoExpense - Schedule 11(F) Off. Bus. – Officer 1Expense

20 Account DescriptionAccount Type TravelExpense - Schedule 11(F) Off. Bus. Officer 1Expense - Schedule 11(G) Other Officer 1Expenses - Schedule 12(F) Off. Bus. Employee 1Expense - Schedule 12(G) Other Employee 1Expense Keeping your Chart of Accounts Union and LM-2 Accounts for Travel

21 Account DescriptionAccount Type TravelExpense - 50 Repr. ActivitiesExpenses - 51 Political Activ/LobbyExpenses - 52 Contrib, Gifts, GrantsExpenses - 53 General OverheadExpenses - 54 Union AdministrationExpenses Keeping your Chart of Accounts Union and LM-2 Accounts for Travel

22 Keeping your Chart of Accounts Union and LM-2 Accounts for Travel An Example – The union credit card is used by Officer 1 to charge expenses including hotel charges ($198 – Hyatt Hotel) and meals ($70 – Outback Steakhouse) related to negotiating a collective bargaining agreement. The $198 – Hyatt Hotel charge included a meal of $30 and an in-room movie charge of $11. The union also charged a conference room for two days of negotiations ($200 – Hyatt Hotel). Roundtrip airfare of $250 was also charged for travel to and from negotiations.

23 Account DescriptionAccount Type Amount Booked TravelExpense - Schedule 11(F) Off. Bus. Officer 1Expense$ Schedule 11(G) Other Officer 1Expenses$ Repr. ActivitiesExpenses$ NegotiationsExpense - 50 Repr. ActivitiesExpenses$ Keeping your Chart of Accounts – Option 2 Proper Bookkeeping

24 Negative Splits – Union & LM-2 Accounts LM Contra AccountExpense($718.00) Account DescriptionAccount Type Amount Booked TravelExpense$ Schedule 11(F) Off. Bus. Officer 1Expense$ Schedule 11(G) Other Officer 1Expenses$ Repr. ActivitiesExpenses$ NegotiationsExpense$ Repr. ActivitiesExpenses$ Keeping your Chart of Accounts – Option 3

25 Another Example Auto$50.00 Schedule 11(F) Off. Bus. Officer 1$50.00 Travel$ Schedule 11(F) Off. Bus. Officer 1$ Union Check written to Officer 1 for reimbursed Travel and Auto expense LM Contra Account($250.00) Keeping your Chart of Accounts – Option 3