How to Fill Out and File the IAFF Local Union Auditors’ Report

The IAFF Local Union Auditors’ Report is an annual form that every IAFF-affiliated local must complete and submit to the General Secretary-Treasurer within 180 days of the close of its fiscal year.¹ The form documents how the local received and spent its money over the previous year and confirms compliance with the financial policies in Article XIII, Section 9 of the IAFF Constitution and By-Laws. Two reviewers who are not on the executive board reconcile the books against bank records, complete the three sections covering revenue, expenses, and assets, and send the signed report to the IAFF.

Who Is Allowed to Sign the Report

The form’s general instructions require that it be “prepared and certified by the local union trustees or audit committee,” and at least two reviewers must sign.¹ The people submitting it cannot be members of the executive board or anyone else with spending authority. If the person who signs the checks also reviews the books, the audit has no real teeth.

A local can instead hire a Certified Public Accountant or chartered accountant to perform the review. Professional fees vary with the local’s size and complexity.

Whoever handles the audit carries real legal weight. Under federal law, union officers, agents, and representatives occupy positions of trust and must manage the organization’s money and property solely for the benefit of members, in line with the union’s constitution and bylaws.² That duty includes accounting for any profit received in connection with union transactions. Blanket clauses in a local’s bylaws that try to shield officers from liability for breaching these duties are void as a matter of public policy.

Records to Pull Before You Start

The form states that an invoice or other supporting documentation is required for every expenditure.¹ Before opening the form, gather the following for the full fiscal year:

Bank statements and cancelled checks covering every account.
Invoices, vouchers, and receipts for every disbursement.
Per capita tax payment receipts showing amounts remitted to the International.
The receipts journal and dues checkoff records from the employer.
Payroll records for all officers and employees, including stipends and reimbursed expenses.
Fixed asset records listing any property, equipment, or vehicles the local owns.

The Department of Labor requires unions to keep these records, along with vouchers, worksheets, receipts, and applicable resolutions, for at least five years after the reports they support are filed.³ Minutes that establish officer salary levels may need to be kept longer if they verify information in a report filed within that five-year window.⁴

Locals can keep these records electronically. The system must be able to store, index, retrieve, and reproduce records, and it must prevent unauthorized changes or deletions.⁴ Before destroying any paper originals, test the digital system to confirm it produces legible, complete copies. If a document doesn’t transfer accurately, keep the original. During an OLMS audit or investigation, the local must provide the hardware, software, and personnel needed to access and reproduce those electronic records.

Working Through the Form

The report is divided into three sections (annual revenue, annual expenses, and assets and liabilities) along with a set of compliance questions about the local’s adherence to IAFF financial policies.¹

Annual Revenue, Lines 1 Through 5

Report every dollar the local received during the fiscal year.

Line 1, initiation fees: one-time payments collected from new members.
Line 2, per capita (dues) received: regular membership dues collected through payroll deduction or direct payment.
Line 3, interest: earnings from savings accounts, certificates of deposit, or other investments.
Line 4, other revenue: fundraising proceeds, donations, rental income, or any other source. Attach a separate list describing these sources.
Line 5, total revenue: the sum of Lines 1 through 4.

Annual Expenses, Lines 9 Through 12

Line 9, salaries and payroll-related expenses: compensation paid to officers and employees, including stipends, payroll taxes, and benefits.
Line 10, per capita tax and fees: amounts remitted to the IAFF International and any state or provincial association.
Line 11, other expenses: office supplies, legal fees, event costs, charitable contributions, and anything else. Attach a list detailing these items.
Line 12, total expenses: the sum of Lines 9 through 11.

Assets and Liabilities, Lines 13 Through 18

Line 13, cash, savings, and investments: the balance in all bank accounts and investment holdings at fiscal year-end.
Line 14, land and buildings: the value of any real property the local owns.
Line 15, other assets: vehicles, equipment, or other property. Attach a list.
Line 16, total assets: the sum of Lines 13, 14, and 15.
Line 17, total liabilities: outstanding debts, loans, or obligations.
Line 18, net assets: Line 16 minus Line 17.

Line 13 has to match the actual funds held in the local’s bank accounts at the close of the fiscal year. If the ledger, the bank statements, and Line 13 agree, the report is solid. If they don’t, track down the discrepancy before submitting.

The Reconciliation That Backs Up the Numbers

The Department of Labor publishes a 10-step audit procedure for union trustees. It is written for DOL compliance but covers everything the IAFF form requires:⁵

Trace cancelled checks to both the bank statements and the disbursements journal.
Scan the disbursements journal for unusual entries.
Trace employer dues checkoffs to the receipts journal and bank statements.
Confirm that receipts from all other sources were properly recorded and deposited.
Identify all bank accounts, verify their ending balances, and review withdrawals and transfers.
Inventory fixed assets.
Confirm the LM annual financial report for the latest completed fiscal year was filed on time.
Determine whether financial records were properly maintained.
Verify that all officers and employees who handle funds are adequately bonded.
Confirm that no officers or employees were loaned more than $2,000 by the union.

The first five steps are the core reconciliation: matching what the books say against what the bank says. Most errors surface there.

The bonding step is easy to overlook. Federal law requires every union with property and annual receipts above $5,000 to bond anyone who handles funds for at least 10 percent of the funds handled in the prior fiscal year, up to a maximum of $500,000.⁶ “Handling” includes anyone authorized to sign checks, even if they never physically touch the money.

Submitting the Report

Once the report is complete, at least two trustees or audit committee members sign it. Then send it to the IAFF General Secretary-Treasurer by one of two methods:¹

Email the completed form to financialreport@iaff.org.
Mail the original to the IAFF General Secretary-Treasurer at 1750 New York Ave NW, Washington, D.C. 20006.

The deadline is 180 days after the close of the local’s fiscal year. Keep a copy in the local’s files.⁷ Meeting the deadline keeps the local in good standing, which protects its voting rights at conventions and its eligibility for International benefit programs. The General Secretary-Treasurer also has authority to examine any local’s books and records, or to send a representative to do so, to confirm compliance with the Constitution and By-Laws.⁸ Members have the right to inspect the copy kept in the local’s files.

What This Form Does Not Replace

The IAFF auditors’ report satisfies the International’s internal requirements only. It does not take the place of the annual LM report your local owes the DOL’s Office of Labor-Management Standards, which is due within 90 days after the end of the fiscal year.⁹¹⁰¹¹ Each of those filings runs on its own schedule and rules; completing the IAFF audit does not satisfy either one.

1
International Association of Fire Fighters. IAFF Local Union Financial Audit Report and Review
2
Office of the Law Revision Counsel. 29 U.S. Code 501 – Fiduciary Responsibility of Officers of Labor Organizations
3
Office of the Law Revision Counsel. 29 U.S. Code 436 – Retention of Records
4
U.S. Department of Labor. Electronic Recordkeeping
5
U.S. Department of Labor. Conducting Audits in Unions – A Guide for Trustees
6
U.S. Department of Labor. Bonding Requirements
7
International Association of Fire Fighters. Resolution No. 14 – State and Provincial Association and Joint Council Financial Reports and Audits
8
International Association of Fire Fighters. Constitution and By-Laws of the International Association of Fire Fighters – Section: Article VI, Authority and Duties of International Officers
9
U.S. Department of Labor. Form LM-1 Labor Organization Information Report and Forms LM-2, LM-3, LM-4
10
Internal Revenue Service. Form 990 Series – Which Forms Do Exempt Organizations File
11
Internal Revenue Service. Form 990-N e-Postcard