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Keeping the Records Straight
Prepare the Budget

Overview

Membership dues is the primary source of revenue that a Local will receive, but it does not have to be the only income stream. If adequate safeguards are adhered to, interest income from investments can offer another income stream to the Local union. Budget surplus can be used to improve the financial solvency of any organization with the adoption of investment control procedures. The local’s finances can be protected and the union officers can perform their fiduciary responsibilities by following several short safeguards. There is a basic consideration involved in following any control procedure it is that the funds belong to the membership at all times. These funds are not to be used indiscriminately. The primary responsibility for safeguarding and use of these funds resides in the elected officers. This responsibility cannot be delegated to anyone else. Adequate controls on the use of the local’s funds are essential to the fiduciary responsibility by the local’s elected officers.

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