ARTICLE XVI - REQUIREMENTS FOR LOCALS NOT USING THE CENTRAL LEDGER ACCOUNTING SYSTEM
Section 1. Those locals that are not utilizing the Central Ledger Accounting System assume the full responsibility of all fiscal matters, which includes but is not limited to:
(a) Maintaining checking and savings accounts, preparing bank reconciliations, and reporting quarterly on forms available from Headquarters.
(b) Maintaining accurate and up-to-date cash receipts and cash disbursement journals.
(c) Maintaining a minute book and submitting copies of all minutes on an annual basis to the Board for insertion in that local's Headquarters file.
(d) Insuring that expenditures are in accordance with SEIU Local 503, OPEU's Constitution, Bylaws, AP&P, and the local’s constitution and bylaws.
(e) Filing quarterly reports with the SEIU Local 503, OPEU Secretary-Treasurer at Headquarters within the deadlines outlined in these Bylaws. Locals will be declared inactive upon failure to file reports for three (3) quarters.
(f) Submitting annually Chargeable and Non-Chargeable Expense Reports in conformity with state and federal law concerning fair share rebates by the deadlines outlined in the Bylaws.
(g) Making an annual audit of the local's fiscal records and providing a copy of the audit report to Headquarters to be placed in the appropriate local file.
(h) Obtaining a federal and, if necessary, a state I.D. number for reporting purposes.
(i) Annually filing a Form 990 with the Internal Revenue Service. (Penalty for late filing is $10 per day to a maximum of $5,000.) A copy is to be sent to Headquarters by February 22 of each year.
(j) Issuing 1099's to entities that were paid amounts of $600 or more for services or interest.
(k) Filing county personal property tax returns where applicable.
(l) Obtaining fidelity bonds for persons handling money. Copy to be sent to Headquarters.
(m) Contacting appropriate city and county officials regarding other taxes for which the local may be liable and submitting appropriate reports with copies to Headquarters.

Section 2. Failure to perform these activities listed in Section 1 will be cause for the Secretary-Treasurer of the Union to withhold any and all rebates until such time as the offending local is in compliance.

Section 3. Failure to perform these activities for one (1) year will be cause for the Secretary-Treasurer of the Union to place the offending local on the Central Ledger System and the Secretary-Treasurer of the Union will become the authorizing signature on the account.

Section 4. The offending local may petition the Member Representation Committee for permission to become responsible for authorization signatures on their respective Central Ledger Account.