Reports, Receipts Missing
Spending Probe Of Day-Care Local

By MEREDITH KOLODNER

The results of an audit looking at possible misuse of members' dues money by Day Care Workers Local 205 of District Council 1707 are expected by the end of June.

CONNIE DERR: Sees an isolated problem.

The local was put into receivership by the American Federation of State, County and Municipal Employees on Jan. 31 due to "financial irregularities." The local's 16 board members have been suspended for the period of the receivership, in accordance with union rules. If charges are filed against any board members, they could face expulsion from the union.

'Improper Use of Dues'

"I saw a problem, and I called [AFSCME]," said District Council 1707 Executive Director Raglan George. "I thought the way they were spending the money was an improper use of dues money."

Further potential problems were discovered in the course of AFSCME's routine audit process. Officials say that required reports, financial documents and receipts were missing. Sources familiar with the situation say there are questions about non-union-related trips that might have been taken at members' expense.

"This is a very isolated issue," said Connie Derr, the administrator overseeing the local who is also acting regional director for AFSCME. "It was just in that local, and we're not talking about a large amount of money."

She noted that none of the board members are currently charged with any wrongdoing and that if there are charges filed, it is unlikely that the entire board will be implicated. The internal audit will determine whether the missing documents were simply a matter of failure to file the proper paperwork or whether there was misuse of funds.

'Zero Tolerance'

The receivership will not be immediately lifted after the audit is finished. "The international union has zero tolerance of any financial irregularities," said Ms. Derr. "The local will stay under an administrator for as long as is necessary." She added that she did not think that it would last for an extended period of time.

Suspended Local 205 President Glen Huff could not be reached for comment.

"The board members are very fine people and very active," said G.L. Tyler, DC 1707's political action director. "But you have problems when there is a leadership that is not functioning properly." He said he believed that many of the board members, all of whom are rank-and-file members, only needed better direction and re-training.

Mr. George said he was confident that AFSCME's receivership would put the local back on solid footing. "Whatever improprieties happened," he said, "they will be getting to the bottom of it and cleaning it up."