One of the top challenges that faces labor unions is the annual LM-2 reporting process. Required for labor unions by the Office of Labor Management Standards (OLMS), this document is used by regulators, the public, and union members to show where the money is going.
The Basics of LM-2 Reporting: Must-Track Information
Documenting expenses, activities, and other public information for each labor organization subject to the LMRDA, CSRA, or FSA with total annual receipts of $250,000, this form tells readers when the next union election is, how many members the union has, the salaries of officers and staff, and other useful information:
- Subsidiary organizations;
- Political action committee (PAC) ownership or participation;
- Cash Flow: whether the union discovered any loss or shortage of funds;
- Membership Information: number of members, rates of dues and fees
- Assets: 7 categories such as cash and investments;
- Liabilities: 4 categories such as accounts payable and mortgages payable;
- Receipts: 16 categories including as dues and interest;
- Disbursements: 18 categories including payments to officers, payments to employees, office and administrative expense, loans payable
Not only legally required, an accurate LM-2 is key to providing the transparency that your members expect and the public deserves. Unfortunately for finance professionals and others tasked with generating this report, the process of tracking, allocating, and documenting every receipt over a certain threshold is laborious and rife with manual processes.
Luckily, a new solution from Wipfli has made it easier than ever to automatically track Schedule 14, 15, 16, 17, 18, 19 and 20 disbursements more easily than ever. Announced earlier this month, LM-2 automation for Sage Intacct is an innovative new product that reduces time and increases accuracy.
LM-2 Automates the Time-Consuming Expense Tracking and Allocation Process for Labor Unions
Labor union finance and accounting professionals understand the importance and time-consuming process of recording and reporting of the annual LM-2 to the Department of Labor. LM-2 on Sage Intacct is an integrated module for your deployment of Sage Intacct, configured to meet your unique organizational requirements. This module streamlines the full cycle supporting the creation of your LM-2 reporting, from data entry, tracking, and file generation for submission to the Office of Labor-Management Standards (OLMS).
This product allows your Sage Intacct users to track AP bill entries and expense report entries, with specific defaults or overrides to track against any of the following LM-2 schedules:
- Schedule 14 – Other Receipts
- Schedule 15 – Representational Activities
- Schedule 16 – Political Activities & Lobbying
- Schedule 17 – Contributions, Gifts & Grants
- Schedule 18 – General Overhead
- Schedule 19 – Union Administration
- Schedule 20 – Benefits
In addition to facilitating invoice and expense tracking, LM-2 on Sage Intacct automatically generates an XML or CSV file at the end of the year in accordance with OLMS for easy submission, saving labor unions time and money.
Do More with Sage Intacct from Wipfli
Designed to provide affordable and advanced functionality for the modern organization, Sage Intacct offers a simple pricing model, user-friendly interface, and ease of customization and integration that make your job easier. As one of the many ERP solutions we customize for our labor union clients, Sage Intacct continues to gain traction with the labor community. Learn more about the work we do and contact us for more information.