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TERRENCE R. MOONEY C.P.A.

Certified Public Accountant


247 NEW JERSEY AVENUE ABSECON, NEW JERSEY 08201

MEMBER OF NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

December 6, 2011 Mr. Frank Spencer, Supervisor Eastern District Vice President 395 Hudson Street New York, New York Re: Financial Accomplishments during supervision Mr. Spencer, I would like to take this opportunity to represent the financial accomplishments made at the New York District Council during the period of August 2009 through November 2011. As noted in my finding report to the members and the International in October of 2009 there were accounting deficiencies that needed to be addressed by this council to ensure the safeguarding of the assets of its members. These following accomplishments are a tribute to the talented employees of this council and the dedication to perform their obligations to the members. Although this list is not all inclusive it will provide the members an overview of the financial steps taken under the supervision as they related to finance. Please review the following: 1- Restructured the accounting department to enhance both accounting compliance as to policies and practice but also Internal Controls. The department is now supervised by the Director of Operation and overseen by a Certified Public Accountant and her assistant. 2- Instituted an accounting policy to report consistent with Department of Labor Rules and Regulations. 3- Instituted an Internal Control Policy as it relates to accounts payables. 4- Instituted a Petty Cash Policy 5- Instituted a credit card policy consistent with IRS and DOL regulations controlling spending, reporting and the use of points earned. 6- Developed a monthly line item budget to let management oversee the operations on a prospective basis and assist in controlling those management decisions based on expenditures. 7- Instituted an accounting process to guarantee the accounting records were both current and accurate. 8- Instituted a cash management system to increase investment income on deposits and limit risk as it relates to cash receipts. 9- Reduce the issue of concentration of risk as it relates to the FDIC and financial institutions.

10- Restructured the automobile policy, purchases and insurance for significant savings and reduced liability. 11- Instituted a bid policy on major purchases and expenditures. 12- Instituted a LM 2 analysis program to assist in the supervision of the councils locals. This policy reduced the expenditures at that level materially. 13- Instituted LM 30 compliance to all council employees. 14- Instituted a salary program that would ensure transparent wage steps and scale. This included mandatory evaluations and annual training. 15- Instituted an allocation analysis for the OOWL and the benefit funds for accurate reimbursements to the Council. 16- Instituted a review of the Investment Policies and initiated timely meetings with brokers as they relate to said investments. 17- Provided Financial Secretary training to the officers and trustees of each local of the council. 18- Enhanced the Grievance data base system with the department heads 19- Provided enhancements to the benefit funds as it relates to the management of contractor audit results. 20- Provided enhancements to the benefit funds as they relate to the employee assistance program. 21- Set up the Banner Corporation, books of record, filings and the accounting system. 22- Instituted monthly financial reporting to the delegates. 23- Evaluated and terminated the underfunded Officers Staff pension plan. 24- Evaluated and hired an In-house Human Resource Coordinator. 25- Instituted compliance and a wage formula for the apprentice training employees 26- Developed an audit committee compliance manual. 27- Provided assistance and guidance to the Locals as issues related to scholarship and or other local funds. Attached is the current year end 6/30/11 LM-2 for the New York City & Vicinity District Council of Carpenters. Also presented is a comparison of the expenses as reported on the LM-2s for the current year and the two previous years. Due to the policies, procedures, and internal controls initiated since the supervision beginning in August of 2009, there has been a dramatic decrease in the Operating Expenditures of the Council. The positive effect of safeguarding the assets of the members through these policies and procedures has resulted in a decrease in the normal operating expenses of the Council of over $4.1million from 6/30/09 to 6/30/10 and an additional decrease of over $646,000 from 6/30/10 to 6/30/11. In addition, the locals of the New York District Council were provided Financial Secretary and Trustee training in November of 2009 to provide fiduciary guidelines and responsibilities. The expenditures for the locals on June 30, 2009 prior to supervision and training were $ 15,420,879. For the following two years the expenses paid were $ 12,374,364 and $ 11,172,143, respectively. The decrease in the local spending from year end June 30, 2009 to June 30, 2011 was 4,248,736 or 28%. As stated above this list is not all inclusive but does reflect the management policies issued in order to protect the well being of the members. If you have any questions please contact my office. Sincerely, Terrence R. Mooney CPA

Tel: 609-407-0056 Fax: 609-407-9956

E-Mail: tmooney@trmcpa.com

NYC & Vicinity DC of Carpenters Expense Comparison Change from 09 to '10 Change from 10 to '11

6/30/2009 Expenses per LM-2: Representation Activities Political Contributions GO Union Admin Subtotal Benefits Per Capita Tax Fines Purchases of Investments To Affiliates Direct Taxes Payroll Withholdings Total Expenses Less:Purchases of Investments and Payments to Affiliates Subtotal $14,587,987 $27,077,354 $9,310,676 $862,569 $282,122 $4,634,692 $4,570,697 $19,660,756 $6,159,634

6/30/2010 $8,252,597 $787,126 $285,352 $6,590,029 $1,868,085 $17,783,189 $5,240,153

6/30/2011 $5,831,702 $533,315 $60,408 $10,857,698 $1,449,820 $18,732,943 $5,122,714 $46,550 $6,965 $6,488,043 $773,778 $7,257 $31,178,250

$14,587,987 $567,146 $686,071 $3,747 $41,665,341

$35,588,660 $694,572 -$6,363 $59,300,211

$35,588,660 $23,711,551

-$6,488,043 $24,690,207

Less Other Non Operating Expenses: Local 608 Expenses Supervision Expense Anti Corruption/RO and Staff -$666,539 Inspector General's Office Total Adjusted Expenses $26,410,815 reductions per year

-$4,130,308 -16%

-$217,498 -$730,382 -$483,165 $22,280,507

-$349,771 -$496,782 -$1,194,662 -$1,015,260 -$646,774 $21,633,732 -3%