CTU Audit?

Where is the CTU Audit?
By Theresa Boyle 

Dear CTU delegate,

My name is Therese Boyle and I am a citywide clinician delegate.  On June 6th, the HOD will be asked to approve the proposed CTU budget FY19.  We are facing a $3 million deficit if we don't make changes. We left May's HOD with limited information about where the budget cuts would be. Last year (FY18), we faced a huge deficit as well; we fixed the hole by shifting the Quest Center salaries over to the CTU Foundation budget.  We also agreed to make other cuts: $56,000 saved because CTU staff took furlough days in solidarity with CTU members, $50,000 savings in lawyer fees, $45,000 saved by eliminating the pocket calendars, $10,000 cut from the CTU Holiday party, and several other cuts. 

It is very important that we make an informed decision on June 6th.  Before you vote to approve the FY19 budget, I ask that you consider the following:

1.  The CTU Constitution and By-Laws require that "Each year, the Financial Secretary shall furnish an audited report of the Union which shall be printed in the Union’s publication"; CTU has not published the audits in the CUT for the past four years.  I have requested the audit reports from Financial Secretary Maria Moreno via email and spoke to James Gillmeister, CTU Financial Director, by telephone last week about getting the audits; however, I have not yet received them.  Why are the audit reports important?  Because the budgets we approve are simply a good faith proposal of how CTU plans to spend our money.  The audits tell us what really happened with our money during the year. The audits tell whether or not we stuck to the budget that the HOD approved. Delegates and dues paying members have a right to review the CTU budget audits that were completed for 2014, 2015, 2016, and 2017.

2. A review of the audit reports may help us understand how we went from having $8.8 million in reserves (see attached Resolution) in 2015 to only $3.5 million in reserves in March 2018(March statements attached).  Delegates  and members have a right to understand how we spent $5.3 million in reserves over the past three years.

3. The CTU IRS 990 (attached) for 6/30/2016 shows cash of $9,287,239.  The March 31, 2018 statement of financial position (attached) shows a cash balance of $2,409101.  Cash has declined $6,878,138 over the last 21 months.  Where did all this cash go?

4. Delegates and dues paying members have a right to a clear and detailed explanation of the Million Dollar Loan CTU gave to the CTU PAC.  Describing the loan as a "loan to a relative which your relative pays back" is not a clear explanation.

5.  CTU has not yet filed its IRS 990 Form for the year ending 6/30/17.  Why not?

Fellow delegates, I urge you to make sure you are fully informed before voting to approve a budget on June 6th.  If you are unsure, wait until you have all the information you need.

For your review, I am attaching a copy of the Million Dollar Loan questions I submitted on May 20th to CTU leadership, CTU Trustees, and CTU Eboard members (NO response to these questions).  I am also attaching a copy of the 2015 Resolution that seems to serve as HOD approval for the loan.

In solidarity,

Therese M. Boyle