Fixed Assets

The TWU Local 100 - LM2 Labor Organization Annual Report for 2010 on statement A - Assets and liabilities line 27 indicates on column A that at the start of the period the fixed assets amount was $230,198 then on column B at the end of the reporting period the fixed assets jumped to an amazing amount of $673,039. A difference of $448,841 which is almost half a million - it also informs you to review schedule 6.

However when you review schedule 6 - Fixed Assets you notice the numbers do not add up to make that difference - on line 5 you are told there are automobiles and other vehicles that are lumped to $505,752. If you follow the instructions of LM2 ‘Report details of all fixed assets, such as land, buildings, automobiles and other vehicles, and office furniture and equipment owned by the labor organization at the end of the reporting period.’ we are aware the automobiles at the possession of TWU Local 100 are leased from their respective companies which are on schedule 9 at a whopping $339,391. So how can you claim you own them instead of leasing as per LM2 instructions? For $505,752 we can get 25 Ford Fusions at $20,000 each - for comparison the TWU Local 100 - LM2 for 2009 on schedule 6 of fixed assets line 5 automobiles and other vehicles the cost on column A was $73,038. That reveals since John Samuelsen took office he acquired more automobiles than the preceding administration. 505752-73038=432714 what a difference of almost half a million which is unsupported by facts which is the number you find in schedule 4 under automobiles.  It’s amazing that those leased vehicles value belong to the bank not TWU Local 100. 

The more you review schedule 6 - Fixed Assets the more that the numbers do not tell a straight story - as we know numbers do not lie. Then on line 6 you are told that there is office furniture and equipment, on column B you are given a cost or other basis at $1,185,636, then on column C total depreciation or amount expensed at $912,849, then on column D you are given book value at $272,788 - almost a significant depreciation value of 77 percent. Now if you review the special tax law provisions intended to help stimulate the economy, businesses are now entitled to take an additional first-year depreciation deduction equal to 30 percent of the value of certain types of qualified property before calculating their normal depreciation deductions. Usually the office furniture and fixtures depreciation cycle is for 7 year property as the table indicated starting at 14.29 percent depreciation. Then gradually going down till the end of the 7th year the deduction is at 4.46 percent and at the eighth year those office furniture do not qualify for depreciation deduction. The question is how the depreciation value exceeded the recommended value of the IRS guideline of 30 percent? Maybe this is a vapor law of depreciation deduction rate at TWU Local 100. In addition if the same office furniture and equipment were claimed as a depreciation deduction in prior years at TWU Local 100 - LM2 of 2009, if you add those two depreciation values of the two years (2009+2010) they exceed their cost - the numbers do not add up - 795875+912849=1,708,724 clearly this depreciation exceeds the cost of $1,185,636 the difference is $523,088 which is another half million.

Secondly those $10 folding tables, $5 folding chairs, desks, phones, computers, copiers, faxes and worn out dilapidated sofas do not add up to $1,185,636. In addition they do not depreciate at the rate of 77 percent, the numbers do not lie - people do.  Therefore those people will have to answer questions from the proper authorities hence New York District Attorney.