INDEPENDENT AUDITOR'S REPORT

"In our opinion the financial statements referred to present fairly, in all material respects, the Statement of Assets, Liabilities, and Net Assets - Modified Cash Basis of the University Professional and Technical Employees (UPTE), CWA Local 9119 as of December 31, 2003 and the Statement of Revenues, Expenses, and Net Assets - Modified Cash Basis for the year then ended on the basis of accounting."

Allen Monahan & Company
Certified Public Accountants, LLP
Rancho Cucamonga, California
July 23, 2004

Note 8. Contingent Liability

"During 2004, but prior to the issuance of these financial statements; the University, Professional and Technical Employees, CWA Local 9119 agreed to an out of court legal settlement of $885,000 for prior unpaid overtime wages. The union arranged to finance the settlement with a loan through the Communications Workers of America which will be amortized over ten years. The settlement was classified as:"

  • Salaries..................................................... $410,000.00
  • Legal Services........................................... 475,000.00
  • CWA Liability $ 885,000.00
  • Estimated Payroll Taxes........................... $ 41,000.00
  • Total Liability $ 926.000.00


    • These excerpts were taken from the UPTE -CWA Annual Report and Audit. The full report can be viewed at http://www.upte.org/HudsonRpt_members.pdf