Scribes scrambling on report

WGAW misses budget deadline

The federal government has sent the Writers Guild of America West a delinquency notice over its failure to file its annual budgetary report for the fiscal year ended March 31.

The Dept. of Labor’s notice came three months after the June 30 deadline for filing the LM-2 report under the Labor-Management Reporting and Disclosure Act.

The WGA West report will be the first filed under more stringent rules enacted in 2004, requiring significantly higher levels of financial detail such as any cash receipts over $5,000 from a single entity and a functional breakdown of union disbursements.

WGA West rep Gabriel Scott responded to a request for comment by saying, “In order to comply with the greatly enhanced disclosure requirements, the guild’s LM-2 report has been delayed.  We expect to file shortly.”

Violating Dept. of Labor reporting rules can lead to civil and criminal enforcement actions.

The WGA East filed its LM-2 report on the June 30 deadline, showing assets of $15.24 million, including $11.78 million investments; $424,697 in liabilities and $4.2 million received in dues from 3,770 members. Top expenses: $497,024 for rent and utilities to S.L. Green; $326,357 for legal services from Altshuler, Berzon, Nussbaum, Rubin & Demain; $296,522 for legal services from Spivak, Lipton, Watanabe, Spivak, Moss & Orfan; and $181,884 for residuals processing to the WGA West.

Several months ago, the WGA West sent a 32-page annual report to its 9,000 members with the disclosure that the WGA West had concluded its fiscal year ended March 31 with a $202,611 deficit on revenues that rose 5.2% to $22.4 million due to higher earnings; investment income more than doubled to $1.9 million.

Expenditures jumped 13.9% to $24.5 million due to settling out the contract of fired exec director John McLean, hiring Korn/Ferry to conduct a search for a replacement, negotiating changes in the constitutional agreement with the WGA East and increasing staff of the organizing department from seven to 17.

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