REPORT: AUDITS FIND MAJOR FAULTS WITH AFTRA’S BOOKS

At the time of its merger with SAG, auditors discovered numerous faults with AFTRA’s accounting systems, including some 11,000 members listed on its books who shouldn’t have been there because they had not paid union dues, the Hollywood Reporter reported today, citing unnamed sources. The THR report attributed the problem to an out-of-control system that delegated fiscal power to local branches with loose oversight by national executives. “The audits found fault with deficiencies related to bank accounts, accounting systems, IT practices, employee records, membership files, residuals, and more,” the report said. However, it observed that the auditors apparently found no evidence of funds being wrongfully diverted or any other illegal activity. Former AFTRA President Roberta Reardon declined to discuss the trade publication’s allegations, referring to them as “internal national board business.” But former AFTRA secretary-treasurer Matt Kimbrough commented, “SAG-AFTRA looked at AFTRA’s practices. There were concerns and they were addressed. All money was accounted for, and there was no malfeasance. That was [the merged union’s] year’s work — to clean this up and move forward.”