REPORT: June 2006

From the President

A promise to our members

by Verlia Brown, MA, RN, C

As I write this column, the Board of Directors is dealing with one of the most difficult situations I can remember since becoming a member of NYSNA.

Board members were informed in early June that John T. Daley, NYSNA Chief Financial Officer, had been arrested by local police on charges of grand larceny, forgery, and falsifying business documents. All of us felt varying degrees of shock, disbelief, outrage, and sadness.

“Jack,” who had worked at NYSNA headquarters in Latham for five years, is accused of stealing more than $1 million from NYSNA and its members. If convicted, he faces up to 25 years in prison. He was terminated as CFO shortly after it was discovered that he had been writing checks to himself and “signing” them with a stolen signature stamp.

Many of us appreciated Jack’s financial expertise. His advice helped us develop a strategy for balancing NYSNA’s budget and reducing costs in several areas. All of this positive work has been overshadowed, of course, by this apparent betrayal of our trust.

Several important things I’d like you to know:

• The check discrepancies were discovered by NYSNA staff, not by the bank or NYSNA’s outside auditor. The staff took immediate and appropriate steps to ensure that no further damage could be done. We also have initiated aggressive legal action at local and state levels to recover these funds.
• Although $1 million is certainly a large sum, it represents less than 1% of NYSNA’s budget over the four-year period in question. The theft will have no effect on NYSNA services or the financial stability of the association.
• Money in the NYSNA Pension Plan and Benefits Fund was not touched, as it is administered by a separate company. Funds that members have contributed for pension and health benefits are secure.
• The Board of Directors has authorized a comprehensive “internal controls audit” by an outside firm. We expect the audit will identify areas in which we can improve the security of our financial management system.
• NYSNA has notified the U.S. Department of Labor about the situation. Federal law enforcement agencies will determine whether charges can be filed related to possible violations of federal labor law.

For those of you who may be concerned about NYSNA’s reputation as an association and union, let me share a comment that was made to our attorney by an official at the U.S. Department of Labor.

“These nurses are something else: I have never seen a union so aggressively take action in a situation such as this. I’ve been a union member for 21 years, and only hope my union would react so quickly to protect my rights.”

I promise you that I and the Board of Directors will continue to do everything necessary to protect our members’ interests both now and in the future.
Let us give our staff our love, understanding, and support. May God bless NYSNA.