LEAGUE OF UNITED LATIN AMERICAN CITIZENS

NATIONAL LULAC TREASURER’S REPORT

By: Paul “Pablo” A. Martinez, National LULAC Treasurer
June 15, 2019

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 LEAGUE OF UNITED LATIN AMERICAN CITIZENS
Office of National Treasurer

Paul “Pablo” A. Martinez

National LULAC Treasurer

June 15, 2019

Re: Treasurer’s Report- Status of Audit

Dear National LULAC Board of Directors, National Executive Committee and LULAC
Membership:

The following are copies of graphics from Peña, Briones, McDaniel and Company out of El Paso,
TX. The is the Accounting firm that LULAC National contracted to conduct the previous audits
and the present or follow up audit.
SUMMARY
I thank our Chief Financial Officer, Ms. Lisa Smith for provided me with the audit reports covering
both the LULAC National Organization (LNO) and the LULAC National Institute (LNI). These
attached copies are reports and power point slide presentations that provide a five-year period
summary comparison on expenses and revenues generated in both the LNO and LNI.
On June 4, 2019, there was a conference call meeting between Mr. Rene Peña, National Staff, the
National President and I at 8:00 am MST.
The audit was positive and reveals that the National LUALC staff are complying with all of the
recommendations and have implements proper finance controls and limited their spending to only
the essential functions.

FINANCIAL REPORTS
The following attachments are the Audit Reports submitted by Mr. Rene Peña, Principal for Peña,
Briones, McDaniel and Company out of El Paso, TX. These Reports are on the National LULAC
National Organization and LULAC National Institute covering the fiscal year 2017-2018.

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Recommendations:
Essentially both the LNO and LNI have worked diligently to save on expenses. These reports
reflect the significant reduction of expenses in travel and on contract services. However, both
entities have not generated enough revenue such as donations, grants or sponsorships. We are not
receiving the commitments from corporate sponsorships like we have in the past. As of our
telephone conference call of June 4, 2019, no significant commitments from corporate sponsorship
have been identified in the future other then the National Convention.
As mentioned in previous reports, I have alluded to the fact that we need to create partnerships as
we did in the past. If the LNO or LNI create community partnerships with our corporate alliances,
this will create more revenue and place us in a better position. Mr. Rene Peña also expressed that
Corporate American is thriving, and we should be able to seek partnerships and donations. The
question is how are we doing in comparison to other national civil rights organization or Hispanic
counterparts?
I have requested information on the status of our Corporate Alliance and as of this report, I have
not been informed, summoned, invited or briefed about any meeting with this Committee. As
National Treasurer, I have been asked by several members and I have no answers with respect to
the status of the Corporate Alliance or if there have or have not been any meetings this fiscal year.
In my official capacity as an elected member of this Board, if there was such a meeting. I should
be part of these meetings. It has been a past practice that my predecessors have been privy to these
meetings.
I am aware that National has focused on membership drives in recruiting associate memberships
and even experienced organizers or recruiters have been hired to generate these new associate
members and possibly form new councils. This would generate funds for LNO because this is how
LNO generates most of its funding. The general idea is emulating ACLU, NRA and organized
labor organization the generate their funding on membership and dues. LULAC is not structured
solely on associate memberships. These members don’t belong councils and have no voting rights.
The idea is to provide the options to be placed in councils of their choice. This will need strong
consideration and a change in the Constitution, which has the membership concerned for whom
that can or can be admitted into their respective councils. The present Constitution allows each
council the right to approve or disapprove applicants.
There has been some discussion to hire young adults to actively recruit new councils. This is a
good idea; however, age or generation should not be a major factor or consideration. What should
be a consideration is a person with LULAC experience in organizing councils. A member that
understands the operation, history, and dynamics of the League.
There is a question as to the responsibility of the Board with respect to generating funds? Our
fiduciary responsibility lies on assuring that the League is managed well and that we comply with
our constitutional responsibilities. Fund raising is part of this, if we had no staff. What was
recommended at our first Board Meeting after the convention last year was for each of us to
identify local fortune 500 corporations or businesses that are headquartered in our respective states.
Once we identify them, we would furnish the contact information to our CEO, Ms. Sindy

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Benavides. We provided the New Mexico information to Ms. Benavidez She was able to meet
with our Albuquerque Chamber and they facilitated meeting for her in October 2018. If we can all
at least do this in each our states, this will help our CEO identify potential donors and sponsors.
This is one way that we can rekindle our relationship with our Corporate Alliance and regain the
trust and support.

Respectfully Submitted,

Paul “Pablo” A. Martinez

National LULAC Treasurer