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Suggested Advisory Neighborhood Commission Financial Procedures

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SUGGESTED ADVISORY NEIGHBORHOOD COMMISSION FINANCIAL PROCEDURES

The following guidelines are presented as the minimum procedures which should be established and followed by each ANC to promote financial accountability.

All checks must bear the name of the ANC on the face of the check.
All ANC checks must be pre-numbered by the bank.
A commercial type of checkbook which has check stubs with sufficient space for entering the amount of each cheek end a brief explanation of the nature of the disbursement must be used.
All expenditures by the ANC must be approved first by a majority of the Commissioners in a public meeting of the Commission.
All checks must be issued by the ANC in consecutive order on pre-numbered checks.
All ANC checks must be signed by at least two officers of the ANC, one of which must be the Treasurer. The authorized check signers must be the elected officers of the ANC (Treasurer, Chairman, Vice-Chairman, or Secretary). The bank must be notified immediately when an authorized check signer resigns or leave the ANC for any reason.
The signing or counter-signing of blank checks is prohibited. All blank checks must be under the direct control and accountability of the Treasurer.
The practice of writing checks to "Cash" or "Bearer" is prohibited .
Voided or spoiled checks must be mutilated to preclude subsequent use. These checks; must be retained by the Treasurer for the purpose of accounting for consecutively numbered checks belonging to the ANC.
Prior to disbursing funds, the Treasurer must ensure that a voucher package is prepared which contain the following:
(a) An original invoice or receipt from the supplier of good s or services.
(b) A signed statement must be attached to the invoice or written on the invoice by the ANC representative who receives the good s or services which states:
"I certify that the good s or services described on the attached invoice have been received and represent bona fide e expenses of the ANC."
(c) The date paid and check number must be entered on the original invoice.
(d) All vouchers must be filed in check number sequence.
All voucher packages must be retained for a period of at least seven years.
No expenditure of any amount may be made unless authorized by the ANC in a public meeting, either specifically or as a general budget item adopted and recorded in the minutes of an ANC meeting.
All ANC disbursements must be approved by the Commission in a public meeting and recorded in the minutes for that meeting.
Disbursements of funds totaling $50 or more, or in any amount for personal services must have specific prior approval of the ANC and ouch approval must be recorded in the minutes. Approval of personal services payments must name the person who will receive compensation and indicate the rate of pay and maximum hours of service. If an expenditure for personal services is made without the Commission's approval, the amount will be considered a personal expense of the Treasurer and the officer co-signing the check on which the disbursement was made unless or until the disbursement is subsequently approved by the full Commission in a public meeting and recorded in the minutes.
A payroll register must be maintained to record all paychecks issued to employees.
Federal and District of Columbia income taxes and Federal social security taxes are required to be withheld from all salary payments to employees for services performed.
A petty cash fund of not more than $50 may be established. Reimbursements of not more than $50 may be made from the petty cash fund by the Treasurer for authorized purposes of the ANC. A reimbursement from petty cash may be obtained upon presentation of appropriate supporting documentation, such as cash register receipts, invoices, or other appropriate documentation.
The ANC's bank statement and canceled checks must be mailed by the bank directly to the Treasurer on a monthly basis. The Treasurer must reconcile the bank statement to the checkbook within 15 days of receipt of the bank statement.
The bank statement and bank reconciliation must be reviewed by the Chairman or Vice Chairman of the ANC, who must indicate their review by initialing the bank reconciliation.
At least once every three months, the Treasurer must prepare a quarterly report on a form provided by the Office of the District of Columbia Auditor. Information provided by the ANC on this form will consist of the beginning cash balance, a summary of all receipts and expenditures, and the ending cash balance. The completed quarterly report form must be presented to the ANC for review and approval in a public meeting within 30 days following the end of each quarter. The minutes of the ANC meeting must reflect the review and approval of the quarterly report by a majority of the Commissioners. A Copy of the quarterly report, signed by the Treasurer and Chairman and attested by the Secretary. must be filed within seven days of approval by the Commission with the District of Columbia Auditor.

HOW AN ANC MAY USE ITS MONEY

An ANC may expend its funds:
1. For neighborhood enhancement
2. For public purposes that d directly benefit the neighborhood commission area
3. For nominal refreshments served at ANC meetings
4. To pay for supplies, equipment, staff salaries, and other expenses necessary for the functioning of the ANC's office.
5. For local transportation expenses of a Commissioner officially representing the ANC at public hearings or meetings or when engaged in official ANC business.
6. For health and life insurance for an ANC employee.
An ANC may not expend its funds:
1. To initiate a legal action in the courts of the District or in Federal courts (not provide financial support to others for the same purpose).
2. To operate programs directly or by grant that duplicate already available government programs or services, nor may it conduct programs on a contractual basis with existing governmental agencies
3. During a vacancy in the office of Treasurer
4. When a current and accurate statement and bond (or equivalent) are not on file with the D.C. Auditor
5. To make a direct grant to a public school
6. For commissioner training or business cards, in that these expenditures are not for public purposes
7. To purchase rickets for commissioners to attend programs to listen to various persons speak
8. To purchase food such as pizza, cold cuts, chicken, salads, etc. to be served at ANC meetings or other ANC functions
9. For partisan political activities, personal subsistence expenses, or ANC compensation
10. For out-of-town travel
11. To purchase property insurance covering its office equipment.
An ANC may receive donations
1. Up to $400 per individual per calendar year without Council approval
2. Through solicitation only with Council approval. up to limits stated above.

ANC FIDUCIARY RESPONSIBILITIES

Ensure that monies are deposited into a checking account that is an FDIC-approved banking institution located in the District.
Treasurer must file bonding information on a Security Fund Agreement form to the Auditor within 30 days of assuming office as Treasurer.
Commissioners must ensure that all expenditures are authorized by the full ANC and ensure that minutes are maintained to document the approval of all expenditures.
Maintain accounts on a fiscal year basis, beginning October 1 and ending September 30.
Treasurer shall prepare quarterly financial reports and present them to the Commission for consideration at a public meeting of the ANC within 30 days of the end of the quarter. The quarterly report is a public document that should be made "available for public inspection during the normal office hours of the Commission."
Assure that fiscal management and financial activity authorized by the ANC is consistent with the rules and regulations that govern ANC expenditures.
Ensure protection of the District's assets.

TYPICAL PROBLEMS ENCOUNTERED WITH QUARTERLY REPORT SUBMISSIONS

Beginning balance is incorrectly stated.
Total amount reported for disbursements is inconsistent with separate check listing.
Quarterly report lacks date report was approved by the full ANC.
Quarterly report lacks the three required signatures (Treasurer, Chairperson, and Secretary).
Expenditures rioted in the wrong categories.
Three bank statements are not attached for the three months of the quarter.
Bank reconciliations have not been prepared and attached to the quarterly report for the three months of the quarter.
Bank reconciliations are done incorrectly.
Savings account statement has not been provided for the quarter.
Grant request letters and Commission minutes are not attached documenting grant expenditures, or other neighborhood enhancement activities conducted by the ANC.
Interest on savings and checking accounts is not properly reported on the quarterly report form.
Stop-payments, bank service charges, etc., are not reported on the quarterly report form or improperly recorded, noting the correct adjusting entries.
Monies disbursed for inappropriate expenses, i.e. legal fees, business cards, festivals, etc.
Commission minutes fail to document the approval of all expenses incurred by the ANC.
Checks are not noted in numerical sequence and are not properly recorded in the appropriate months during the quarter affected.

Source: District of Columbia Auditor
Federation of Citizens Associations of the District of Columbia