Advisory Neighborhood Commissions Financial Management Orientation Session. Treasurers and Chairpersons February 21, 2015

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1 Advisory Neighborhood Commissions Financial Management Orientation Session Treasurers and Chairpersons February 21, 2015

2 Introductions Kathy Patterson, D.C. Auditor Lawrence Perry, Deputy Auditor Fredericka Shaw, ANC Analyst Anovia Daniels, ANC Outreach 2

3 New This Year Web-Based Quarterly Report Assistant (QRA) 3

4 Advisory Neighborhood Commissions (ANC) Overview The Advisory Neighborhood Commissions Act of 1975 created ANCs to represent residents within Commission areas established in each of the eight Wards of D.C. There are currently 40 ANCs comprised of 296 Single Member Districts (SMD). Each SMD has a population of approximately 2,000 residents and is represented by an elected ANC Commissioner. ANCs are empowered to advise the District government on matters of public policy in the Commission area. 4

5 Responsibilities of the Office of the District of Columbia Auditor Review and approve required ANC quarterly reports of financial activity. Maintain a database of financial information on each ANC for historical and expenditure trend analysis. Provide guidance to ANCs to promote financial accountability. Produce and submit, to the Council of the District of Columbia, a consolidated annual report of the financial activity of all ANCs. Perform administrative oversight relative to the Advisory Neighborhood Commission Security Fund. 5

6 Roles and Responsibilities of the: Office of the Attorney General (OAG) Office of Advisory Neighborhood Commissions (OANC) OAG Provide written advice addressing common ANC concerns and frequently asked questions. Review issues requiring legal clarification of the applicability of the Advisory Neighborhood Commissions Act of OANC Provide administrative support to ANCs in achieving their mission of advising the District government on matters of public policy. For more information, visit OAG.dc.gov or ANC.dc.gov. 6

7 Role of ANC Officers Chairperson Vice Chairperson Secretary Treasurer Serve as convener of the Commission and chairs the Commission meetings. Fulfill the obligations of the Chairperson in the Chairperson s absence. Ensures that appropriate minutes of Commission meetings are kept and appropriate meeting notice is provided. Perform financial duties provided for in D.C. Code Section Officers are elected from among the ANC Commissioners at a public meeting of the Commission in January of each year. 7

8 Funds Maintained by Advisory Neighborhood Commissions Annual Funding: ANCs receive annual funding through quarterly allotments disbursed by the Office of Finance and Resource Management (OFRM) upon the recommendation of the Auditor. The annual appropriations to individual ANCs for Fiscal Year 2015 range from $3, to $26,833.80, based on population ratios. Quarter FY 2015 Allotment Schedule Related Quarterly Report 1 st 3 rd Quarter (April-June 2014) - FY nd 4 th Quarter (July-Sept 2014) - FY rd 1 st Quarter (Oct-Dec 2014) - FY th 2 nd Quarter (Jan-March 2015) - FY 2015 ANC Funds: Must be maintained by each ANC in a commercial bank, savings and loan association, credit union, or any combination of entities, all of which are insured by the government of the United States and located within the District. 8

9 Allowable ANC Expenditures Includes the use of funds for public purposes and benefit within the Commission area and for the functioning of the Commission office. Allowable ANC expenditures should fall into one of the expense categories established by the Auditor. Net Salary & Wages Insurance Federal Wage Taxes Paid State Wage Taxes Paid Unemployment Insurance Tax Penalties Paid Local Transportation Office Rent Telecommunication Services Postage and Delivery Utilities Printing and Copying Flyer Distribution Purchase of Service Office Supplies Office Equipment Website Grants Training Petty Cash Reimbursement Other Bank Charges 9

10 Disbursing ANC Funds ANC Funds Are not to be made without the approval of the Commission. Can only be made by check or through a petty cash fund disbursement. Can be used for reimbursement for an authorized purchase, to a Commissioner that is documented with a receipt and a copy submitted to the Commission, for approval. Disbursement of ANC Funds by Check Must be recorded by the Treasurer of the Commission in the Commission s books of accounts and signed by two Commissioners, one of whom shall be the Treasurer or Chairperson or through a petty cash fund. Petty Cash Fund May be established by each ANC not to exceed $200 at any one time and maintained in accordance with procedures established by the District of Columbia Chief Financial Officer. 10

11 ANC Security Fund The ANC Security Fund secures the ANC against misappropriation and negligent losses of funds by the Chairperson and Treasurer of the ANC for unpaid operating expenses that do not exceed the amount of the loss or do not exceed 50 percent of the ANC s annual allocation, whichever is less. Each ANC may participate in the Fund each calendar year by completing the necessary forms and paying the required fee. The Fund is held in the custody of the Security Fund Board of Trustees. ANCs cannot participate in the Fund unless the Treasurer and Chairperson agree to be personally liable for any sums paid out by the Fund as a result of their wrongful misappropriation or loss of ANC funds. The Fund shall not be liable for any loss as the result of an expenditure authorized by vote of a Commission. Treasurer and Chairperson must obtain a cash or surety bond if the ANC does not participate in the ANC Security Fund. 11

12 Key Financial Guidelines Effective Internal Controls All expenditures by the ANC must first be approved by a majority of the Commissioners in a public meeting of the ANC. Voided or spoiled checks should be mutilated on their face to preclude their subsequent use. All ANC checks must be signed by at least two officers of the ANC. The signing or counter signing of blank checks is prohibited. Writing checks to "Cash" or "Bearer" is prohibited. The Treasurer should reconcile the bank statement to the checkbook within 15 days of receipt of the bank statement. Duties related to financial accounting and reporting should be properly separated and be assigned to different Commissioners. ANC officers who receive reimbursement of expenses should refrain from signing checks made payable to them. Written guidelines for petty cash should be established. 12

13 Financial Accounting and Reporting Requirements Quarterly Financial Report Must be prepared each quarter and presented to the Commission for consideration and approval. ANCs are required to submit their quarterly report through the new web-based QRA system and also submit a signed copy of the financial report that has been approved by the ANC. 13

14 Treasurer s Report Treasurers should present to commission every month at a public meeting. Recommend also putting on ANC website. 14

15 Financial Accounting and Reporting Requirements Supporting Documentation Must be submitted with the quarterly financial report, through the web-based QRA, for all ANC expenditures made during the quarter. The quarterly report must include: copies of canceled checks; bank statements; grant applications and statement of use; invoices; executed contracts; receipts; contributions received during the quarter; and minutes of all meetings held during the quarter. 15

16 Submitting Financial Reports All signed financial reports and/or inquires should be sent to the Auditor s ANC address (ANCOperations@dc.gov), hand delivered or sent to the Office of the D.C. Auditor (Attention: ANC Operations). Phone inquiries should be directed to our ANC Outreach Operations at Submission Schedule for ANC Quarterly Financial Reports Quarter Due Date 1 st (Oct-Dec 2014) 3/2/15 2 nd (Jan-March 2015) 5/29/15 3 rd (April-June 2015) 8/28/15 4 th (July-Sept 2015) 11/30/15 16

17 ANC Quarterly Report/Allotment Statistics Allotment: 1 st Quarter 2015 ǀ Report Due Date: August 29, 2014 Related Quarterly Report: 3 rd Quarter 2014 (April-June 2014) Rpts Received 34 85% All Info Received 9 25% Missing Info 25 67% Rpts Not Received (as of 11/14/14) 6 15% Rpts Received After 11/14/14 2 5% Allotments Recommended to be Released 24 60% Allotment: 2 nd Quarter 2015 ǀ Report Due Date: November 28, 2014 Related Quarterly Report: 4 th Quarter 2014 (July-September) Rpts Received (as of 12/31/14) 34 85% Rpts Late (30+ days) 4 10% All Info Received 9 26% Missing Info 22 67% Rpts Not Received (as of 2/10/15) 2 5% Rpts Received After 2/10/ % 17

18 Consequences of Late Filing or Failure to File Financial Reports May delay the release of an ANCs allotment and may result in the forfeiture of the related allotment. May result in relinquishment of an ANCs checkbook and all blank checks to the Auditor. Failure to file three consecutive quarterly reports will result in the possible freeze on accounts held by the non-compliant ANC. 18

19 The Auditor s Role After Receiving Quarterly Report Review report for compliance with ANC Act. Notify ANC of any discrepancies or missing documentation and requests explanation or the missing documents. Recommend the deduction of amounts for expenditures that lack documentation. Recommend the restoration of these funds if missing documentation is provided before end of the fiscal year. After Auditor approval, send memorandum to the District's Office of Finance and Resource Management and ANCs Treasurer and Chairperson recommending the release of the allotment. 19

20 Common Issues/Discrepancies with Quarterly Reports Insufficient or improper supporting documentation. Not having cell phone guidelines. Not following grant guidelines. Improper refreshments. 20

21 Supporting Documentation Examples 21

22 Supporting Documentation Examples 22

23 Cell Phone Guidelines 1. ANCs approve at a public meeting a policy for cellular phone issuance and use. 2. The ANC s cell phone policy should include (at a minimum) the following provisions that Commissioners: o Reimburse ANC all cell phone use charges that exceed allowance in the approved plans. o Reimburse ANC for value of lost and/or damaged cell phones. o Return the cell phones when the Commissioner s term expires. o Purchase from ANC the cell phone/equipment not returned when Commissioner s term expires. o Review the cell phone policy and acknowledge in writing. 3. The ANC s policy should include guidelines to promote safe/cost-effective cell phone use. 4. Cellular telephones should only be issued to ANC Commissioners of record. 5. Cellular telephones should be purchased from one or more of the District s approved vendors. 6. The ANC Treasurer should audit and collect reimbursement for over-plan use and loss of issued cell phones. 7. The ANC Treasurer is responsible for ensuring that all bill payments; reimbursement and complete copies of bills are submitted with the Quarterly Report. 8. The Chair and Treasurer should annually review the use of ANC cell phones for the purposes of identifying limited or inactivity. 23

24 Electronic Equipment Guidelines 1. ANCs approve at a public meeting a policy for electronic device issuance and use. 2. The ANC s electronic device policy should include (at a minimum) the following provisions that Commissioners: o o o o Reimburse the ANC Commission for the value of lost and/or damaged electronic devices. Immediately return the electronic device when the Commissioner s term expires. Purchase from the ANC the electronic device and any related equipment not returned when the Commissioner s term expires. Review electronic device policy and acknowledge in writing 3. The ANC s policy should include guidelines to promote safe and cost-effective electronic device use. o Be aware of the monthly limit in the approved rate (data) plan and keep track of your use. o Handle property with care. o Report lost stolen or broken electronic devices. 4. Electronic device should only be issued to ANC Commissioners of record. 5. To encourage cost savings, electronic devices should be purchased from one or more of the District s approved electronic device vendors. 6. The ANC Treasurer is responsible for ensuring that all electronic device bill payments are submitted with the Quarterly Report. 7. The Chair and Treasurer should annually review the use of ANC electronic devices for the purposes of identifying limited or inactivity. 24

25 Statutory Guidelines for Grant Awards D.C. Code. Section (l) (1) authorizes ANCs to award grants to organizations for public purposes. A Commission must adopt guidelines that a proposed grantee must follow for the consideration and award of grants. A grant request may be received from an organization proposing to provide public services and benefit persons who reside or work in Commission area. Expenditures for grant awards must be supported by documentation. Grant disbursements must be included in quarterly financial reports submitted to ODCA. Grant Guidelines The Commission should determine that grant funds were used specifically for the purpose approved by the Commissioners within 60 days after grant is disbursed. 25

26 Grant Request Form ANCs must fill out this form to request explanation or approval for a grant. The process may take up to 30 days and may require a legal opinion from the Office of the Attorney General (OAG). 26

27 Nominal Refreshments Nominal refreshments are an allowed expense for an ANC s monthly public meetings. The Office of the Attorney General defines "nominal refreshments" to mean light food and drink that is inexpensive - something short of a meal. Examples are below. Allowed Cookies Cake Doughnuts Pretzels Chips Crackers Small fruit tray (inexpensive) Small cheese tray (inexpensive) Soda Coffee Tea Juice Not Allowed Chicken Lunchmeat Deli Trays Kabobs Empanadas Quesadillas Pizza Restaurant Food Imported cheese Shrimp Salad Chicken Salad 27

28 Quarterly Report Assistant (QRA) System Requirements for utilizing QRA Computer and processor 500Mhz Memory (RAM) 1GB Hard Drive 3GB available disk space Display 1024X576 Web browser: Internet Explorer, Firefox, Chrome, Safari If you have any questions regarding your system requirements or need technical assistance, contact our IT Manager at QRA User s Manual The manual will walk you through step-by-step on how to complete your quarterly report and print out copies for signature. 28

29 Training on the QRA Training is provided biennially at the Auditor s mandated training sessions. If you have any questions regarding the QRA, please contact ANC Operations at ANCOperations@dc.gov or

30 Pre-Submission Checklist 30

31 Key Offices of the District of Columbia Government Involved in ANC Financial Matters Office of the District of Columbia Auditor Kathleen Patterson, District of Columbia Auditor Contact: Anovia Daniels, ANC Outreach Operations Phone: Fax: Website: dcauditor.org Office of Finance and Resource Management Mohamed A. Mohamed, Associate Chief Financial Officer Contact: Manager Phone: Fax: Curtis J. Lewis, II, Financial Website: cfo.dc.gov Office of Advisory Neighborhood Commissions Gottlieb Simon, Executive Director Phone: Website: anc.dc.gov Office of the Attorney General Karl A. Racine, Attorney General Contact: Joshua Turner, Assistant Attorney General Legal Counsel Division Phone: Fax: Website: oag.dc.gov 31

32 Questions? 32

33 Survey 33

34 Advisory Neighborhood Commissions Financial Management Orientation Session Treasurers and Chairpersons February 21,