anc 5a audit report

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OFFICE OF THE DISTRICT OF COLUMBIA AUDITOR717 14TH STREET N.W., SUITE 900

WASHINGTON, D.C. 20005TEL:202-727-3600 FAX:202-724-8814

030: I I :LP:FS:cm

Letter Report: Audit of Advisory NeighborhoodCommission SA for Fiscal Years 2008 Through2011, as of March 31, 2011

September 30, 2011


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OFFICE OF THE DISTRICT OF COLUMBIA AUDITOR717 14TH STREET N.W., SUITE 900

WASHlNGTON, D.C. 20005TEL: 202-727-3600 FAX: 202-724-8814

030: 11 :LP:FS:cm

Commissioner Herman PrestonChairpersonAdvisory Neighborhood Commission 5A4613 12 th Street, NEWashington. D.C. 20017

Letter Report: Audit of Advisory Neighborhood Commission 5A forFiscal Years 2008 Through 2011. as of March 31. 2011

Dear Commissioner Preston:Pursuant to Sec tion 16 (d) of the Advisory Neighborhood Commissions

Act of 1975 IANC Act). 1 as amended. the District of Columbia Auditor (Auditor)conducted an audit of the financial accounts and operations of AdvisoryNeighborhood Commission (ANC or Commission) 5A.OBJECTIVES, SCOPE, AND METHODOLOGY

The objectives of the audit were to determine whether:1. ANC 5A's disbursements complied with the ANC Act, ANC Financial

Management Guidelines 2 issued by the Office of th e District ofColumbia Auditor. and legal opinions issued by the Office of theAttorney General (OAG); and

2. internal controls were adequate to produce reliable fmancialinformation and ensure that the ANC's assets were properlysafeguarded.

I See Sccti


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The audit covered fiscal years 2008 through 2011, as of March 31, 2011(October 1, 2007 through March 31, 2011). In conducting the audit, theAuditor reviewed all available canceled checks, bank statements, banksi gnature card s, quar terl y financial repor ts , meeting minutes, receipts andinvoices, grant applications, and other relevant documents.SUMMARY OF ANC SA'S DISBURSEMENTS DURING FISCAL YEARS 2008THROUGH 2011, AS OF MARCH 31, 2011

During the audit period, ANC 5A disbursed $71,730.24.summarizes, by category, ANC 5A's d isbur sements made duringperiod, including bank service charges.

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Table Ithe audit


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Table ISummary o f ANC 5A's Disbursements

During Fiscal Years 2008 Through 2011,as of March 31, 2 0 1 1

Net Salaries &Wa esWorkers Com ensationHealth Insurance

$0.00 $0.00 $0.00 $0.00- - " $ " , , o ~ . ' ' ' ' ' _ - - - - - " $ : : . : " " .2- $""0"-,.,,,00'+ ."0$,,,0'''''0'''-10$0.00 $0.00 $0.00 $0.00

$0.00$0.00$0.00

Total Federal Wage TaxesPaid

Pett: Cash Reimbursement= - = ~ = = - + _ - - - ' = c ~ + - _ - - ' - ~ _ ' _ t - - 2 . . : : .

$09.9:-+__---=$"'0....0"'0+_.........:$"'0"-'.""oQ ._._.__ ._",$",0,,-.O " ' O + _ - - - ' $ " " O ~ . 0",,0'_I ocLo"'cO:,a...l . ' - l n 7 " c o " ' l " " n - " e - ' T c " a x ~ e s " - ' . P " ' a " i d ' - - _ + __ $',0,00 $0.00 _ ~ 0 : . 9 . ( ).....__ $0.00- = = : : . . . : . : = ~ - - - - - - - _ ....Telephone Service $1,484,83 . . .~ L Z . L 9 , 1 3 $1,407,88 _ ~ 1 . , ! l . ? . Q . 5 1 $6,492.35Posta e a J 1 ( L [ ) e . ~ i ' . ' e . J : . Y .... + _ _ - - " $ " " O ~ . O ' - " 0 ' _ l $48,24 $17 ,69__ .__ .. . _ $0,00 $65.84Utilities $6,035, 1 4 .__ ~ 3 , 4 3 3 , 2 4 $5,222.43 __ ,3,367.85 $18,058.66Printin a n < i . . l ) - " l . , - , i c " , a " , t i " , o " n ~ _ + - - _ - " $ , , , O c . ' O , , - , O ._ $68,90 __ j;_Cl:QQ ..... $0.00 $68.90Flyer Distribution_. $50,0Q. .._.. $0.00 $0,0o___ $0.00 $50.00Purchase of Service $985..:63 $536.24 ~ J . . 5 0 , O ( ) _ $408.57 $2,080.44

1-"'0""ff"ico:'e:..:S"-u=",I"ieo:'s:..:&=E""x=e"n",s",es"--+_",$3",3,,,3,,,.~ ~ _ j > 1,304.26 $3 ,44.i3c95 $744.46 $5,83 1.62Office E ui!11ent Rental $5,637.08 $5,399.83 $ 6 , 3 4 3 , ~ _ $3,809.56 $21,190.08

!-"O"ff"'ic"'e:..:E=u"'i=m"'e"'n"tc..-'P:..:u"r..:cc"'h"'aO'se"-+__...JPO.OO $0.00 $0,00 $O.OO._ .. _ ~ . . : O O _Grants $0.00 $0.00 $l,OQ,o,OO $0.00 $1,000.00

f-T"r..."'in"'i"nJ.>.. +-__ j>().OO $0.00 $0.00 $0.00 $0.00$0,00 $0.00 $O,go $0.00 $0.00

I-T"r",a:.:n",s:.:,fe"r_t::::o-,S"a=.v..::in=s=AO'cc"o",u"n"t'-t $=O:.9..9. $0.00 $0.00 $0.00 $0.00Bank Service Char es $36,00 $37.00 __ . _ ~ 1 5 1 . 2 5 $78.00 $302.25

I_O=th"e"r +-_"'$""25"',-"0"-0. $4,986.25 $8,721.07 $2,076.28 $15,808.60LT.o.0:::.t::::a::.:l"D:.::i"sb"'u"r..::s"'e"'m"e:.:,n:.:,ts"-__ --',,$"'1:..:4:.::, " 5 8 " 7 ~ . , , , 6 , , , 3 . . . L $ = 1 7:.J.:.'2.:::5",",9'-L"$=:2"6,,,,::::6",2",7:..:9:..:.L_-",$",1=:2",",6::::5""2 " 3 : : . . : . L . . : : $ : . . : 7 ~ 1 , , , 3,,7:..:"".0.74

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FINDINGSANC SA COMPLIED WITH D.C. CODE, SECTIONMAINTAINING ADEQUATE DOCUMENTATIONDISBURSEMENTS

1-309.13 /j ) (11 BYTO SUPPORT

Section 1-309.13U) (1) of the D.C. Code states, in relevant part, tha t:Each quarterly [financial] repor t shall include copies ofcanceled checks , bank s ta tements , g rant requestletters and grant disbursements, invoices and receipts,executed contracts, details about al l contributionsreceived during th e time period covered by thequarterly report, and the minutes of all meetingsindicating the Commission's approval ofdisbursements during the time pe riod covered by thequarterly report, and certification of the Commission'sapproval of the quarterly report signed by theCommission's Secretary.

The Auditor found that ANC SA's Treasurer maintained adequatedocumentation to support $70.370.24, or 99%, of disbursements made duringthe audit period. The Auditor's examination of relevant documentationindicated that ANC SA officers established adequate procedures to ensure thatappropriate required financial documentation was obtained and maintained inthe ANC's files to support disbursements.ANC SA GRANT DISBURSEMENTS DIDNOT FULLY COMPLY WITH THE ANCACT

Section 1-309.13 (m) of the D. C. Code states that:A grant may not be awarded unless the grant is awarded pursuantto a vote of the Commission at a public meeting .... A Commissionmay approve grants only to organizations that are public in nature.... An applicant for a grant must submit an application in writingto the Commission .... Within 60 days following th e issuance of agrant, the grant recipient shall forward to the Commission astatement as to the use of the funds ... complete with rece ip tswhich support the expenditures.

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As presented in Table II, ANC 5A awarded five grants for $1,000 duringthe audit period. The grants however were not always supported by therequired grant application, statement of use or receipts. 3

Table IIAdvisory Neighborhood Commission SAGrants Issued During Fiscal Years 2008 through 2011,

As ofMarch 31, 2011

Soulec. ANC SA qUdlic!ly IllldllL:ldl1CPOI1S, checkbook, c,lllcckd checks, dnd b


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ANC SA FILED ALL REQUIRED QUARTERLY FINANCIAL REPORTS DUEDURING THE AUDIT PERIOD IN A TIMELY MANNER

Section 1-309.13 Ul (1) of the D.C. Code states, in relevant part, that:The treasurer of a Commission shall prepare aquarterly financial report on a form provided by theAuditor. The financ ia l report shall be presented tothe Commission for its consideration at aCommission meeting within 45 days after the end ofthe quarter. A copy of the approved financial report .. . shall be filed ... with the Auditor within 15 daysof approval. Each quarterly report shall includecopies of [supporting documents for the]disbursements dur ing the t ime per iod covered by thequarterly report.

ANC 5A filed 13 of the required 14 quarterly financial reports on before,or within 15 days of the due date. One report, however, was received 25 daysafter the due date.ANC SA HELD THE REQUIRED NUMBER OF PUBLIC MEETINGS DURINGTHE AUDIT PERIODD.C. Code, Section 1-309.11 (b) (1) states, in relevant part, that each

Commission shal l meet in a public session at regular intervals at least 9 timesper year. The Auditor 's review of ANC 5A's quarterly financial reports andother relevant documentation revealed that ANC 5A held a total of 35 publicmeetings during the 42-month audit per iod. Therefore , ANC 5A fully compliedwith the public meeting requirement under D.C. Code, Section 1-309.11 (b) (1).ANC SA DID NOT MAINTAIN MINUTES FOR ALL PUBLIC MEETINGS HELDANC 5A did not main ta in minut es for 4 of the 35 public mee tings held

dur ing the audit period. Maintaining minutes of public meetings ensures thata record is maintained to document, in addit ion to the certification of officers,the votes on al l expenditures and r eimbursements brought before theCommission for approval. The minutes also documen t importan t issuespresented by 5A constituents, to the Commission, and any presentation andapproval of expendi tures, grant requests, treasurer's reports, and quarterlyfinancial reports.

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RECOMMENDATIONANC 5A's officers mainta in minutes for all public meetings to documentvotes on al l expenditures and r eimbursements brought before theCommission for approval as well as the presentation and approval ofexpenditures, grant requests, treasurer 's reports, and quarterly financialreports.

ANC SA ESTABLISHED ANNUAL FISCAL YEAR SPENDING PLAN BUDGETS

D.C. Code, Section 1-309.10 (n) states that:Each Commission shall develop an annual fiscal yearspending plan budget for the upcoming fiscal yearwithin 60 days of notification of the amount of theCommission's annual allotment. Prior to adoption ofthe budget at a public meeting, the Commission shal lpresent the budget at a public meeting of theCommission to elicit comments from the residents ofthe Commiss ion area.

The Auditor 's review of ANC 5A's records revealed that annual fiscal yearspending plan budgets were developed and approved within 60 days ofnotification of the amount of the commission's annual allotment.ANC SA PARTICIPATED IN THE ANC SECURITY FUND

D.C. Code, Section 1-309.13 (c) states, in relevant part, the following:Treasurer and Chairperson shall file with the Auditorand maintain in force dur ing their occupancy of theirrespective offices, a cash or surety bond in an amoun tand on a form satisfactory to the Auditor.Participation by a Commission in the AdvisoryNeighborhood Commission Security Fund . . . shallsatisfy the requirement of a cash or surety bond .No expenditure shal l be made by a Commission atany time when a cur rent and accurate statement anda bond or i ts equiva lent are not on file with theAuditor.

ANC 5A participated in the ANC Security Fund in calendar years 2008 ,2009,2010, and 2011.

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INTERNAL CONTROLS WERE ADEQUATE TO PRODUCE RELIABLEFINANCIAL INFORMATION AND ENSURE THAT ASSETS WERE PROPERLYSAFEGUARDED

The Audito r found that ANC SA's internal controls were adequate asevidenced by, but not limited to , th e following:

Annual spending plan budgets were presented and properly adopted atpublic meetings;

All expenditures were first approved by a majority of Commissioners in apublic meeting and recorded in the minutes ;

99% disbursements were supported by adequate documentation; and ANC SA participated in the ANC Security Fund.

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CONCLUSIONThe Auditor 's examination of ANC 5A's financial accounts, books, and

records revealed that ANC 5A did not consistently comply with al l relevantprovisions of the Advisory Neighborhood Commissions Act of 1975, asamended, Financial Management Guidelines issued by the Office of the Districtof Columbia Auditor, and legal opinions issued by the Office of the AttorneyGeneral.

During fiscal years 2007 through 2009, as of March 31, 2009, ANC 5Amaintained the required documentation to justify and support 99% ofdisbursements. Additionally, ANC 5A complied fully with t he public meetingrequirement of the ANC Act and minutes of meetings were prepared andmaintained in the ANC's fi les for the majority of the public meetings held by thecommISSIOn.

Overall, the Auditor found that ANC 5A maintained an organized recordkeeping system and adequate internal controls were in place to producereliable financial information and substantially ensure t ha t the assets of ANC5A were properly safeguarded. .

Pursuant to D.C. Code, Section 1-309.13 (d) (3), ANC 5A must respond inwriting to each of the deficiencies detailed herein within 90 days.

ANC 5A Grant Disbursements Did not Fully Comply With The ANC Act ANC 5A Did Not Maintain Minutes For All Public Meetings Held.Failure to do so will result in the forfeiture of ANC 5A's next scheduled

quarterly allotment until a response is filed.Sincerely,

Yolanda BrancheActing District of Columbia Auditor

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