5251694 Office of the District of Columbia Auditor, Advisory Neighborhood Commission Security Fund Annual Financial Report for Fiscal Year 2014

OFFICE OF THE DISTRICT OF COLUMBIA AUDITOR

 

 

 

Advisory Neighborhood Commission Security Fund

Annual Financial Report for Fiscal Year 2014

 

 

 

 

 

 

December 12, 2014

 

 

 

Audit Team:

Hussein Aden, Senior Financial Auditor

 

 

 

A Report by the Office of the District of Columbia Auditor Lawrence Perry, Acting District of Columbia Auditor

Purpose

 

As required by law1, the Office of the District of Columbia Auditor presents the Advisory Neighborhood Commission  (ANC) Security Fund Annual Financial Report for Fiscal Year 2014.

 

 

Historical Background of the Fund

 

The Advisory Neighborhood Commission  Security Fund  (Fund) was established for the purpose of insuring Advisory Neighborhood Commissions against unauthorized expenditures or loss of funds2• The Fund does not cover any loss as the result of an expenditure authorized by a vote of a Commission. The Fund is held in the custody of a Board of Trustees (Trustees) composed of the Secretary of the District of Columbia, the General Counsel to the Council of the District of Columbia, and the District of Columbia Auditor.

 

 

 

A Commission is eligible to participate in the Fund if the Treasurer and the Chairperson of the Commission agree, on a form provided by the Trustees, to be personally liable to the Fund for any sum paid out by the Fund as a result of the Treasurer or Chairperson's wrongful misappropriation or loss of Commission monies. An ANC becomes a participant of the Fund and is eligible to recover losses upon payment to the Fund of an annual contribution at the beginning of the fiscal year in an amount to be determined by the Trustees.

 

 

 

D.C. law requires the assets of the Fund to be held in an interest bearing account located in the District of Columbia3. In addition, the law requires that the Fund publish an annual report in the District of Columbia register no later than 90 days after the end of each fiscal year4.

 

 

 

ANC 5B lost approximately $30,000 due to unauthorized expenditures made by their elected Chairman between August 2010 and April 2011. To recover the losses associated with the unauthorized expenditures, ANC 5B, a participant of the  ANC  Security  Fund  at  the  time,  requested  a  reimbursement   totaling

$15,467.67 from the ANC Security Fund Board of Trustees. On December 7, 2011, the Board approved the request and authorized the transfer of $15,467.67 from the Fund the ANC 5B (see Attachment I).

 

 

 

 

 

 

' D.C. Code § 1-309.14(f) (2012).

2 D.C. Code § 1-309.14(a) (2012).

3 D.C. Code § 1-309.14(e) (2012).

4 D.C. Code § 1-309.14(f) (2012).

 

Advisory Neighborhood Commission Security Fund Annual Financial Report for Fiscal Year 2014 Office of the District of Columbia Auditor

November 21, 2014

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In a related action, the former Chairman of ANC 5B has been ordered by the court to make payments to the Security Fund, to reimburse it for the $15,467.67 distributed to ANC 5B. These payments are ongoing and totaled $2,055.74 in FY 14 and $3,000 in FY 15.

 

 

 

Advisory Neighborhood Commission Security Fund Commercial Savings Account Fund Activities & Balance Fiscal Year 2014

 

 

Beginning Balance	FY 2014     $58,509.59	FY 2013     $69,957.29
Deposits	3,040.74	4,000.00
Interest	35.97	62.97
Withdrawal/ Adjustment	0.00	-15,510.675
Total Fund Balance

 

 

 

 

On October 1, 2013, the beginning balance of the Advisory Neighborhood Commission Security Fund was $58,509.59. Deposits of $31076.716 and no disbursements during FY 2014 resulted in a Fund balance of $61,586.30, as of September 30, 2014.

 

The Fund is insured by federal depository insurance up to $250,000. To document the Fund's activity, at the end of each quarter and after receiving the quarterly bank statement, the Auditor reconciles and records all Fund activity and balances into the District of Columbia Financial System. Additionally, a quarterly and annual reconciliation/closing report of the Fund's activity and balance is submitted to the District of Columbia's Chief Financial Officer (see Attachment II).

 

 

To view attachments to this report, please visit:

 

http://dcauditor.org/sites/default/files/DCA092015.pdf

5 This amount includes the $15,467.67 authorized by the ANC Security Fund Board of Trustees for transfer to ANC 5B to reimburse the ANC for money misappropriated by the former Chairman. Although the transfer was authorized in December 2011, the money was not actually transferred until February 2013.

6 The $3,076.71includes: $g85 ANC annual security fund participation fee ($25 per ANC), $35-97 earned interest, and $2,055.74 court mandated settlement payments to the Fund.

 

Advisory Neighborhood Commission Security Fund Annual Financial Report for Fiscal Year 2014 Office of the District of Columbia Auditor

November 21, 2014

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