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NC Checking Account Training 6-24-13


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NC Checking Account Training 6-24-13

  1. 1. Training and Orientation
  2. 2. Treasurers and Signers Setting up NC CheckingAccount Cash Request Form Funding Request Form Board Vote on FundingRequest Online Bill Pay Debit Card Monthly Expenditure Report Neighborhood PurposesGrants Neighborhood ImprovementProjects InventoryGeneral Overview Purpose Introduction Funding Flow Responsibilities Annual Budget Funding Requests Board Approval Conflict of Interest AllowableExpenditures ProhibitedExpenditures2
  3. 3. The purpose of the Citywide System ofNeighborhood Councils is to “promote morecitizen participation in government and makegovernment more responsive to local needs.”3
  4. 4.  95 Neighborhood Councils Small Department Demand Warrant processing unsustainable Checking Account System allows the NC to takecharge of issuing payments to vendors Setting up for the possibility of NC’s to receive grantsand donations in the future Funding staff re-focused on auditing and compliance Neighborhood Councils are allocated $37,000 for thisfiscal year. These are public funds More flexibility, so to safeguard the process, trainingfor all Board Members is required. (by Sept.1)4
  5. 5. DepartmentNC AccountFundingRequestsBoardApprovalAuthorizationCardholderVendorCardholderReportsBoardApproval5
  6. 6.  Treasurer and Signer share theresponsibilities of administering the checkingaccount Internal checks and balances ensure fundsare spent appropriately Two key roles in the new funding processinclude preparing reports and forms, andissuing payments to vendors It is up to the participating NC BoardMembers to determine their role.6
  7. 7.  Forms and Reports Preparer Monthly Cash Request form Funding Request Form Monthly Expenditure report Supplemental Cash Request form Presents all forms and reports to the Board Authorizes the cardholder to pay vendors7
  8. 8.  Issue online check payments to vendors Assume sole custody of charge card Expend funds from charge card Collect and safeguard all original invoices,receipts and payment documentation Submit timely all original invoices, receiptsand payment documentation to the Treasurerfor the monthly reconciliation process8
  9. 9.  Each Neighborhood Council Board (inclusive all Board Membersthat vote on funding matters) is charged with the responsibilityof ensuring that the checking account activity of their respectiveBoard complies with the established policies and proceduresprescribed by the Department. Each Board Member voting on funding items must attend an NCChecking Account Overview training and understand the fundingprocess. If you have not taken the training by Sept. 1, you will beineligible to vote on any funding items (this would not, however,affect quorum for meetings). Each Board Member must also understand the Conflict of Interestlaws covered in the Ethics Training, and must check with theDepartment or Office of the City Attorney prior to engaging indiscussion or voting on any matters that may pose a potentialconflict of interest.9
  10. 10.  The budget should be used as a strategic financial guide to conductactivities that will help the NC achieve its goals. A good budget outlines in reasonable detail: 1) operating expenses; 2)outreach activities; 3) neighborhood improvement projects; 4)Neighborhood Purposes Grants; and 5) election related expenses. The NC budget must be provided in the standardized format using thetemplate provided by the Department With the following categories:100 Operations, 200 Outreach, 300 Community Improvement Projects,400 Neighborhood Purpose Grants, 500 Elections. Neighborhood Councils are required to submit a board approved budgeteach fiscal year. The budget must be submitted to the Department bythe Treasurer, together with a Board Resolution signed by the Treasurerand Signer or Agenda and Minutes showing board action and currentBoard Roster. This is the first year a Strategic Plan is also being requested. Go for more details.10
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  12. 12.  All funding requests must be approved by the entire Board andidentifiable under one of the approved budget categories. All requests to the Board for funding must be made on astandardized form. Recurring/monthly operational expenses may be approved onlyonce, indicating the amount and timeframe. Outreach, Neighborhood Improvement Projects, NeighborhoodPurpose Grants, and Election expenses should be approved perrequest. Prior to issuing payment for a Board Approved expenditure, thefollowing must be submitted to the Department for review andan authorization code: NPG’s, NIP’s, Contracts, Leases, NC-sponsored or co-sponsored events, and any expenditures over$2,500.00 (cannot split payments to circumvent the $ threshold) Only special accounts set up by Council Action will continue tobe paid via Demand Warrants.12
  13. 13.  The Department will prescribe a formtracking the Board voting results for eachfunding item (yes, no, abstain, absent,recuse, ineligible). The Forms and Reports Preparer isresponsible for submitting this completedform to the Department with the monthlyexpenditure report. This will take the place of any minutes orresolutions required for a particular fundingrequest.13
  14. 14.  Political Reform Act states that no public officialshall make, participate in making or in any wayuse his or her official position to influence agovernmental decision in which the official has amaterial financial interest. If an official has a conflict of interests, the officialwill be disqualified from acting on the matter. You must recuse yourself entirely from thefunding decision, including any discussionleading up to a vote. When in doubt . . . contact the Department orCity Attorney’s office.14
  15. 15.  All purchases of equipment, supplies, andservices must be for the sole purpose of buildingthe social capital of the Neighborhood Council tobenefit the community. Social Capital in this circumstance is the extentof NC’s social relations with their communityinsofar as they have productive benefits whichforward their mission to promote more citizenparticipation in government and makegovernment more responsive to local needs Examples of allowable expenditures include thefollowing:15
  16. 16. *Please note that all services indicated below areservices that must be provided TO the NC infurtherance of their goals. Business Services - Automobile parking lots andgarages, equipment, furniture rental, photographicdeveloping, studios, postal services, reproductionand blueprint services, tool rental Communication Services – Telecommunicationequipment and services Professional Services - Associations, civic, social andfraternal, elementary schools, and secondarycolleges, professional schools, charitable and socialservice organizations.16
  17. 17.  Repair Services – Electronic repair shops, furniture repair,refinishing, small appliance repair shops. Retail Services - Books, Periodicals, Newspapers, BuildingMaterials, Lumber Stores, Candy, Nut, ConfectioneryStores, Caterers, Computers, Computer Peripheral,Equipment, Computer Software, Computer Software Stores,Department Stores, Discount Stores, Drug Stores,Pharmacies, Eating Places, Restaurants, Electronics Stores,Fast Food, Restaurants, Florist Supplies, Nursery, Flowers,Glass, Paint, Wallpaper Stores, Grocery Stores,Supermarkets, Hardware Stores, Home Supply Warehouse,Lawn and Garden Supply Stores, Music Stores, Office andCommercial Furniture, Office, Photographic andPhotocopy, Paints, Varnishes and Supplies, PromotionalMaterial Stores, Second Hand Stores, Stationery, OfficeSupplies, Printing, Variety Stores, Wholesale Clubs17
  18. 18.  Any purchases made without the prior approvalof the Neighborhood Council governing body,and any purchases that are not identified in theNC approved budget. Payment for services over an extended periodof time that may require a personal servicesagreement executed by the Department. Pre-payment, or advanced payments of goods orservices. Please check with the Department firstprior to issuing pre-payments or advancedpayments. Payment for transportation services or travelexpenses.18
  19. 19.  Split charges - using multiple transactions for asingle charge to circumvent the maximumthreshold amount allowed ($2,500). Donations of money or goods to individuals orgroups. Items or services from an entity that did notparticipate in a fair and open selection process.The threshold amount is anything over $5,000requires 3 bids from local vendors, and may needa contract depending on the terms of services. Any purchases and/or capital improvementprojects that increase the value of privateproperty or do not benefit the general public.19
  20. 20.  Events or projects that do not have the requiredinsurance and permits. Liability is always animportant consideration with any project. Third-party reimbursements are not permissible.Neighborhood Council funds can only be used toreimburse Board Members of their ownNeighborhood Council for Board approvedexpenses. Purchases of alcohol, tobacco, firearms, or adultentertainment products. Purchases that violate the constitutionalseparation of church and state (City funds cannotbe used to endorse religion and/or interfere withfree religious exercise)20
  21. 21.  Purchases that violate City and/or Stateconflict of interest laws. Supporting or opposing ballot measures orcandidates, and political forums or debatesunless following City Attorney guidelines. Lawsuits against the City or City agencies,and appeals against any discretionarydecisions made by any City agency. When in doubt – Please ask!21
  22. 22.  Department may stop payment on a checkand charge the fees to the NC’s appropriationaccount. Require the NC to obtain a refund of themoney and return any goods purchased. If unable to retrieve the funds, reduce theNC’s appropriation by the amount identifiedas improper. Other enforcement actions as deemedappropriate based on severity of the incident.22
  23. 23.  Website link for completion Brief Q & A23
  24. 24.  Submit a Board Resolution indicating theselection/election of the Treasurer and Signer Checking Account and Funding Training Bank Application Signed Acknowledgement with theDepartment Once signed up, the Department will notifythe cardholder when the card has beenreceived. Monthly statements available online.24
  25. 25.  Initial seed money in July = $4,000.00 The NC’s Forms and Reports Preparer will requestadditional funds from their City appropriationaccount using the Cash Request Form Request must be based on the approved budget Department receives the form and, if complete,will process in 1-2 business days Preparer may submit additional cash requests forthe month based on unforeseen expenditures25
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  27. 27.  Any party requesting funds from the NC mustcomplete a Funding Request Form. Prior to issuing payment for a BoardApproved expenditure, the following must besubmitted to the Department for review andan authorization code: NPG’s, NIP’s,Contracts, Leases, NC-sponsored or co-sponsored events, and any expenditures over$2,500.0027
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  30. 30.  No physical checkbooks for NC’s Checks are generated on Wells Fargo Accountwebsite. 5-7 days delivery to vendors (includes mailing) EFT available for many vendors already in thebank’s database Checks cannot be made to “cash” Signers can also arrange for the check to bemailed to their address for hand-delivery tovendors Online tutorials for use of bill pay available atwellsfargo.com30
  31. 31.  The cardholder of the NC Checking Account charge card isresponsible for its security Charge card usage should be limited to incidental useonly, where an online check payment would not be feasible To avoid possible fees for paying with a charge card,always ask the vendor for any available payment options. Maximum daily amount for incidentals is $500.00 Any requests for increases above the daily amount mustbe authorized by the Department Request is submitted on a form prescribed by theDepartment Cardholder is responsible for collecting and submitting alloriginal receipts to the Treasurer for the monthlyreconciliation31
  32. 32. The following uses of the charge card are strictlyforbidden under any circumstances: ATM cash withdrawals Cash-back requests Donations of money to individuals or groups Purchases of gift cards, alcohol, tobacco,firearms, or adult entertainment products. Use of the charge card at any gambling facility,casino, or for any gambling purposes be it onlineor in person.The Department will immediately revoke thecardholder’s charge card if any of the above usesare identified.32
  33. 33.  Due . . . Monthly Deadline is 10 business days after the NC’sregular monthly board meeting. Eg. July’s Expenditure report is due 10 daysafter the NC’s August meeting. Must be signed and certified by both theTreasurer and Signer. Include all relevant documentation for listedexpenditures (receipts, invoices, flyers,funding request forms, board vote forms33
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  36. 36.  Allows Neighborhood Councils to issue grants to501(C)(3) nonprofits and public schools from theirannual NC allocation of funds. Over $5,000 requires a City Contract. Over $20,000 requires a City Contract and approval ofthe Board of Neighborhood Commissioners (BONC). NCs must evaluate and approve grant requests in publicmeetings, and make a finding of public benefit(Community Benefit Statement) NC must be in good fiscal standing: must have currentfiscal budget on file with the Department. Conflict of Interest Laws Apply: Any Board Member whohas a relationship with the requesting School orOrganization must consult the Office of The CityAttorney before the item is heard and voted by theBoard.36
  37. 37.  All NPG’s must be submitted to the Department forreview and approval PRIOR to issuing a check fromthe NC Checking Account.The following must be submitted: NPG Application - completely filled out by Applicant with2-Signatures and contact information W-9 Form - completely filled out and signed by Applicant Funding Request Form Board Vote on the Funding Request If 501(c)3 Non-Profit◦ IRS Determination Letter If Public School◦ Official Letter from School on School Letterhead requesting thegrant37
  38. 38.  All Neighborhood Improvement Projects mustbe submitted to the Department for reviewand approval PRIOR to issuing a check fromthe NC Checking Account. Submit copies of invoices, reports, surveys,proofs of insurance and/or permits obtained.38
  39. 39. Neighborhood Councils using City funds to purchase items that qualify asinventory under the City’s inventory policy must track those items.Inventory as defined per City policy is: Any item with an acquisition or assigned value of at least $1,000.00 and anestimated useful life of at least three years. Any computer hardware, including desktop or laptop computer(s),regardless of cost. Any digital cameras, regardless of cost. Any electric or electronic office and communications equipment, such asprinters and copying machines, regardless of cost. Each NC shall maintain a list of its inventory and affix an inventory tag witha unique number (e.g. WANC10-001) for any item that falls under the City’sinventory policy as stated above. Each NC shall also submit its inventory list to the Department along with itsyear-end reconciliation report or as prescribed by the Department.39
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  41. 41.  Link to completion Q & A For further questions, please contactDepartment of Neighborhood Empowerment200 N. Spring Street, Suite 2005Los Angeles, CA 90012Downtown Office: (213) 978-1551Downtown Fax: (213) 978-1751NCSupport@lacity.orgDone.Funding@lacity.org41