DC AUDITOR: ANC 7A Treasurer Wrote Over $12k Worth Of Checks For Cash
I've said it once and I will say it again. Some of these Advisory Neighborhood Commissions are out of control and there needs to be swift and aggressive accountability about where the money is going. Thousands of dollars of tax payer money keeps disappearing (either through theft or mismanagement) and it doesn't seem like anyone is doing anything about it. What the heck is going on?
Click HERE to read the June 10, 2009 Audit Letter of ANC 7A for Fiscal Years 2005 through 2008, as of March 31, 2008.
A FEW HIGHLIGHTS OF THE AUDIT:
ANC 7A'S Checking, Savings and Petty Cash Account as of March 31, 2008
Petty Cash Account: 0
Checking Account: $55,236.96
Savings Account: $41, 117.30
Actual Cash Balance: $96,554.26
"The Auditor found that ANC 7A's Treasurer maintained adequate documentation to support only $8,973.71, or 29.44% of the $30,447.75 in disbursements made during the audit period. Since ANC 7A's Treasurer failed to submit quarterly financial reports for the 4th quarter of fiscal year 2007 and the 1st and 2nd quarters of fiscal year 2008, the Auditor has no evidence that invoices, receipts, and employee time sheets were maintained by ANC 7A's Treasurer to substantiate $21,504.04 in unsupported disbursements.
"ANC 7A's Treasurer filed the majority of quarterly financial reports late during the audit period resulting in the forfeiture of $16,463.40 in allotments."
"ANC 7A's Chairperson and Treasurer failed to follow petty cash procedures....The Auditor found that ANC 7A's Chairperson and Treasurer issued four checks totaling $837.24 made payable to "cash" in violation of D.C. Code Section 1-309.13 (f)....no receipts were provided to support the replenishment".
"It appears that the fund was also established without prior Commission approval. The Auditor's review of available meeting minutes revealed only approval by the Commission of a petty cash replenishment on June 19, 2007, three months after the first petty cash check was written on March 20, 2007. "
"Three checks totaling $12,744.58 were made payable to ANC 7A's treasurer and/or cash. As stated in the previous finding, DC Code, Section 1-309.13 (f) states, in relevant part, that: "No check may be made payable to cash." As presented in Table V, three checks totaling $12,744.58 were written in a manner that not only violated this prohibition, but gives the appearance of an attempted misappropriation of ANC funds in that checks made payable to the vendor were subsequently altered to include the Treasurer's name or the word "cash" after the vendor's name allowing the Treasurer to cash the checks. It is not clear whether the Chairperson, the second signer of these checks, approved the alteration of the checks or was aware that the checks had been altered in this manner."
"The endorsement on the $10,000 check indicated that the Treasurer cashed the check at a branch of the ANC's bank. This action showed poor judgement on the Treasurer's part in that she put ANC 7A's funds at risk of being stolen, lost or misappropriated. Further, the failure of the Treasurer to file quarterly financial reports, and supporting documentation, for the quarters in which the checks were disbursed suggests an effort to misappropriate ANC funds and to conceal the theft by failing to file required quarterly financial reports."
CHECKS WHICH VIOLATED THE ANC ACT AND AUDITORS GUIDELINES
Check #138
7/22/07
$744.58
Payee: Target/Treasurer's Name [Charlene Exum]
Purpose of Expenditure: Office Supplies
Check #140
7/31/07
$10,000.00
Payee: Wal-Mart/Cash
Purpose of Expenditure: Office Supplies
Check #159
12/3/07
$2,000.00
Payee: Wal-Mart/Treasurer's Name
Purpose of Expenditure: Office Supplies
HIGHLIGHTS OF AUDITORS RECOMMENDATIONS:
1. ANC 7A's Treasurer submit copies of invoices and receipts to support the expenditure of the $12,744.58 to this office within 30 days from he date of this report. If the Treasurer fails to provide original supporting documentation, the Treasurer must promptly repay the ANC the $12,744.59 or the Auditor will refer the matter to the Office of the Attorney General for assistance in recovering from the Treasurer any portion of the $12,744.58 which is not supported by required legitimate documentation."
4. The current Treasurer of ANC 7A should be promptly removed as treasurer.
"ANC 7A's Checking and Savings Accounts were frozen and its check book surrendered to the auditor."
"ANC 7A's Treasurer filed an insurance claim for stolen computers and printers but failed to provide documentation to support the claim. On August 11, 2008, the Auditor's Office contacted Safeware Insurance Agency which issued a $10,000 policy to ANC 7A on October 22, 2007, and was told that ANC 7A's Treasurer had filed a claim on March 11, 2008 for seven (7) desktop computers and two (2) printers. As of August 11, 2008, the Treasurer had failed to provide a copy of the police report, proof of ownership of the equipment, the make, model, or serial numbers of the stolen equipment, and a written statement of events in the claimant's own words as required by the insurance agency. Therefore, according to an agency representative, the claim was closed."
"According to the police report dated January 22, 2008, the alleged burglary could have occurred between December 10, 2007 and January 22, 2008. Some of the stolen property listed on the police report included 2 flat screen televisions, 2 printers, 7 desktop computers, and a digital camera."
This is just a highlight of some of the serious issues uncovered by the DC Auditor during the audit of Advisory Neighborhood Commission 7A. To view the entire audit report click HERE.
Per the Advisory Neighborhood Commission website:
Advisory Neighborhood Commission 7A
Mailing Address:
4201 D Street SE
Washington, DC 20019
Phone: 584-0091
Meeting Location:
Call 584-0091 for location
Meeting Date:
3rd Tuesday, 7:30 p.m.
7A01
Sheila Carson-Carr
7A02
Beyshinah Woods
7A03
Pride Hiett
7A04
Charlene Exum
7A05
Karen Settles
7A06
Eddie Rhodes
7A07
Villareal Johnson
Click HERE to read the June 10, 2009 Audit Letter of ANC 7A for Fiscal Years 2005 through 2008, as of March 31, 2008.
A FEW HIGHLIGHTS OF THE AUDIT:
ANC 7A'S Checking, Savings and Petty Cash Account as of March 31, 2008
Petty Cash Account: 0
Checking Account: $55,236.96
Savings Account: $41, 117.30
Actual Cash Balance: $96,554.26
"The Auditor found that ANC 7A's Treasurer maintained adequate documentation to support only $8,973.71, or 29.44% of the $30,447.75 in disbursements made during the audit period. Since ANC 7A's Treasurer failed to submit quarterly financial reports for the 4th quarter of fiscal year 2007 and the 1st and 2nd quarters of fiscal year 2008, the Auditor has no evidence that invoices, receipts, and employee time sheets were maintained by ANC 7A's Treasurer to substantiate $21,504.04 in unsupported disbursements.
"ANC 7A's Treasurer filed the majority of quarterly financial reports late during the audit period resulting in the forfeiture of $16,463.40 in allotments."
"ANC 7A's Chairperson and Treasurer failed to follow petty cash procedures....The Auditor found that ANC 7A's Chairperson and Treasurer issued four checks totaling $837.24 made payable to "cash" in violation of D.C. Code Section 1-309.13 (f)....no receipts were provided to support the replenishment".
"It appears that the fund was also established without prior Commission approval. The Auditor's review of available meeting minutes revealed only approval by the Commission of a petty cash replenishment on June 19, 2007, three months after the first petty cash check was written on March 20, 2007. "
"Three checks totaling $12,744.58 were made payable to ANC 7A's treasurer and/or cash. As stated in the previous finding, DC Code, Section 1-309.13 (f) states, in relevant part, that: "No check may be made payable to cash." As presented in Table V, three checks totaling $12,744.58 were written in a manner that not only violated this prohibition, but gives the appearance of an attempted misappropriation of ANC funds in that checks made payable to the vendor were subsequently altered to include the Treasurer's name or the word "cash" after the vendor's name allowing the Treasurer to cash the checks. It is not clear whether the Chairperson, the second signer of these checks, approved the alteration of the checks or was aware that the checks had been altered in this manner."
"The endorsement on the $10,000 check indicated that the Treasurer cashed the check at a branch of the ANC's bank. This action showed poor judgement on the Treasurer's part in that she put ANC 7A's funds at risk of being stolen, lost or misappropriated. Further, the failure of the Treasurer to file quarterly financial reports, and supporting documentation, for the quarters in which the checks were disbursed suggests an effort to misappropriate ANC funds and to conceal the theft by failing to file required quarterly financial reports."
CHECKS WHICH VIOLATED THE ANC ACT AND AUDITORS GUIDELINES
Check #138
7/22/07
$744.58
Payee: Target/Treasurer's Name [Charlene Exum]
Purpose of Expenditure: Office Supplies
Check #140
7/31/07
$10,000.00
Payee: Wal-Mart/Cash
Purpose of Expenditure: Office Supplies
Check #159
12/3/07
$2,000.00
Payee: Wal-Mart/Treasurer's Name
Purpose of Expenditure: Office Supplies
HIGHLIGHTS OF AUDITORS RECOMMENDATIONS:
1. ANC 7A's Treasurer submit copies of invoices and receipts to support the expenditure of the $12,744.58 to this office within 30 days from he date of this report. If the Treasurer fails to provide original supporting documentation, the Treasurer must promptly repay the ANC the $12,744.59 or the Auditor will refer the matter to the Office of the Attorney General for assistance in recovering from the Treasurer any portion of the $12,744.58 which is not supported by required legitimate documentation."
4. The current Treasurer of ANC 7A should be promptly removed as treasurer.
"ANC 7A's Checking and Savings Accounts were frozen and its check book surrendered to the auditor."
"ANC 7A's Treasurer filed an insurance claim for stolen computers and printers but failed to provide documentation to support the claim. On August 11, 2008, the Auditor's Office contacted Safeware Insurance Agency which issued a $10,000 policy to ANC 7A on October 22, 2007, and was told that ANC 7A's Treasurer had filed a claim on March 11, 2008 for seven (7) desktop computers and two (2) printers. As of August 11, 2008, the Treasurer had failed to provide a copy of the police report, proof of ownership of the equipment, the make, model, or serial numbers of the stolen equipment, and a written statement of events in the claimant's own words as required by the insurance agency. Therefore, according to an agency representative, the claim was closed."
"According to the police report dated January 22, 2008, the alleged burglary could have occurred between December 10, 2007 and January 22, 2008. Some of the stolen property listed on the police report included 2 flat screen televisions, 2 printers, 7 desktop computers, and a digital camera."
This is just a highlight of some of the serious issues uncovered by the DC Auditor during the audit of Advisory Neighborhood Commission 7A. To view the entire audit report click HERE.
Per the Advisory Neighborhood Commission website:
Advisory Neighborhood Commission 7A
Mailing Address:
4201 D Street SE
Washington, DC 20019
Phone: 584-0091
Meeting Location:
Call 584-0091 for location
Meeting Date:
3rd Tuesday, 7:30 p.m.
7A01
Sheila Carson-Carr
7A02
Beyshinah Woods
7A03
Pride Hiett
7A04
Charlene Exum
7A05
Karen Settles
7A06
Eddie Rhodes
7A07
Villareal Johnson