NEIGHBORHOOD COUNCIL TREASURER / ACCOUNTING SAMPLES

NEIGHBORHOOD COUNCIL TREASURER. The responsibilities of the Treasurer of a Certified Neighborhood Council shall be described and contained in the approved bylaws of the respective Certified Neighborhood Council. The Treasurer shall be the custodian of the funds of the Certified Neighborhood Council. The Treasurer shall open and maintain a separate bank account for each type of appropriated Fund or Grant received from the City through the Mayor and/or the City Council. The Treasurer shall cooperate fully with the Department of Neighborhood Empowerment ("DONE") in matters related to Certified Neighborhood Council funding, financial affairs and accounting procedures, and shall allow DONE staff access to the accounting records of the Certified Neighborhood Council.

FINANCIAL REPORTING. In accordance with Section 2 (d) of Article 3 of the Plan for A Citywide System of Neighborhood Councils, the Treasurer shall submit accounting statements to DONE at least once per year. Such accounting statements will serve as one component of the compliance review process which will be performed annually by DONE. Sample statements are attached. In addition, if the Certified Neighborhood Council receives grant funding or other funds from the City, the Treasurer shall submit separate accounting statements describing the use of such funds, in a format and at intervals to be prescribed by DONE or other appropriate City agency or department.

The accounting concepts, measurement techniques, and standards of presentation used in the preparation of financial statements are commonly referred to as Generally Accepted Accounting Principles (GAAP). The financial reports to be prepared by the Treasurer of the Certified Neighborhood Council shall include, but not be limited to, information regarding the amount appropriated (or the beginning balance for the subject quarter), additional receipts for the subject quarter, if any, the expenses paid during the reporting period, and the ending balance of the funds. Financial reports shall be received by DONE not later than 90 days after the close of the reporting period.

Listed below are terms and procedural descriptions which the Treasurer should review.

Bank Reconciliation: Each fund or account should be reconciled monthly with bank statements.

Bookkeeping: The Treasurer should set up and maintain an appropriate bookkeeping system for the Certified Neighborhood Council. Documents to be used for purposes of accounting and financial control may be reviewed by the Chief Accounting Employee of DONE.

Books of Accounts: The Treasurer shall keep the books of accounts of the Certified Neighborhood Council. The books should, at a minimum, consist of Cash Receipts and Disbursements Ledgers which would show the beginning cash balance, the kinds and amounts of expenses paid from day to day, and the running balance of each fund. Each type of fund should be duly accounted for under separate ledgers (refer to suggested format).

Disbursements: All disbursements should be approved by the President or the chief officer of the Governing Body of the Certified Neighborhood Council. All disbursements shall be paid by check. Checks drawn shall be signed by the President or the chief officer and countersigned by the Treasurer.

Petty Cash Fund: The Treasurer or authorized designee may create and should be the custodian of a Petty Cash Fund, to be initially established in an amount to be determined by the Governing Body. A Petty Cash Voucher approved by the President or chief officer of the Governing Body should support all disbursements from the Petty Cash Fund.

Receipts: All receipts of funds and/or grants should be deposited intact into their respective bank accounts.