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General Questions
1. What Is the Neighborhood Council (NC) Funding Program?

a. In 1999, voters in the City of Los Angeles approved changes to the City Charter, which added Section 900 to create the NC System. With the creation of the NC System, the Plan for a Citywide System of NCs (Plan) was also drafted and adopted. The Plan discusses financial accountability relative to NCs and the requirements for proper spending of public funds.

2. What is the Office of City Clerk’s Role with the Neighborhood Council Funding Program?

a. Per ordinance 184835, The Office of the City Clerk is tasked with administering the NC Funding Program, which includes:

  1. Facilitate access by the NCs to their annual budget allocation by making the process of spending public funds simple, while maintaining accountability and transparency; 
    and
  2. Ensure public funds are spent appropriately following all City government laws, policies, rules, guidelines and expectations and that said regulations and policies are applied consistently across the NC System.
3. How much does a Neighborhood Council receive? 

a. During the City’s annual budgeting process, the City Council and Mayor’s Office allocate funds to the Neighborhood Council Trust Fund, and the funds are made available to the Neighborhood Council. How much an NC receives may change from one Fiscal Year to another.

4. What can the Neighborhood Councils purchase?

a. The NC Funding Program Policy 2.0 states, the Neighborhood Council may expense their funds under three categories:

  1. General/Operational – expenditure for the functions, operations, outreach activities, and duties of the NC
    a. Office/Operational
    b. Outreach
    c. Elections
  2. Neighborhood Purposes Grants (NPGs) – monetary grants to support projects/activities proposed by 501c3 nonprofit organizations and public schools, not including religious institutions and private schools.
  3. Community Improvement Projects (CIPs) – Intended for projects that beautify and enhance public spaces, such as murals/public artwork, street median landscaping/maintenance, tree planting, street furniture, community gardens, etc.  
5. What documents do you need to process a payment request?

a. To issue payment to a vendor, the NC Funding Program requires a Board Action Certification (BAC) form showing the approval of the expenditure and an invoice. Other documents may be required depending on type of expenditure. For example, for a NPG payment, a completed NPG application with corresponding supporting documentation. Please review the NC Funding Policies and Guidelines.

6. When and why does the City need a vendor's W-9?

a. When vendors provide services to the City, they will need to provide their W-9. The City will need a current W-9 form so that the City Controller may file necessary information as part of the annual 1099 reports with the IRS.  Not filing correct or complete 1099 reports with the IRS, may cause the City financial penalties.

7. Can NCs pay for services in advance?

a. The City does not generally allow for payments in advance of services or goods being rendered. However, under the NC Funding Program, NCs are able to place a 50% deposit not to exceed $1000 for services if authorized by the NC Funding Program. Additional exceptions may be provided. It is recommended NCs contact their Funding Representative if prepayment is needed.

8. What are the fiscal year deadlines?

a. The City starts its fiscal year on July 1st and ends on June 30th. 

  1. The Neighborhood Council fiscal deadlines are:
    1. May 20th - Final date to request an event approval for the current fiscal year using current fiscal year funds;
    2. June 1st - Final date to submit a check payment request using current fiscal year funds; and
    3. June 20th - Final day for any bank card transactions using current fiscal year funds. 
Neighborhood Purposes Grants
1. What is a Neighborhood Purpose Grant?

a. A Neighborhood Purpose Grant (NPG) is an award of public funds to a 501(c)3 non-profit organization or public school for a project that will benefit the public. NPGs are outlined in the Los Angeles Administrative Code 22.817 as follows: “a NPG is a grant a NC can provide a 501c3 (excluding non-religious institutions and private schools) or public schools for the purposes of providing a public benefit.” Please refer to NC Funding Policy and Guideline 2.4 for more information on NPGs. 

2. What ordinance number created the NPGs?

a. The ordinance number is 180155, and it was established in August 2008.

3. Can NCs modify a NPG Application?

a. No. A NC cannot modify an NPG application received for its consideration. NPG applications should be filled out and completed by the applicant. During the course of its board meeting where an NPG application is being considered, the NC board may amend its motion pertaining to the grant request in an open and transparent manner, i.e. amend to decrease the grant amount requested due to funds available or other reasons.

4. Can a NPG fund an event?

a. NPGs are specifically for the purpose of awarding funds to a public school or 501(c)3 non-profit organization for the benefit of the community as a whole, and for purposes that are free, accessible, and open to the public. As such, a NPG request may involve funds to support a community event that is free, accessible, and open to the general public.

5. What should a NC evaluate when voting for a NPG?

a. When an organization submits a completed NPG application, the NC should evaluate the grant application for the public benefit it provides. NPGs are specifically for the purpose of awarding funds to a public school or 501(c)3 non-profit organization for the benefit of the community as a whole, and for purposes that are free, accessible, and open to the public. The NC should also review NC Funding Policy 2.4 and Applicant Instruction documents for other considerations and restrictions.

6. A member of the board has an affiliation with the requesting organization, what should we do? 

a. Prior to the meeting and evaluating the NPG application, the individual is advised to contact the Department of Neighborhood Empowerment (DONE) and City Attorney - Neighborhood Council Advice Division (NCAD) for guidance to address any potential conflict of interest concerns.

7. Does a board member need to contact the City Attorney - Neighborhood Council Advice Division (NCAD) for every potential conflict of interest?

a. Yes. Even if a similar situation has presented itself before, particular circumstances may change that may impact factors for consideration and advice by NCAD.

8. How can I check if a NPG applicant has applied for a NPG with another Neighborhood Council?

a. By using the Neighborhood Council Funding Dashboard. 

  1. Click on the “Payment Request” tab
  2. Click on the pie chart
  3. Type the name of the organization in the Search bar on the right side of the page. 

Search options include filtering by fiscal year, specific Neighborhood Council, or Funding Requests approved or denied. 

Community Improvement Projects
1. What is a Community Improvement Project?

a. Community Improvement Projects (CIPs) are community beautification projects on public property, involving relatively small to medium scope of work. Please refer to NC Funding Policy 2.5 for more information on CIPs. 

2. Can a Neighborhood Council use their funds to pay for a mural?

a. Neighborhood Councils may use their funds to commission a mural. However, restrictions may apply per applicable administrative codes and/or procurement rules. For murals, NCs are advised to work with the Department of Neighborhood Empowerment (DONE) for guidance on securing the necessary authorizations or permits.

3. Our NC wants to do a community clean-up, would that be considered a CIP or outreach activity?

a. Depending on the scope of the activity, a community clean-up may be considered a community event, which would require the NC to submit an event application to the City Clerk, NC Funding Program for approval. Please refer to NC Funding Policy 2.2.2 for more information on NC Events. 

Operational Expenditures
1. What are operational expenditures?

a. Operational Expenditures are expenses made for the purposes of NC’s operations such as, but not limited to, printing for a meeting, translations services for a meeting, leases, and utilities. A list of operational expenditures can be found under NC Funding Policy 2.1.

2. What happens at the beginning of the fiscal year if the NC's operational expenses exceed the $600 monthly limit?

a. If your NC has not yet approved and submitted its Administrative Packet/annual budget when the new fiscal year begins, your NC funding account is limited to $600 per month to help pay for operational expenditures. If this is your case, please contact your Funding Representative to assist with operational payments exceeding $600. Additional funds can be made available, as needed. 

Election Expenditures
1. Why do NCs need to have an Elections Expenditure category?

a. This was a metric used to identify how much has been spent on Elections by a NC as part of their efforts to have a successful election season.

Outreach Expenditures
1. What is the difference between a NC hosting an event versus a NC co-hosting an event?

a. NC hosted and Co-hosted events are outreach activities that are either fully supported by an NC or in collaboration with another organization, including other NCs.. An event is considered hosted or co-hosted if the NC takes part in the planning, implementation, and/or supporting the event financially. NCs are also considered host/co-hosts if the NC is named as a sponsor of an event in flyers, advertisements, banners, etc. 

  1. An invitation to table at an event organized by another entity or purchasing the right for a table may not require an event application. 

If you cannot determine whether the NC is considered to be a host or co-host of an event, please contact DONE or the Office of the City Clerk, NC Funding Program.

2. What documents are required for a complete Event Approval Request?

a. A completed Event Approval Request includes the following:

  1. Completed Event Approval Request Form
  2. Board Action Certification (BAC) form indicating the Board’s approval of the event
  3. Itemized event budget 

Additional documents may be required following the initial submission of an event, such as invoices or Certificates of Insurance from participating vendors, to assess any potential contract considerations or risk and liability exposures to the City. Additional information is provided here: NC Event Planning Checklist

3. Can a NC provide food for the public at a non-event outreach activity?

a. NCs may provide food at a non-event outreach activity if the NC secures all required permits and authorization from the vendor and/or the County. Additional information is provided here: NC Event Planning Checklist

4. Can we charge the public to participate in a NC Event?

a. No, NC hosted or co-hosted events, including those supported through a NPG, must be free and open to the public. There cannot be a charge incurred by the public to participate in the event. A participating, co-host agency or organization in the event may request a recommended donation; However, it cannot be required.

5. Why do you need an Event Approval Form if you are just using the NC Logo?

a. Whether a NC is co-sponsoring/co-hosting an event with financial or in-kind support, the City and your Neighborhood Council is involved and there are risks and liabilities to consider for the City. Please consult with your NC Funding Representative to discuss the appropriate use of the logo and to ensure the event request is properly submitted. 

6. Do you need to submit an Event Approval Request for a NC  online-platform event without funds?

a. NC events are City events. Whether in-person or via an online web-platform, event review and approval is still required to assess potential risk and liability exposures to the City.

7. When securing a Street Closure permit from Street Services, why are board members held liable after signing a Hold Harmless waiver?

a. Street Services should not require Neighborhood Council board members to sign a Hold Harmless waiver. When requesting a street closure permit, Neighborhood Councils should inform Street Services of their affiliation with a Neighborhood Council as a City entity.

b. Neighborhood Councils, while typically covered by the City's self-insurance as City entities, require a separate Special Event Insurance policy for any special events they host. This policy is crucial to cover potential losses or liabilities. Proof of this coverage must be submitted via the KwikComply system (https://kwikcomply.org/) prior to the event. For further assistance, please contact your Department of Neighborhood Empowerment (DONE) Field Representative. 

Special Accounts
1. What is a special account?

a. Special accounts are financial accounts created through LA City Council action. The Council File will outline how the funds may be used; in some cases, Neighborhood Councils are allocated special accounts for a specific project or activity.

2. How can a NC spend a special account fund?

a. NCs are able to utilize the special accounts through the NC Funding System portal, as determined by the NC Funding Program. During Board approval, the NC must specify the use of special account funds versus their general fiscal year funds. 

Neighborhood Council Bank Cards
1. My NC bank card was declined at the register. What should I do?

a. Please call the bank Customer Service telephone number listed on the back of your card.  The bank representative will ask for verification information to confirm your account. Your NC Funding Representative can provide the information to you, if you don’t already have it.

2. Our board has appointed a new cardholder. What is the process to get a new bank card issued to the NC?

a. Please contact the NC Funding Program at 213-978-1058 or Clerk.NCFunding@lacity.org 

b. The new cardholder will be required to complete a New Bank Card Account Information Sheet.

3. What happens if I lose the receipt?

Per Policy 2.0.7, Lost or Missing Receipts:

  1. When a required NC bank card receipt is lost or otherwise unavailable and all measures to obtain a copy have been exhausted, a Missing Receipt Affidavit should be completed and submitted.
  2. A Missing Receipt Affidavit should be used on rare occasions and may not be used on a routine basis. A maximum of two (2) Affidavit submissions are permitted during a fiscal year. More than 2 uses of the Affidavit during the fiscal year may revoke the privilege of providing a declaration in lieu of a receipt, lead to freezing of the NC bank card, and any further action by the Funding Program as deemed appropriate or necessary.
  3. A Board Action Certification (BAC) form authorizing the use of the Missing Receipt Affidavit must be provided when submitting the Affidavit in lieu of the missing receipt. The Affidavit and BAC must be submitted through the NC Funding System portal  
Neighborhood Council Contracts and Leases 
1. What are the types of contracts a Neighborhood Council can enter into?

a. Neighborhood Councils cannot enter into contracts on their own. Contracting authority is delegated to the Office of the City Clerk by the City Council. NCs must present any potential work or projects that may require an agreement to the City Clerk for further contract considerations prior to starting the work or project. 

2. What documents are required from a vendor when entering into a contract?

a. Documents needed may differ depending on the type of contract and services/deliverables involved. The following are types of documents usually required: 

  1. The Board Action Certification (BAC) form approving the expenditure
  2. Itemized Invoice or Scope of Work from the vendor
  3. Vendor’s Certificate of Insurance
  4. Vendor’s W-9
  5. Additional supporting documentation or information at the request of the NC Funding Program which may include, but are not limited to:
    1. Vendor’s Business Tax Registration Certificate (BTRC)
    2. On-Site Facility Checklist (for Facility Use or Lease Agreements)
    3. Authorizations or permits from other City Departments deemed necessary, i.e. ADA Inspection approval from the Department on Disability (DoD) for Facility Use or Lease Agreements, or Authorization Letter from the Department of Transportation (DOT) for utility box projects.
3. Why does the City need an Assignment of Rights for artwork?

a. Items/services purchased using NC funds, including artwork, designs, other intellectual property-related items/services, would become property of the City. An Assignment of Rights Agreement would define and protect the rights and responsibilities involved in the creation, ownership, and use of the design or artwork. The agreement clarifies ownership, usage rights, and potential infringement, ensuring legal protection for creative work secured with City public funds. 

4. Do we need a contract with LAUSD or other City Departments when applying for a permit?

a. When applying for a permit from another City Department or public agency, a contract may not be necessary, but may still be considered on a case-by-case basis, particularly if those agencies require one. Our office must still review the permit application, completed but unsigned, before the NC can submit it to the corresponding Department. In most cases, the City Clerk may issue a Letter of Authorization (LOA) for the NC President to sign the application and submit it to the City Department or public agency to secure  the permit. 

Board Member Reimbursements
1. What documents are needed to request a Board Member Reimbursement?

a. To issue a reimbursement, Treasurers must submit:

  1. BAC form approving the expenditure
  2. BAC form approving the Board Member’s reimbursement
  3. Proof of purchase (i.e. itemized receipts, invoices, or additional documents that may be requested, etc.)
2. When should a Board Member use personal funds to pay for NC activity expenses, and under what conditions can they be reimbursed?

a. NC activities should be well planned, with necessary expenditure payments planned in advance to determine whether the NC bank card or a check payment request will be needed to make payments to vendors. As an option of last resort, if regular NC payment methods are not available, a Board Member may spend his/her own funds to pay for NC activity expenses, for which the Board Member may be reimbursed from the NC’s funds.

3. What is the board member reimbursement limit?

a. The total allowable reimbursement amount cannot exceed $1000 per Board Member per Fiscal Year.

4. Does the City reimburse board members for mileage?

a. No. Currently, there is no mechanism to reimburse NC board members for mileage or parking.

5. Does a board member need to submit their credit card statement to be reimbursed?

a. The NCFP may request board members to submit personal credit card statements for reimbursement on a case-by-case basis, typically when the accounting team may have additional questions concerning a transaction.  

Expenditures during a Declared Emergency
1. What type of declared emergencies can NC’s provide emergency expenditures?

a. Emergencies as determined and declared officially by a government agency. In the City of Los Angeles, this usually entails the City Council and the Mayor issuing a declaration through an approved ordinance.

2. What can a NC buy during a Declared Emergency?
  1. If a local, state, or federal government agency declares an emergency, the NCs are authorized to expend NC funds not exceeding $1,000.00 total for emergency services and/or supplies such as:
    1. Water and light refreshments for first responders
    2. Water and light refreshments for affected persons
    3. Emergency generators
    4. Flood lights
    5. Shelter amenities
    6. Blankets
    7. Toiletries
    8. Pet food
    9. Communication equipment/services: Walkie-talkies, Radios, Bullhorns, Flyers, Banners etc.
  2. Additional provisions may apply, please review the NC Funding Policy 5.0 for additional guidance on Declared Emergency Expenditures.
3. If the NC bank card is unavailable, how can we make emergency expenditures?

a. In the event the NC bank card is not available for use and with authorization from the NC President as described herein, a Board Member may use their personal funds for emergency services and/or supplies outlined in NC Funding Policy 5.0.

4. Who is considered an “Affected Person"?

a. Affected persons include community members, stakeholders in City neighborhoods deemed impacted by the declared emergency. Affected persons include particular populations such as older adults and children, people with disabilities, people with language barriers and limited access to vital information.