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Appendices

STATEMENT OF FINANCIAL PRINCIPLES

Accounting, Budgeting, and Financial Planning

 The City will establish accounting practices that conform to generally accepted accounting principles as set forth by the
Governmental Accounting Standards Board.

 An independent certified public accounting firm will perform an annual audit and an official comprehensive annual
financial report (CAFR) shall be issued no later than 6 months following year-end.

 The independent certified public accounting firm shall provide a management letter, if one is issued, no later than March
31 following the end of each fiscal year.

 The City shall submit the CAFR to the Government Finance Officers Association (GFOA) for the purpose of earning the
Certificate of Achievement for Excellence in Financial Reporting.

 The City shall prepare an Annual Operating Budget and submit it for City Council approval prior to September 30.

 The Annual Operating Budget shall be prepared such that current revenues plus net operating transfers will be sufficient
to support current expenditures.

 Expenditures from all operating funds shall not exceed the budgeted appropriations (as amended) for these funds.

 An adequate level of maintenance and replacement will be funded each year to ensure that all capital facilities and
equipment are properly maintained.

 Charges for services and other revenues will be annually examined and adjusted as deemed necessary to respond to
cost increases or any other changing circumstances.

 A 3-year financial forecast shall be prepared annually projecting revenues and expenditures for all operating funds. This
forecast shall be used as a planning tool in developing the following year's operating budget.

 The City shall submit the Annual Operating Budget to the GFOA for the purpose of earning the Distinguished Budget
Presentation Award.

2020 Adopted Budget and Business Plan 268 City of Arlington, Texas