Page 448 - Southlake FY20 Budget

Financial Policies
Appendix

FInAnCIAL POLICIES

Introduction

The City of Southlake’s financial policies and charter provisions set forth the basic framework for the fiscal management
of the City. The policies below were developed within the parameters established by the applicable provisions of the
Texas Local Government Code and the City of Southlake Charter. Excerpts from the Charter follow the policy portion
of this section.

City of Southlake

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 the 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 Excellences 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 three-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.

Investments
• Investments shall be made in conformance with the City’s Investment Policy, with the primary objectives of:

• Safety-preservation of capital in the investment portfolio;
• Liquidity-portfolio remain sufficiently liquid to meet operating requirements; and,
• Yield-goal of rate of return of 102% of U.S. treasury curve at average maturity.

Grants
• All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance
of the grantor, and all gifts and donations shall be managed and expended according to the wishes and instructions
of the donor.

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