Page 92 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Significant Accounting Policies

NONSPENDABLE FUND RESTRICTED FUND ASSIGNED FUND UNASSIGNED FUND COMMITTED FUND
BALANCE BALANCE BALANCE BALANCE BALANCE

•Portion of net •This term will is used •This term is used to •The residual net •The portion of fund
resources that cannot to describe net fund describe the portion of resources in excess of balance constrained

be spent because of resources subject to fund balance that what is properly by limitations imposed

their form and externally enforceable reflects a categorized in one of by government at its
because they must be legal restrictions. government’s the other four highest level and

maintained intact. intended use of categories. remains binding unless
resources. removed in the same
manner.

FUTURE GFOA POLICIES TO DISCUSS
The Town of Westlake has several relevant financial policies to preserve and enhance the fiscal health of
the Town. We also identify acceptable and unacceptable courses of action and provide a standard to
evaluate the school’s fiscal performance.

Very soon, GFOA will be recommending all governments include the following policies that guide the
development of their budget and are central to a strategic long term approach to financial management.

1. Operating Budget Policy
(already incorporated into the Fiscal and Budgetary Policies)
This section of the Fiscal and Budgetary Policies will also be updated to include the following
policies that guide the development of the budget and are central to a strategic approach to our
financial management.

These components will need to be reviewed, updated if necessary, and/or added and approved
by the Board of Trustees in subsequent years.
1. Basis of Budgeting
2. Budget Adoption
3. Budget Classification and Format
4. Organization of the Budget
5. Budget Message Requirement
6. Funds Budgeted
7. Length of the Budget Year
8. Presentation of Proposed Budget
9. Revenue Forecasting Requirements
10. Expenditure Forecasting Requirements
11. Performance Measurements
12. Line-Item Transfer Authority
13. Retention of Budget Record

2. Capital Asset Management
(already incorporated into the Fiscal and Budgetary Policies)
Town of Westlake operates an extensive amount of buildings, equipment, furniture, and
vehicles. This purpose of this policy is to:
o provide a management framework to ensure that all capital assets are repaired,
maintained, and replaced and
o to identify the responsible parties who shall protect, oversee and report needed repairs.

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