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Charter. Budgetary control is maintained at the individual expenditure level by
the review of all requisitions of estimated purchase amounts prior to the release
of purchase orders to vendors.

2. The following represents the City’s budget amendment policy delineating
responsibility and authority or the amendment process. Transfers between
expenditure accounts in one department may occur with the approval of the city
manager. Transfers between operating departments may occur with the
approval of the city manager provided that a department’s total budget is not
change by more than five percent. Transfers between funds or transfers
between departments that change a department’s total budget by more than five
percent must be accomplished by budget amendment approved by the City
Council. Budget amendments calling for new fund appropriations must also be
approved by the City Council.

FINANCIAL REPORTING

1. Following the conclusion of the fiscal year, the City’s Director of Finance shall
cause to be prepared a Comprehensive Annual Financial Report (CAFR) in
accordance with the generally accepted accounting and financial reporting
principles established by the Governmental Accounting Standard Board. The
document also shall satisfy all criteria of the Government Finance Officers
Association’s Certificate of Achievement for Excellence in Financial Reporting
Program.

2. The CAFR shall show the status of the City’s finances on the basis of generally
accepted accounting principles (GAAP). The CAFR shall show fund revenues
and expenditures on both a GAAP basis and budget basis for the comparison
purposes.

3. Included as part of the Comprehensive Annual Financial Report shall be the
results of the annual audit prepared by independent certified public accountants
designated by the City Council.

4. The Director of Finance shall issue a report to the City Council reflecting the
results of operations for the month. The report shall be presented on the second
regular City Council meeting of the following month for the period subject to
report.

REVENUES

1. To protect the City’s financial integrity, the City will maintain a diversified and
stable revenue system to shelter it from fluctuations in any one revenue source.
Recognizing that sales tax is a volatile, unpredictable source of revenue, the City
will attempt to reduce its dependence on sales tax revenue.

City of Azle 2020-2021 Budget 25