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FINANCIAL POLICIES

Accounting, Budgeting, and Financial Reporting

1. The City will maintain its accounting records in accordance with state and federal laws and regulations. The City will report
its financial condition and results of operations in accordance with generally accepted accounting principles as set forth by
the Governmental Accounting Standards Board.

In Compliance: Yes Comments: FY20 Annual Financial Report issued March 3, 2021 with an unmodified “clean”
opinion.

2. An independent certified public accounting firm will annually perform the City’s financial and compliance audits in
accordance with required applicable laws, regulations, and standards. The audit reports (and management letters, if issued)
will be issued no later than 6 months following the fiscal year end.

In Compliance: Yes Comments: FY20 Annual Financial Report presented to Finance and Audit Committee March 30,
2021 with report out to City Council the same day.

3. The audit opinion will be presented as part of the Annual Financial Report and will be issued no later than 6 months following
fiscal year end.

In Compliance: Yes Comments: Audit opinion included in FY 2020 Annual Financial Report.

Budget and Financial Planning

1. The City shall prepare an Annual Operating budget and submit it to the City Council in August, providing adequate time for
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Council’s consideration prior to approval and adoption by Sept. 15 and in accordance with V.T.C.A, Local Government
Code, Sections 102.001 et seq.

In Compliance: Yes Comments: The FY21 Proposed Budget was presented to Council on Aug. 4 and adopted by
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two readings of the ordinance on Sept. 8 and 15 .
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2. The Annual Operating Budget shall be prepared such that recurring revenues plus net operating transfers will be sufficient
to support recurring expenditures.

In Compliance: Yes Comments: The FY21 Budget balanced with recurring revenues and net operating transfers
supporting recurring expenditures in all funds.

3. Budgets are adopted at the fund level and expenditures from all operating funds shall not exceed the budgeted
appropriations (as amended) for these funds. Internal service funds are considered an exception, where available balances
are a result of expenditures that were lower than adopted and budgeted in prior years.

In Compliance: Yes Comments: Expenditures under budget in all funds in FY20, except the Communication Services
fund, which is an internal service fund and thus exempt as described above.

4. A Budget Analysis Report (BAR) will be prepared quarterly and presented to Council or made available on the City’s website.
The BAR will include estimated year-end revenue and expenditures for operating funds, as well as business plan progress.
The 3 Quarter BAR will be presented as part of the proposed annual operating budget.
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In Compliance: Yes Comments: Budget Analysis Reports are completed quarterly. The 1st Quarter BAR was
presented to Council at the Spring Planning Session in April. The 2nd Quarter BAR is available
on the City’s website.

FY 2022 Adopted Budget and Business Plan 341 City of Arlington, Texas