Page 39 - City of Mansfield FY22 Operarting Budget

FINANCIAL REPORTING AND POLICIES

FINANCIAL AND OPERATIONAL POLICIES

The City of Mansfield, Texas has developed financial and operational policies which guided the
development of the budget for fiscal year 2021-2022. The budget has been developed using an analysis
of historical data, current data and forecasted data. The staff identified areas of growth and future needs
in each department. The staff put in place policies and procedures which determine the overall budget
including expected population growth, expansion of services, debt service requirements, capital
improvements, operational maintenance requirements, and staffing level requirements. Each department
is evaluated as to current needs and the projected needs in the next budget year and the following nine
years. Availability of funds is considered to determine what areas may need additional funding. A
complete prior year analysis and future analysis is utilized to determine what areas may be increased,
decreased, or remain constant for the upcoming year. Individual departments are required to submit
departmental budgets for the upcoming fiscal year. The Business Services Department reviews individual
budgets and creates a priority list for each department based on department and administration
considerations. The budget for each department is reviewed by the City Manager's office to ensure each
department is properly funded. The budget’s operational and financial policies are reviewed throughout
the year.

FINANCIAL REPORTING POLICY

Following the conclusion of the fiscal year, the Accounting Department prepares an Annual
Comprehensive Financial Report (ACFR) in accordance with generally accepted accounting and financial
reporting principles established by the Governmental Accounting Standards Board (GASB) and the SEC.
The ACFR shall also satisfy all criteria of the Government Finance Officers Association’s Certificate of
Achievement for Excellence in Financial Reporting. Monthly, semiannual, and quarterly reports on the
City’s finances are reported to City Council.

The ACFR shall show the status of the City’s finances on the basis of General Accepted Accounting
Principles (GAAP). The ACFR shall show fund revenues and expenditures on both a GAAP basis and
budget basis for comparison purposes. In all but two cases, this reporting conforms to the way the City
prepares its budget: compensated absences (accrued but unused sick leave) are not reflected in the budget
but are accounted for in the ACFR’s long-term debt position; and depreciation is not shown in the
budget’s proprietary funds, although the full purchase price of equipment and capital improvements is
reflected as uses of working capital.

Included as part of the Annual Financial Report are the results of the annual audit prepared by
independent Certified Public Accountants designated by City Council. The Finance Department shall
issue a report monthly to the Council reflecting the City’s financial condition for the month. The monthly
report shall present the financial condition of the City in a user friendly and understandable format
consistent with the budget.

REVENUE POLICIES

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.

For every annual budget, the City shall levy two property tax rates: operation/maintenance and debt
service. The debt service levy shall be sufficient for meeting all current principal and interest payments.

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