Page 109 - Pantego FY22 Operating Budget

I. PURPOSE STATEMENT

The intent of the following Financial Management Policies is to enable the Town of Pantego
(the “Town”) to achieve a long-term stable and positive financial condition. The guiding
principles of the Town's financial management include integrity, prudent stewardship,
planning, accountability, and full disclosure.

The more specific purpose of this policy is to provide guidelines to the Finance Director and
the Town Manager in planning and directing the Town's day-to-day financial affairs and in
developing recommendations to the Town Council.

The scope of these policies generally spans, among other issues, accounting, auditing,
financial reporting, internal controls, operating and capital budgeting, revenue management,
cash and investment management, expenditure control, debt management, and planning
concepts, to:

a) Present fairly and with full disclosure the financial position and results of financial
operations of the Town in conformity to generally accepted accounting principles (GAAP)
as set forth by the governmental accounting standards board (GASB), and
b) Determine and demonstrate compliance with finance related legal and contractual issues
in accordance with provisions of the Texas Local Government Code and other pertinent
legal documents and mandates.

II. GENERAL IMPLEMENTATION AND COMPLIANCE GUIDELINES

A. FINANCE/AUDIT COMMITTEE. A committee designated as the Finance Committee, will
be appointed annually by the Town Council, and will consist of two members of the
Council, the Town Manager, and the Finance Director. The committee will meet
quarterly, or as needed. The committee will report to the Town Council within 10-14 days
after each meeting. The function of the committee will be:

1) Fiscal policy review,
2) Auditor selection recommendation,
3) Investment policy review and guidance, and
4) Long Range Planning.

B. ANNUAL REVIEW. Based upon the results and recommendations of the Finance
Committee review, the Town will annually approve new or revisions to fiscal policies.

C. IMPLEMENTATION, COMPLIANCE AND REVIEW. The Finance Director will be
accountable for implementing these policies and will to the best of his/her knowledge
make the Town Manager, Finance Committee and Town Council aware of any variances
in, practice from these policies or any other deviation from prudent financial practices in
accordance with GAAP, state/federal laws and/or ethics of the profession. Any variances
will be presented at quarterly meetings of the Finance Committee unless there is a need
for a special meeting.

103