Page 111 - Pantego FY22 Operating Budget

C. FINANCIAL REPORTING.
1. External Reporting.
a. Scope. The Financial Report shall be prepared in accordance with generally
accepted accounting principles (GAAP) as promulgated by the Government
Accounting Standards Board (GASB).
b. Timing. The Report shall be presented to the Town Council within 150
calendar days of the Town’s fiscal year end. If Town staffing limitations
preclude such timely reporting, the Finance Director will inform the Town
Council of the delay and the reasons thereof.
c. Awards. Upon approval of the Town Council, the Annual Financial Report
may be presented annually to the Government Finance Officer's Association
(GFOA) for evaluation and consideration for the Certificate of Achievement
for Excellence in Financial Reporting. (For a discussion of this award, see
Section XI-C below).
2. Internal Reporting. The Finance Department will prepare internal financial
reports, sufficient to plan, monitor, and control the Town's financial affairs.
Internal financial reporting objectives are addressed throughout these policies.
(See Section IV. Budgeting, C. Reporting, below).

IV. OPERATING BUDGET.

A. PREPARATION. Budgeting is an essential element of the financial planning, control,
and evaluation process of municipal government. The Town's "operating budget" is
the Town's annual financial operating plan.

1. Scope. The scope of the budget includes all funds for which the Town will adopt
a formal budget, including Governmental Funds, Proprietary Funds, and
Fiduciary Funds.

2. Budgetary Process. The budget is prepared by the Town Manager or his/her
designee with the cooperation of all Town Departments. The budget should be
presented to the Town Council between 60 and 90 days prior to fiscal year end
and should be enacted by the Town Council prior to fiscal year end.

The budget process is completed in several steps, and it is initiated by the Town
Manager each spring during the month of April. The first step is to calculate the
year-end estimate of the current year. Departmental Directors/Managers begin
the process by preparing estimates for the remainder of the year. Once the year-
end estimates are completed, the departments begin preparing the proposed
estimates for the upcoming fiscal year.

The second step is the calculation of the proposed base budget for the new year.
This step is the proposed cost for maintaining current base operations and
assumes no additional personnel or additional equipment. Activities which
require additional resources to maintain the service due to growth, new facilities,
new equipment, etc., are considered enhancements to the base budget and must
be explained and justified.

The third step is justification for any proposed new programs or
enhancements/supplemental requests. This is defined as any proposed change

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