Page 259 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW, TEXAS

FINANCIAL MANAGEMENT POLICIES

I. Purpose

The City of Saginaw has a responsibility to its citizens to carefully account for public
funds, to manage municipal finances wisely, and to plan for the adequate funding

of services desired by the public. These policies are designed to establish
guidelines for the fiscal management of the City.

II. Policy

These policies shall be reviewed periodically and will be presented to the City
Council for approval of any significant changes. Such periodic review shall occur
not less than every five years. The review shall be conducted by a committee

made up of not more than three City Council members. The committee will also
include at least two staff members and a minimum of one qualified citizen. A
qualified citizen is a person over the age of twenty-one who has experience in the

area of accounting or finance. The citizen must either reside or operate a business
within the city limits of Saginaw.

Ill. Basis of Accounting

A. Governmental Funds — The City' s accounting records for general
governmental operations are maintained on a modified accrual basis in
accordance with Generally Accepted Accounting Principles ( GAAP). Revenues are
recorded when measurable and available and expenditures are recorded when
goods and services are received or when a commitment to purchase is made.

B. Proprietary Funds — The City' s accounting records for enterprise operations
water and wastewater service) are maintained on a full accrual basis in
accordance with Generally Accepted Accounting Principles ( GAAP). Revenues are
recorded when they are earned by and due to the City and expenditures are
recorded when goods and services are received or when a commitment to
purchase is made.

1

253