Page 179 - PowerPoint Presentation

B. External Auditing - Town will be audited annually by outside independent accountants
(auditors). The auditors must be a CPA firm and must demonstrate significant experience in the
field of local government auditing. They must conduct the town’s audit in accordance with
generally accepted auditing standards and be knowledgeable in the Government Finance
Officers Association Certificate of Achievement program. The auditors’ report on Town’s
financial statements will be completed within a timely period of the Town’s fiscal year-end. The
auditor will jointly review the management letter with the Town Council, if necessary. In
conjunction with this review, the Finance Director shall respond in writing to the Town Council
regarding the auditor’s Management Letter, addressing the issued contained therein. The
Town will not require auditor rotation but will circulate request for proposal for audit services
on a periodic basis as deemed appropriate.

C. External Financial Reporting - Town will prepare and publish a comprehensive annual financial
report (CAFR). The CAFR will be prepared in accordance with generally accepted accounting
principles and will be presented annually to the Government Finance Officers Association
(GFOA) for evaluation and awarding of the Certificate of Achievement for Excellence in
Financial Reporting.
D. Responsibility of Auditor to Town Council – The auditor is retained by and it accountable
directly to the Town Council and will have access to direct communication with the Town
Council if the Town Staff is unresponsive to auditor recommendations or if the auditor
considers such communication necessary to fulfill its legal and professional responsibilities.

E. Internal Financial Reporting - The Finance Department will prepare internal financial reports
sufficient for management to plan, monitor, and control Town’s financial affairs.

XIV. CAPITAL BUDGET AND PROGRAM
A. Preparation - The Town’s capital budget will include all capital projects funds and all capital
resources. While the capital budget will be prepared annually on a project basis, it will be
based on an on-going, multi-year capital improvement plan (CIP) that shows all funded and
unfunded projects as identified by staff for all Town facilities and infrastructure. The multi-year
CIP will be reviewed annually, updated by staff and presented to the Council for its review and
approval. The annual capital budget will be prepared by the Finance Department with the
involvement of responsible departments based on the multi-year CIP.

B. Control - All capital project expenditures must be appropriated in the capital budget. The
Finance Director must certify the availability of resources before any capital project contract is
presented to the Town Council for approval.

C. Program Planning - The capital budget will be taken from the capital improvements project
plan for future years. The planning time frame for the capital improvements project plan
should normally be five years, with a minimum of at least three years. The replacement and
maintenance for capital items should also be projected for the next five years. Future
maintenance and operational costs will be considered so that these costs can be included as
appropriate in the annual budget.

D. Financing Programs - Where applicable and with Council approval, impact fees, pro-rata
charges, assessments, or other fees should be used to fund capital projects which have a
primary benefit to specific, identifiable property owners. Recognizing that long-term debt is
usually a more expensive financing method, alternative financing sources will be explored
before debt is issued. When debt is issued, it will be used to acquire major assets with
expected lives which equal or exceed the average life of the debt issue.

E. Reporting - Periodic financial reports will be prepared to enable the department directors to
manage their capital budgets. Summary capital project status reports will be presented to the
Town Council quarterly.

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