Page 510 - FortWorthFY23AdoptedBudget

Accounting, Auditing, and
Financial Reporting Policy

I. Authority

The Fort Worth City Council is responsible for legislation, policy formulation, and overall direction
setting of the government. This includes the approval of financial policies which establish and
direct the operations of the City of Fort Worth. The City Manager and Assistant City Managers
are responsible for carrying out the policy directives of the City Council and managing the day-to-
day operations of the executive departments, including the Department of Financial Management
Services. This policy shall be administered on behalf of the City Manager and the Assistant City
Managers by the Chief Financial Officer / Director of Finance.

II. Purpose:

This policy is intended to establish guidelines to manage and direct the City’s accounting, auditing,
and financial reporting activities. Specifically, under this policy, the City shall comply with
prevailing federal, state, and local statues and regulations, as well as current professional standards,
principles, and practices.

III. Scope:

This policy shall apply to all funds under the budgetary and fiscal control of the City Manager and the
Mayor and City Council.

IV. Glossary

See definitions related to this policy provided in the appendix.

V. Policy:

A. Conformance to Accounting Principles and Recommended Practices

The City’s accounting practices and financial reporting shall conform to Generally Accepted
Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board
(GASB), the American Institute of Certified Public Accountants (AICPA), and the Government
Finance Officers Association (GFOA).

B. Popular Reporting

In addition to issuing a Comprehensive Annual Financial Report (CAFR) in conformity with
GAAP, the City may supplement its CAFR with a simpler, “popular” report designed to assist
those citizens who need or desire a less detailed overview of the City’s financial activities. This
report should be issued no later than six months after the close of the fiscal year.

C. Selection of Auditors

Every five years, the City shall request proposals from qualified firms, including the current
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