Page 41 - CityofMansfieldFY24Budget

FINANCIAL REPORTING AND POLICIES

FINANCIAL AND OPERATIONAL POLICIES

The City of Mansfield, Texas has developed financial and operational policies which guided the
development of the budget for fiscal year 2023-2024. The budget has been developed using an analysis of
historical data, current data and forecasted data. The staff identified areas of growth and future needs in
each department. The staff put in place policies and procedures which determine the overall budget
including expected population growth, expansion of services, debt service requirements, capital
improvements, operational maintenance requirements, and staffing level requirements. Each department is
evaluated as to current needs and the projected needs in the next budget year and the following nine years.
Availability of funds is considered to determine what areas may need additional funding. A complete prior
year analysis and future analysis is utilized to determine what areas may be increased, decreased, or remain
constant for the upcoming year. Individual departments are required to submit departmental budgets for the
upcoming fiscal year. The Business Services Department reviews individual budgets and creates a priority
list for each department based on department and administration considerations. The budget for each
department is reviewed by the City Manager's office to ensure each department is properly funded. The
budget’s operational and financial policies are reviewed throughout the year.

FINANCIAL REPORTING POLICY

Following the conclusion of the fiscal year, the Accounting Department prepares an Annual Comprehensive
Financial Report (ACFR) in accordance with generally accepted accounting and financial reporting
principles established by the Governmental Accounting Standards Board (GASB) and the SEC. The ACFR
shall also satisfy all criteria of the Government Finance Officers Association’s Certificate of Achievement
for Excellence in Financial Reporting. Monthly, semiannual, and quarterly reports on the City’s finances
are reported to City Council.

The ACFR shall show the status of the City’s finances on the basis of General Accepted Accounting
Principles (GAAP). The ACFR shall show fund revenues and expenditures on both a GAAP basis and
budget basis for comparison purposes. In all but two cases, this reporting conforms to the way the City
prepares its budget: compensated absences (accrued but unused sick leave) are not reflected in the budget
but are accounted for in the ACFR’s long-term debt position; and depreciation is not shown in the budget’s
proprietary funds, although the full purchase price of equipment and capital improvements is reflected as
uses of working capital.

Included as part of the Annual Financial Report are the results of the annual audit prepared by independent
Certified Public Accountants designated by City Council. The Finance Department shall issue a report
monthly to the Council reflecting the City’s financial condition for the month. The monthly report shall
present the financial condition of the City in a user friendly and understandable format consistent with the
budget.

REVENUE POLICIES

To protect the City’s financial integrity, the City will maintain a diversified and stable revenue system to
shelter it from fluctuations in any one revenue source.

For every annual budget, the City shall levy two property tax rates: operation/maintenance and debt service.
The debt service levy shall be sufficient for meeting all current principal and interest payments.

41