Page 320 - Southlake FY24 Budget

Financial Policies

Introduction

The City of Southlake’s financial policies and charter provisions set forth the basic framework for the fiscal
management of the City. The policies below were developed within the parameters established by the
applicable provisions of the Texas Local Government Code and the City of Southlake Charter. Excerpts
from the Charter follow the policy portion of this section.

City of Southlake
Statement of Financial Principles
Appendix

Accounting, Budgeting, and Financial Planning
- The City will establish accounting practices that conform to generally accepted accounting principles as
set forth by the Governmental Accounting Standards Board.

- An independent certified public accounting firm will perform an annual audit and an official comprehen-
sive annual financial report (CAFR) shall be issued no later than 6 months following year-end.

- The independent certified public accounting firm shall provide a management letter, if one is issued, no
later than March 31 following the end of the fiscal year.

- The City shall submit the CAFR to the Government Finance Officers Association (GFOA) for the pur-
pose of earning the Certificate of Achievement for Excellences in Financial Reporting.

- The City shall prepare an Annual Operating Budget and submit it for City Council approval prior to Sep-
tember 30.

- The Annual Operating Budget shall be prepared such that current revenues plus net operating transfers
will be sufficient to support current expenditures.

- Expenditures from all operating funds shall not exceed the budgeted appropriations (as amended) for
these funds.

- An adequate level of maintenance and replacement will be funded each year to ensure that all capital
facilities and equipment are properly maintained.

- Charges for services and other revenues will be annually examined and adjusted as deemed necessary
to respond to cost increases or any other changing circumstances.
- A three-year financial forecast shall be prepared annually projecting revenues and expenditures for all
operating funds. This forecast shall be used as a planning tool in developing the following year’s operat-
ing budget.

320 FY 2024 City of Southlake | Budget Book