Page 316 - CityofHasletFY25AnnualBudget

II. Accounting, Auditing and Financial Reporting

Accounting. The city is solely responsible for the reporting of its financial affairs,
both internally and externally. The Finance Director is the City’s Chief Fiscal Officer
and is responsible for establishing the Chart of Accounts and for properly recording
financial transactions.

Auditing. In conformance and according to the provision the Texas Local
Government Code, Title 4, Chapter 103. A municipality shall have its records and
accounts audited annually and shall have an annual financial statement prepared
based on the audit. The auditor must be registered as a partnership or corporation
of certified public accountants, holding a license under Article 41a1, Section 9, of the
Civil Statutes of Texas, capable of demonstrating that it has sufficient staff which will
enable it to conduct the City’s audit in accordance with generally accepted auditing
standards. The auditor’s report on the City’s financial statements will be completed
within 120 days of the City’s fiscal year end.

The auditor is retained by and is accountable directly to the City Council and will
have access to direct communication with the City Council if the City Staff is
unresponsive to auditor recommendations or if the auditor considers such
communication necessary to fulfill its legal and professional responsibilities.

The City will not require an auditor rotation; however, the Council may circulate
request for proposal for auditor services every three to five years.

Financial Reporting. The Finance Director will prepare internal financial reports
sufficient to plan, monitor, and control the City’s financial affairs. Internal reporting
objective are addressed throughout these policies.

III. Operating Budget Management

Budgetary Accounting Basis. The City’s accounting records for general
governmental operations are maintained on a modified accrual basis according to
Generally Accepted Accounting Principles (GAAP). The revenues are recorded
when actually received and expenditures are recorded when the liability is incurred.
Accounting records for the City’s utilities fund are maintained on a full accrual basis.
For example, expenditures are recognized when a liability is incurred, and revenues
are recognized when they are obligated to the City. Deprecation is budgeted as an
operating expense. Capital purchases for the propriety funds are listed in the budget
document in order that proposed purchases can be reviewed by the City council.
The budgetary accounting basis follows GAAP except that fund balance/retained
earnings are presented in the budget as a measure of available spendable
resources. Unexpended appropriations for budgeted funds lapse at fiscal year-end,

City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 314