Page 41 - CityofMansfieldFY25Budget

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 FY 2024-2025. 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 Shared 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

At the end 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 monthly
report 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.

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