Page 67 - CityofEulessFY26AdoptedBudgetOrdinance2432

CITY OF EULESS
FISCAL POLICIES

I. INTRODUCTION

A. Purpose Statement — The City of Euless has an important responsibility to its citizens to carefully
account for public funds, to manage municipal finances wisely, and to plan for the adequate funding
of services desired by the public.
The overriding goal of the Fiscal Policies is to enable the City to achieve a long- term stable and positive
financial condition. The watchwords of the City's fiscal management include integrity, prudent
stewardship, planning, accountability, and full disclosure.
The purpose of the Fiscal Policies is to provide guidelines for the Director of Finance in planning and
directing the City's day to day financial affairs and in developing recommendations to the City Manager
and City Council. The scope of the policies spans accounting, auditing, financial reporting, internal
controls, operating and capital budgeting, revenue management, cash management, expenditure
control, and debt management.
B. Annual Review of Policies — These policies will be reviewed administratively by the Finance Director
and City Manager and will be presented to the City Council for approval of any significant changes.

11. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING

A. Accounting— The Director of Finance is the City's Chief Accountant and is responsible for establishing
the chart of accounts and for properly recording financial transactions.
B. Accounts Receivable — This asset account reflects amounts owed to the City from citizens, companies,
or other governmental entities. Delinquent accounts will be pursued.
C, External Auditing
1. The City will be audited annually by outside independent accountants ( auditors). The auditors
must be a CPA firm of national reputation and must demonstrate that they have the breadth
and depth of staff to conduct the City's audit in accordance with generally accepted auditing
standards and contractual requirements. The auditor' s report on the City' s financial
statements will be completed and submitted to City staff within 120 days of the City's fiscal
year end, and the auditor' s management letter will be presented to the City staff accordingly.
An interim management letter will be issued prior to this date if any materially significant
internal control weaknesses are discovered.
2. The Auditors are accountable 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
auditors consider such communication necessary to fulfill their legal and professional
responsibilities.
3. Auditor Rotation — The City will not require auditor rotation, but will circulate requests for
proposal for audit services at least every five years.

D. internal Auditing — The City recognizes the need for an internal audit function to provide independent,
unbiased and objective reviews and assessments of the business activities, operations, financial
systems and internal accounting controls of the City and some of its business partners. The reviews
and assessments are conducted in order to instill confidence to citizens and stakeholders that
resources are responsibly and effectively managed in order to achieve intended results. The City shall
devote resources, as available, to conduct operational, financial and performance audits, selected as
a result of risk analysis and assessment process. The internal audit function will report directly to the
City Manager' s Office.
External Financial Reporting — The City will prepare and publish an annual comprehensive financial
E.
report ( ACFR). The ACFR will be prepared in accordance with generally accepted accounting
principles and will be presented annually to the Government Finance Officers Association ( GFOA) for
evaluation and awarding of the Certificate of Achievement for Excellence in Financial Reporting. The

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Ordinance No. 2432, Page 67 of 474