4.8 SR 10-21-2024 - Laserfiche WebLink

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Financial Management Policies Page 15 loss control and loss financing decisions. The city will maintain an active Safety Committee comprised of city employees. The committee will periodically conduct educational safety and risk avoidance programs for all employees. The city will maintain the highest deductible amount, considering the relationship between cost and the city’s ability to sustain the loss. Accounting, Auditing, and Financial Reporting The city will establish and maintain the highest standard of accounting practices, in conformity with Generally Accepted Accounting Principles (GAAP) including the following: ▪Attempt to maintain the GFOA Certificate of Excelleance in Financial Reporting. ▪Arrange for an annual audit of all funds and account groups by and independent certified public accountants or by the Office of the State Auditor. ▪Provide monthly summary reports of financial activity by major type of funds as compared to budget. ▪Department Directors shall review departmental budgets monthly to ensure budgetary compliance and report all deficiencies immediately to the city administrator. Operating Budget ▪The city administrator shall annually propose a balanced budget to the City Council in which appropriations do not exceed the total of the estimated General Fund revenue and the fund balance available after applying the General Fund Reserve Policy. ▪In the event there is an unanticipated shortfall of revenues in a current year budget, the finance manager may recommend the use General Fund unreserved fund balance. ▪The budget will provide for adequate maintenance of buildings and equipment, and for their orderly replacement. ▪The finance manager will prepare monthly reports comparing actual revenues and expenditures to the budget. Significant variances will be summarized in writing to the city administrator and City Council. ▪The operating budget will describe the major goals to be achieved and the services and programs to be delivered for the level of funding provided. ▪Before adding a new program or service, the city will use a cost-benefit analysis of contractors versus in-house services. ▪Assests will not be sold or one-time accounting principle changes used to balance the budget for any fund. ▪Public input will be encouraged and public hearings held for budget setting deliberations each year. ▪Department directors are responsible for administration of their departmental operating budget. Budget adjustments must be submitted and approved before cost overruns occur. ▪Department directors may propose administrative budget amendments throughout the year to adjust line item budgets within their department as long as the total departmental budget does not change. Line item budget changes shall exclude personal service and capital outlay categories. Admendments must be requested in writing and approved by the city administrator and finance manger. Purchasing The goal of the Purchasing Policy is to ensure all purchases are consistent with Minnesota statutes, to establish internal controls, to ensure appropriate documentation, and the best value for the public money. Purchasing Authority Purchasing and budgetary control is the responsibility of each department/division manager. The department/division manager may designate the authority to make certain purchases to department staff in compliance with the annual budget. This designation must be communicated to the Finance Division. Final Page 67 of 294