12-16-2020 Council Packet - Laserfiche WebLink

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Page 2 General Accounting and Financial Management It is the policy of the city to comply with all statutory, regulatory, and contractual requirements in the conduct of, and accounting for, its financial operations. The official books of record for the city will be maintained subject to the following provisions: 1. The city will account for its operations in accordance with the Generally Accepted Accounting Principles (GAAP) applicable to local units of government. 2. The city will comply with all applicable circulars issued by the Office of Management and Budget (OMB), including, but not limited to: a. OMB Circular A-87 – Cost Principles for States, Local and Indian Tribal Governments. b. OMB UGG - Uniform Grant Guidance – Audits of States, Local Governments, and Non-Profit Organizations (the Single Audit Act). 3. The city will comply with all contractual requirements detailed in its duly executed grant agreements with awarding agencies. 4. The city will contract annually with an independent CPA firm for the purposes of conducting the city’s external financial audit. To the extent that the city has expended federal awards in excess of the applicable single audit limit (currently $750,000), the city will have a single audit performed in accordance with OMB UGG - Uniform Grant Guidance. 5. To ensure continuing compliance with all applicable accounting requirements, the city may, at its discretion, contract with a CPA firm to provide internal auditing and/or consulting services. 6. The Finance Director shall be responsible for the maintenance of all accounting and finan cial records (including journals, timesheets, bank statements, audit reports, and similar documents). Such records shall be retained as required by contractual or regulatory requirements. The city has adopted the state’s records retention schedule as its official guide for records storage, filing, and destruction. 7. The city and employees are required to comply with the city’s conflict of interest policy and report any potential conflicts of interest to their managers. No employee, officer or agent may participate in the selection, award or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such violations may result in appropriate discipline. See also the city policies on conflict of interest located in the city’s Personnel Policies and Procedures. 8. The city will request prior approval from federal agencies for program or budget changes. 9. Procedures for inventory of federal capital purchases will be maintained by the Finance Department, with the help of the Public Works Director, and all items will be tracked annually. 10. The Finance Director (or designee) or the City Administrator are required to certify expenditures. Purchasing and Procurement It is the policy of the city to ensure that all disbursements of city funds are properly reviewed and authorized, and consistent with sound financial management principles, and made in compliance with all applicable federal, state and local laws. In order to meet these objectives, all disbursements of city funds shall be subject to the following provisions, to the extent that they do not conflict with or contradict with any specific federal, state or local law or Council policies (the most specific or restrictive law, policy or procedure will be followed):