Admin 200- hard test

Financial Policy

• A financial policy is a set of guidelines for the management of funds or financial resources.
• It provides for the effective planning of government expenditures, revenues, and the financing of public services.
• It helps ensure that the County is financially able to meet its short-term and long-term service objectives.

Scope

• The County prepares its annual budget in accordance with Chapters 129 and 200 of Florida Statutes.
• The budget is prepared on a basis consistent with Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards (GAS), and the Government Finance Officers Association (GFOA) standards for the Distinguished Budget Presentation Award.

Financial Planning Policy

• The County will balance the financial burden of programs and facilities as fairly as possible between the general taxpayer and those who benefit directly.
• The County will recognize the common good that flows from many public expenditures, the inability of some citizens to pay the full costs of certain benefits, and the difficulty of measuring the relationship between public costs and public or private benefits of some services.

Budget Policy

• The budget will be balanced upon adoption by the Board of County Commissioners.
• Total revenues, including inter-fund transfers and fund balances brought forward, will equal the total of fund appropriations or expenditures and reserves.
• Revenues will include a 5% statutory reduction in accordance with Chapter 129.01(2)(b) of Florida Statutes.
• The County’s Office of Management and Budget will prepare a report at mid-year comparing actual and budgeted revenue and expenditures for all operating funds and their projections through year-end.

Long-Range Planning

• The County will prepare a multiyear forecast of financial operations based on the service levels contemplated in the proposed budget and any probable future service level changes.
• The County will analyze and project major revenues and expenditures by fund.
• The County will develop a five-year plan for major capital improvement projects (CIP) and present it annually to the County Commission.

Audit

• The County will ensure the conduct of a timely annual audit of its financial records in accordance with State law and governmental auditing standards.
• The County will achieve an unqualified audit opinion in full compliance with Generally Accepted Accounting Principles (GAAP).

Asset Inventory

• The County will annually identify and assess the condition of its capital assets.
• The assessment will include an evaluation of community needs and priorities, the impact of any deferred maintenance, changes in technology, and any other significant factors.

Revenue Policy

• Revenue from ad valorem or property taxes will be anticipated for purposes of the operating budget preparation using 100% of the reported total taxable value of current property assessments.
• All sales tax received will be limited to the General Fund unless required for debt service.
• The allocation of sales tax revenue will be in accordance with provisions of Florida Statute 218.65 and the direction of the County Commission.

Revenue Diversification

• The County recognizes the value of diversity in revenue sources for funding County services.
• The County will develop alternative funding sources other than property taxes.

Fees and Charges

• The County Commission will review and adjust fees and charges for service and adopt them as part of the annual budget process.
• Fees and charges will be charged against new development at the building permit stage.

Use of One-time Revenues

• The County will use one-time or non-recurring revenues only for one-time expenditures (i.e., capital projects).

Use of Unpredictable Revenues

• The County will budget unpredictable revenues more conservatively with emphasis on a safe minimum level that will most likely be generated.

Expenditure Policy

• The County will seek to provide total employee compensation (pay plus employee benefits) that is competitive within its labor market.
• The County will balance the stewardship of public funds with employee equity and the minimization of employee turnover.

Debt Policy

• The County will issue debt only for the purposes of constructing or acquiring capital improvements, for making major renovations to existing capital improvements, for acquiring environmentally sensitive lands, and for refunding outstanding debt when sufficient cost savings can be realized or it is advantageous to do so.
• The County will manage its debt and sustain its financial position in order to seek and maintain the highest credit rating possible.

Debt Issuance and Management Guidelines

• Capital improvements related to Enterprise Fund operations should be financed solely by debt to be repaid from user fees and charges and other available revenue generated from operations of the respective Enterprise fund.
• The County will issue debt only for the purposes specified in the debt policy.
• The County will manage its debt and sustain its financial position in order to seek and maintain the highest credit rating possible.

Legal Debt Limit

• There is no legal debt limit for the County.

Reserve or Stabilization Accounts and Fund Balance Targets

• A reserve for contingencies complying with Florida Statutes 129.01(2) (c) shall be maintained to protect against unforeseen cash flow shortages, emergencies, and unexpected economic downturns.

Basis of Accounting

• The accounts of the County are organized on the basis of funds and account groups, each of which is considered a separate accounting entity.
• The operation of each fund is accounted for with a separate set of self-balancing accounts that comprises its assets, liabilities, fund equity, revenue, and expenditures.

Basis of Budgeting

• Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all funds.
• Actual spending cannot legally exceed the budgeted amount.

Expenditure Accountability

• All expenditures will be maintained by a detailed line item based upon a chart of accounts that provides for uniformity of reporting and is consistent with the Uniform Chart of Accounts established by the State of Florida and generally accepted accounting principles (GAAP).

• The operating budget will be appropriated at the major account levels of personal services, operating expense, capital outlay, grants-in-aid, debt service, and non-operating expense.### County Policy and Procedures

• The County's purchasing policy is established under the "St. Johns County Purchasing Policy and Procedures."

• Expenses will be charged against restricted revenue sources whenever possible.

• The County seeks expenditure reductions through efficiencies, technology, productivity improvements, reorganization, outsourcing, or privatization of services.

• The Finance Department determines the necessity of pre-paying certain expenditures, subject to Board approval where necessary.

Budget Preparation and Review

• The budget will emphasize the link between fiscal and management (operations) planning.
• The budget will include descriptions of each program's responsibilities, historical summaries of costs, previous year's accomplishments, and key objectives with quantifiable performance measurements.

Fleet Management and Replacement

• A County Fleet Replacement Policy addresses fleet management, acquisition, and replacement, including the optimum replacement point.

Internal Service Funds and Budget Control

• Internal Service Funds aim to break even, with profits used to lower internal service charges in the ensuing fiscal year.
• Losses will be disposed of by crediting or charging billed departments according to their usage.
• The Annual Operating Budget serves as the legal authorization for expenditures and financing.

Budget Amendments and Transfers

• The County Budget Officer can approve internal or intra-department budget amendments or transfers without changing the total appropriation of the department.
• The County Administrator reviews and approves all budget requests, including those for new programs, travel, contractual services, additional personnel, new vehicles, capital outlay, and computer hardware and software.

Budget Administration and Review

• The County Administrator, County Budget Officer, and Clerk of Courts provide recommendations to update the Financial Policy as needed.
• The Financial Policy undergoes annual review and modifications as deemed necessary.

Learn about financial policies and their role in effective planning of government expenditures, revenues, and financing of public services. Understand how it helps in achieving short-term and long-term service objectives.