GFOASC 2018 Fall Conference Local Government Do’s and Don’ts

Session Overview Financial Monitoring Financial Statement Preparation Budget Preparation Financial Monitoring Financial Statement Preparation Other Issues Questions and Answers – It’s Your Turn…

Budget Preparation Start early Drag your feet Discuss revenue opportunities early Operate in a vacuum Project revenue realistically Over (or under) project revenue Budget personnel costs Make departments figure it out Budget personnel costs at 100% Budget for “salary savings”

Budget Preparation Have budget kickoff meeting early Just send stuff out without meeting Include multi-column/year presentation in budget book Present only one column/year Prepare complete budget book for first reading Present executive summary with very little information Prepare balanced budget Let CAO and Council figure it out Communicate with departments Surprise them after final reading

Financial Monitoring Prepare monthly financial report for Council Keep everything a secret Distribute monthly budget status to departments Don’t let them know how they are doing Monitor “straight line” spending Let them spend all their money up front Delay capital expenditures Buy everything the first day of the fiscal year Monitor cash balance monthly over multiple years Gradually run out of money

Financial Monitoring Adopt fund balance policy Don’t worry about it (or set it too high) Prepare and distribute payroll analysis report Forget about 2.5 hour gap Distribute other information – cell bills, fuel usage, etc. Leave yourself open for fraud (and public shame) Ensure state required reports are filed timely DSS reports – quarterly and annual TERC report – annual Annual financial statements to various state agencies Suffer the consequences

Financial Statement Preparation Prepare a CAFR Stick with general purpose statements – it’s so much easier Apply to receive GFOA Certificate of Achievement Don’t get recognized for all your hard work Prepare GASB (#77 and others) note disclosures Rely on others and hope they get it right File audited statements in accordance with bond covenants Let your bond rating slip Push back against external auditors Let them control the process

Other Issues Stay out of politics Run for office Be a resource Mind your own business – “It’s not my job…” Get involved/serve Shut your door and never come out Keep learning Get comfortable Help the next one in line Look out just for yourself

Questions & Answers It’s Your Turn…