National League of Cities

Carol Phillips Member Warren, Averett, Kimbrough & Marino, LLC Certified Public Accountant Certified Fraud Examiner Over 24 years of public accounting experience Extensive experience in not-for-profit and governmental audits, including OMB Circular A-133 compliance audits

 We’ve heard about a lot of new items that might have a significant impact on municipalities  Some of these changes might happen; some might not  Steps you can take in the meantime to be prepared, no matter what happens Panel Discussion Wrap-Up

Balance the Budget Expenditures Revenue

Spending Policy  Traditionally used by Foundations and Colleges/Universities  Could adapt to municipality by setting a multi-year rolling average of revenue as the spending amount  Accomplishes stable spending while saving for a rainy day

 Municipalities must have strong internal control systems in place (both manual and computerized) to track financial activity.  Get the information you need to make good decisions and make sure you understand what you are given.  ALWAYS ask the second question – Why?  When you ask how something works, ask “Why?” Internal Controls

If Tax Reform Causes Change Replace lost revenue streams – not so easy! Increase economic development Work with other local governments

Technology - Moving in the Right Direction

Financial Integrity Require it! Ask questions if you don’t understand what you read/hear.