1. Multi-Year Budgeting

3. Government Finance Officers Association Objectives/Advantages of 2 Yr. Budget 1.Greater emphasis on management and service delivery 2.Greater emphasis on program evaluation and monitoring 3.Improved long-term planning 4.Relocation of human resources to activities other than budget preparation 5.Reduction in staff time spent on budget development

5. Disadvantages of 2 Yr. Budget 1.Unstable economy that wasn’t forecast as a downturn cycle 2.large changes in top sales tax producers by the arrival in or the departure from the City 3.Ongoing economic and environmental changes 4.Need to incorporate new policies and processes for staff to make the two year budget function seamlessly.

6. Survey of 87 Other Cities/Districts 68% are on a one-year budget cycle 32% are on a two-year budget cycle Cities in the area with two-year budget cycles include Bellflower, Torrance, Santa Monica, Laguna Hills, Mission Viejo, Stanton, and Westminster to name a few. San Luis Obispo has been producing a two year budget for 30 years now

7.  Direction from the City Council concerning the implementation of a two-year budget cycle Recommendation

8. Audit Committees

9. Functions of an Audit Committee The responsibilities of the audit committee should be specific and might include:  Interviewing and selecting the auditor  Approving the audit scope  Overseeing management’s implementation of internal controls  reviewing and approving the financial statements and accounting and financial reporting policies.

10. All audit committee members should be members of the governing body for two principal reasons: – First, one of the core responsibilities of the elected legislative branch of government, is to oversee the executive, or management branch – Second, the credibility of the audit committee will depend its authority Government Finance Officers Association Guidance on Audit Committees Membership

11. ESTABLISHING AN AUDIT COMMITTEE Establish Bylaws and Mission Membership of the Audit Committee Member Experience and Skills Size and Term of Audit Committee Members Meetings – When will Audit Committee Meet

12. Survey of 123 Other Cities/Districts 38 out of 123 had an audit committee, or 31%

13. Direction from the City Council concerning the formation of an audit committee Recommendation