FINANCIAL POLICIES
The City shall aggressively pursue all grant opportunities; however, before accepting grants, the City will consider the current and future implications of both accepting and rejecting the monies, including: (1) the amount of matching funds required; (2) in-kind services to be provided; (3) requirements for reporting, earmarking and level of effort requirements; (4) the related operating expenses; and (5) length of grant and consequential disposition of service (i.e., is the City obliged to continue the services after the grant has ended). Gifts and donations will be evaluated to determine what, if any, obligations are to be placed upon the City. Gifts and bequests will be considered as “over and above” basic Cit y appropriations. Gifts, donations and/or bequests given to the City for the use of any of its departments or divisions and accepted shall be solely for the purpose intended by the donor. Unrestricted gifts will be expended on the recommendation of the related commission or other advisory board. Basis of Accounting & Budget Basis of accounting refers to the timing of revenue and expenditure recognition for budgeting and financial reporting. The City’s financial statements and accounting records are maintai ned in accordance with the recommendations of the Governmental Accounting Standards Board (GASB). Government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met. Budget development and budget adjustments utilize these same revenue and expenditure recognition timing policies and practices. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Direct expenses have not been eliminated from the functional categories; indirect expenses and internal payments have been eliminated. A carefully designed system of internal accounting controls is in operation at all times. These controls are designed to provide reasonable, but not absolute, assurances that safeguard assets against loss from unauthorized use or disposition and to ensure the reliability of financial records used in the preparation of financial statements. The concept of reasonable assurance recognizes the cost of a control should not exceed the benefit. The evaluation of costs and benefits likely to be derived require estimates and judgments by management. An independent, certified public accounting firm reviews the City’s financial accounting processes, practices and records annually. Budgetary Control The City’s level of budgetary control is at the department level for the General Fund and the Great Park Fund, and at the individual fund level for all other funds. In overseeing the City’s General Fund budget, a department wants to exceed their budget, they must request approval from the City Manager and notify the Administrative Services Department. The level of budgetary control for the Great Park Funds, in accordance with the Great Park Fiscal Transparency and Reforms Act approved by voters on November 4, 2014, is at the department level. Department must request approval from the Great Park Board to exceed their Great park department budget.
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FY 2023-25 Adopted Budget
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