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SECTION2:FINANCIALMANAGEMENT <br />A.PolicyOverview <br />TheCityFinanceDepartmentstrivestomaintainahighlevelofexcellenceinitspoliciesandprocedures. <br />Thedefinitionsofthe QualitativeCharacteristicsofAccountingInformation essentialtosoundfinancial <br />reportingareprovidedinthe Appendix.TheComprehensiveAnnualFinancial <br />Report(CAFR)andbudgetarepresentedannuallytotheGovernmentalFinanceOfficersAssociation <br />forevaluationandconsiderationfortheCertificateofAchievementforExcellenceinFinancialReporting <br />andtheDistinguishedBudgetPresentationAward. <br />Inestablishingafinancialmanagementsystem,SanMarcoshascompliedwiththerequirementsof2CFR <br />§200.302ofthe UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederal <br />Awards(UAR)whichsupersedes24CFRParts84and85andOMBCircularsA87,122andA133. <br />TheCityofSanMarcosunderstandsthatfailuretoaccountforandmanageCDBGDRfundsinaccordance <br />withfederalrequirementsmayresultinU.S.DepartmentofHousingandUrbanDevelopment(HUD) <br />sanctionsuptoandincludingterminationoftheFederalaward. <br />CitystaffalreadyhaveexperiencewithmonitoringtheexpendituresofitsCDBGprograms.Withthe/źƷǤ͸ƭ <br />currentallocationofCDBGfunds,thePlanningDepartment,CommunityInitiativesDivision,maintains <br />detailedrecordsmonitoringtheexpenditureoffundsandprojectschedules.TheCityusesTyler <br />TechnologiesMunisFinancialSystemasitsenterprisefinancialsoftware,annualbudgetperformance <br />measuresandseveralprojectmanagementapplicationsincludingMicrosoftProject,Accessand <br />BaseCamptomanagecomplexprojects,expendituresandmilestones. <br />TheFinance&AuditsubcommitteeoftheCityCouncil,asapartofitsadoptedcitywideFinancialPolicy, <br />monitorsquarterlyexpendituresofallmajorfundcategories.However,duetotheenormityoftheCDBG <br />DRgranttotheCity,theCitywilladaptandenhanceitscurrentprocessesbyestablishingstandardtracking <br />mechanisms,processesandtemplatestoensureconsistencyandcontinuityamongprogramactivities. <br />TheCityofSanMarcoswillalsomaximizeitsuseoftechnologytosupportandaugmentanystandard <br />processesinstitutedtoensuretimelyexpenditureoffundsduringtheperiodofperformanceThissection <br />providesanoverviewofthe/źƷǤ͸ƭfinancialpolicyanddetailsproceduresutilizedtomaximizecompliance, <br />controlandefficiencyinthemanagementofCDBGDRGrantfunds. <br />Specificallytheobjectivesofthepolicyareto;a)ensurefairpresentationandfulldisclosureofthefinancial <br />positionandresultsofthefinancialoperationsoftheCityinconformitywithgenerallyaccepted <br />accountingprinciples(GAAP)and;b)determineanddemonstratecompliancewithfinancerelatedlegal <br />andcontractualissuesinaccordancewithprovisionsoftheCity'sCharter,theCity'sCodeofOrdinances, <br />theTexasLocalGovernmentCodeandotherStateandFederalmandates. <br />B.ExpenditurePolicies <br />Thepointofbudgetarycontrolisatthedepartmentlevelbudgetforallfunds.Following <br />1.Appropriations <br />formaladoption,thebudgetisamendedoradjustedasnecessary. <br />a)AmendmentAnamendmentinvolvesincreasingthetotalexpendituresoffundsoverthe <br />originaladoptedbudgetorchangestothetotalapprovedFTEcount.Thebudgetisamended <br />throughasubmissionmadebyaDepartmentDirectortotheCityManager.TheDepartment <br />Directorpreparesabudgetamendmentdetailingthereason,lineitemsandamountstobe <br />effected.TheamendmentisapprovedbytheCityFinanceDepartmentafterverificationof <br />CITYOFSANMARCOSCDBGDRFINANCIALPOLICIES&PROCEDURESMANAUAL4|P <br />AGE <br /> <br />