Res 2008-123 - Laserfiche WebLink

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D. Ratios/Trend Analysis - Ratios and significant balances will be incorporated into financial reports. This information will provide users with meaningful data to identify maj or trends of the City's finances through analytical procedures. We have selected the following ratios/balances as key indicators: • Fund Balance: Assets Less Liabilities FB AL (Acceptable level)>25.0% of Expenditures • Working Capital: Current Assets Less Current Liabilities CA - CL AL > 25.0% of Expenses • Current Ratio: Current Assets Divided By Current Liabilities CA/CL AL> 1.00 • Quick Ratio: "Liquid" Current Assets Divided By Current Liquid Liabilities CA/CL AL > 1.00 • Debt Ratio (%): Current Liabilities Plus Long Term Liabilities Divided By Total Assets CL+LTL/TA AL< 1.00 • Enterprise Operational Operating Revenue Divided By Operating Coverage: Expense OR/OE AL > 1.20 Our goal is to develop minimum/maximum levels for the ratios/balances above through analyzing the City's historical trends and anticipated future trends. We will also analyze and compare the City to other municipalities to develop these acceptable levels. XIII. INTERNAL CONTROLS A. Written Procedures -Wherever possible, the Director of Finance will establish and maintain written procedures for all functions involving cash handling and/or accounting throughout the city. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement. B. Department Directors' Responsibilities -Each Department Director is responsible to ensure that good internal controls are followed throughout their Department, that all City Finance Department directives or internal control recommendations are implemented, and that all independent auditor recommendations are addressed. City of San Marcos Financial Policy -Proposed Sept 2008 Page 20