Res 2006-035 - Laserfiche WebLink

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I D. Ratios/Trend Analysis-;- Ratios and significant balances will be incorporated into financial reports. This information will provid,e users with meaningful data to identify major trends of the City's finances through analytical procedures. We have selected the following ratioslbalances as key indicators: . Fund Balance: FB . Working Capital: CA - CL Current Ratio: CAlCL . Quick Ratio: CAlCL . Debt Ratio (%): I CL+LTL/TA Enterprise Operational Coverage: OR/OE Assets Less Liabilities AL (Acceptable level)>25.0% of Expenditures Current Assets Less Current Liabilities AL> 25.0% of Expenses Current Assets Divided By Current Liabilities AL> 1.00 "Liquid" Current Assets Divided By Current Liquid Liabilities AL> 1.00 Current Liabilities Plus Long Term Liabilities Divided By Total Assets AL< 1.00 Operating Revenue Divided By Operating Expense AL> 1.20 Our goal is to develop minimum/maximum levels for the ratioslbalances 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 I 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 - Revised April 2005 Page 19