11-12-12 Regular Meeting of La Porte City Council

Browse Search

Accounting standards The City shall establish and maintain accounting systems according to the generally accepted accounting principles and standards (GAAP) of the Governmental Finance Officers Associations (GFOA) and the Governmental Accounting Standards Board (GASB). The central system shall be used for financial transactions of all City departments. Internal Control The City is responsible for establishing and maintaining an internal control structure designed to provide reasonable, but not absolute, assurance that the assets of the City are protected from loss, theft, or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgments by management. Annual audit An annualaudit shall be performed by an independent accounting firm which will issue an official opinion on the annual financial statements with a management letter detailing areas that could be improved.The auditors must be a CPA firm that has the breadth and depth of staff to conduct the City’s audit in accordance with generally accepted auditing standards and contractual requirements. The auditors report on the City’s financial statements must be completed in sufficient time such that the Comprehensive Annual Financial Report (CAFR) may be presented to the City Council at the second Council meeting in March following the fiscal year end. External Financial Reporting The Accounting Department prepares and publishes a comprehensive annual financial report (CAFR). TheCAFR is the official annual report for the City and contains appropriate statements, schedules and other information for the major operations of the City and its component units. Also included is an official audit opinion,transmittalletter from management,management discussion and analysis, and information that provides continuing disclosure as required by SEC Rule 15c2-12. The CAFR is prepared in accordance with generally accepted accounting principals. The CAFR is published and presented tothe City Council on the second City Council meeting in Marchfollowing the fiscal year end. The CAFR is distributed to appropriate federal/state agencies, and other users, including but not limited to,students, other cities, bondholders, city staff, financial institutions, required information depositories, andothers. The Single Audit report is prepared and presented to grantors no later than nine months following the fiscalyear end. The Single Audit report lists the status and current operations of all federal/state and localfunding awarded and received. The Accounting Department distributes monthly reports that include schedules/statements that present interim results of operations and an executive summary. The Accounting Department prepares such other reports as are sufficient for management to plan, monitor,and control the City’s financial affairs. If delays will occur, the Director of Finance will notify CityManagement and City Council of the delay and the underlying reasons. GFOA Certificate of Achievement Award