Financial policies
Accounting and investment
6. Accounting policies
The objective of the accounting policies is to ensure that all financial transactions of the City and its boards, commissions, and agencies conform to federal and state laws and regulations and generally accepted accounting principles (GAAP).
6.1 Accounting standards
The City shall establish and maintain a central accounting system according to GAAP, which are set by the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The central system shall be used for financial transactions of all City departments, boards, and independent agencies.
6.2 Disclosure and monitoring
Full disclosure is provided in all financial statements and bond representations. Financial systems are maintained to monitor all financial activity on a daily, monthly, and year-end basis. An Annual Comprehensive is published by the City within six months of the fiscal year-end as required by the Office of the Minnesota State Auditor. The CAFR shall be published on the City’s website.
7. Investment policies
7.1 Investment policy and strategy
It is the policy of the City that the administration of its funds and the investment of those funds shall be regarded as its highest public trust. The Investment Policy of the City defines the parameters within which funds are invested. The policy establishes the framework for the City’s investment program to ensure effective and judicious investment of the City’s funds. The Policy is intended to be broad enough to allow investment officer(s) to function properly within the parameters of responsibility and authority, flexible enough to address changing market conditions, and specific enough to safeguard investment assets. The receipt of a market rate of return is secondary to the requirements for safety and liquidity. The earnings from investments are used in a manner that best serves the interests of the City and its various specialized funds.
For more, view the complete current Investment Policy and Strategy, approved by the City Council.
7.2 Depositories
The Finance Officer is authorized to designate current City depositories pursuant to Chapter 118A and the City’s investment policy. A list of eligible depositories shall be subject to a Council-approved request for proposals process no less than every five years.