Financial policies

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 Financial Report is published by the City within six months of the fiscal year-end as required by the Office of the Minnesota State Auditor. The ACFR 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 money and the investment thereof shall be regarded as its highest public trust. The Investment Policy of the City defines the parameters within which money is invested. The policy establishes the framework for the City’s investment program to ensure effective and judicious investment of money in the City’s custody. The Policy is intended to be broad enough to allow designated investing officials 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 funds. The complete current Investment Policy and Strategy, approved by the City Council is available at: http://lims.minneapolismn.gov/file/2016-01481

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.