Resolution 12260006.90000
WSS/gjz
4/1/10
RESOLUTION NO. 1226
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDMONDS, WASHINGTON, ADOPTING A FINANCIAL
POLICY.
WHEREAS, the City of Edmonds is committed to the highest standards of
responsible financial management, and
WHEREAS, the City, including the City Council, Mayor and staff, are committed
to working together to ensure that all financial matters of the City are addressed with care,
integrity and in the best interests of the City, now, therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON,
HEREBY RESOLVES AS FOLLOWS:
Section 1. The rules and procedures contained in this section are designed to:
A. Protect the assets of the City of Edmonds and provide a
financial base sufficient to sustain municipal services to maintain
the social well being and physical condition of the City;
B. Ensure that the accounting system will maintain records on
a basis consistent and in compliance with federal, state, local legal
and reporting requirements;
C. Ensure the maintenance of open and accurate financial
records. These financial records maintained in the form
established by the State Auditor will be labeled properly
(unaudited and date). Reports will be submitted to the City
Council by the Finance Director and will be labeled clearly such
as: monthly and/or quarterly and fiscal year ending. Such
summary financial reports are to be labeled to reflect the financial
activity of major types of funds and those related to major funds.
D. Ensure the public has financial information available on the
City's website under the Finance area at a minimum after the
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monthly finance meeting has transpired. The information to be
provided is set forth in Chapter 3.04 ECC. Availability of and
ensuring that the reports are available to the public in a timely
manner will be a responsibility of the Mayor.
E. Provide a means for the City Council to update and monitor
these policies with the assistance and cooperation of the Mayor's
office and the Director of Finance and Information Services.
F. The form and content of City financial reporting documents
and financial records is established by the State Auditor. These
policies shall be interpreted to comply with the requirements
established by the State Auditor, and in the event of conflict, the
State Auditor's requirements shall control.
Section 2. Accounting Records and Reports.
1. Basis of Accounting Basis of accounting refers to the point
at which revenues or expenditures are recognized in the accounts
and reported in the financial statements. The government -wide
financial statements, as well as the financial statements for
proprietary and fiduciary funds are reported using the economic
resources measurement focus and the modified accrual basis of
accounting. Under the modified accrual basis of accounting,
revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the when the cash is
received.
Under the modified accrual basis of accounting, revenues are
recognized as soon as they become both measurable and available,
and expenditures are recorded in the period that the expenditure
occurs and becomes a liability. In the case of Federal and State
grants, the grant revenues are recorded and a receivable is
established when eligible expenditures are incurred. In the event
that a different accrual basis is utilized, a disclosure will be made
as to the reasoning for this method of accounting.
The City's Comprehensive Annual Financial Report (CAFR) on its
financial activity shall be presented in compliance with Generally
Accepted Accounting Principles (GAAP) as defined by the
Governmental Accounting Standards Board (GASB) and
Washington State Auditor's Office.
2. Basis of Budgeting. The basis of budgeting differs from
the basis of accounting only by the assumptions that are made in
regards to the timing of the recognition of revenue and
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expenditures. The budget assumes that all revenues and
expenditures, as well as associated cash, will be expended or
received during the biennium. Conversely, the basis of accounting
only recognizes revenues when they become both measurable and
available. Cash is not necessarily received or expended at the
same time.
3. Audit. City financial records are audited annually by the
State Auditor. The Auditor's annual report is a public document
and shall be made available on the City's web site.
RESOLVED this 6th day of April, 2010.
APPROV
MAY R, GO
Y HAAKENSON
ATTEST/AUTHENTICATED :
ITY CLERK, SANDRA S. CHASE
FILED WITH THE CITY CLERK: 04-02-2010
PASSED BY THE CITY COUNCIL: 04-06-2010
RESOLUTION NO. 1226
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