FY23 FULL BUDGET REPORT ADOPTED

Fiscal Policies (Updated) The Townmaintains a number of financial andmanagement policies providing guiding principles and goals that will influence financial management practice of the Town of Morrisville, North Carolina as approved by the Town Council. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management for the purpose of: a) Contributing to the Town’s ability to insulate itself from fiscal crisis, b) Enhancing short-term & long-term financial credit ability by helping to achieve the highest credit and bond ratings possible, c) Promoting long-term financial stability by establishing clear & consistent guidelines, d) Directing attention to the total financial picture of the Town rather than single issue areas, e) Promoting the view of linking long-run financial planning with day-to-day operations, and f) Providing Town Council, citizenry, and professional management a framework for measuring the fiscal impacts of government services against established fiscal parameter & guidelines. Accounting & Financial Reporting The Town will establish and maintain an accounting system according to the North Carolina Local Budget and Fiscal Control Act, generally accepted accounting principles (GAAP), standard of the Governmental Accounting Standards Board (GASB), and the Government Finance Officers Association (GFOA). Annual Comprehensive Financial Report (ACFR): The Town’s ACFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Report Program. The financial statements should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. The report of the independent auditor will be included in the T own’s ACFR. The Long-range forecast is updated post audit with new historical information produced by the annual audit for the purposes of future forecasting analyses. Internal Controls: Financial systems will maintain internal controls to monitor revenues, expenditures, and program performance on an ongoing basis. Fiscal Monitoring: Quarterly financial reports will present actual expenditures vs. budget on a monthly and cumulative basis and will be provided to Town Council and posted on the website. Major revenue sources will be monitored on a monthly basis, noting the status of each revenue as compared to budget. Expenditures will be monitored on a monthly basis. Basis of Accounting: For financial reporting purposes, the governmental funds use the modified accrual basis of accounting, under which revenues considered to be both measurable and available for funding current appropriations are recognized when earned. All other revenues are recognized when received in cash, except that Note: The Town maintains a number of internal policies defining procedural internal controls. The Town Manager approves such policies.

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