FY23 FULL BUDGET REPORT ADOPTED

revenues of material amounts that have not been received at the normal time of receipt are accrued, and any revenues in advance are deferred. Expenditures are recorded at the time liabilities are incurred except for principal and interest on general long-term debt, claims and judgments, and compensated absences which are recognized as expenditures when paid.

Proprietary funds use the accrual basis of accounting under which revenues are recognized when earned, and expenses are recorded when liabilities are incurred.

Basis of Budgeting: The Town prepares and adopts annually a budget using the modified accrual basis whereby revenues are recognized when measurable and available, and expenditures are recognized when liability is incurred. Expenditures may not legally exceed appropriations at the departmental level for all annually budgeted funds. Cash Management Policy The purpose of the Town’s Cash Management Policy is to provide guidelines to maximize the use of public moneys in the best interest of the public. Receipts: Cash receipts will be collected as expediently as reasonably possible to provide secure handling of incoming cash and to move these moneys into interest bearing accounts and investments. All incoming funds will be deposited daily as required by North Carolina General Statute 159-32 which states that all moneys collected on hand that amount to $500 or greater shall be deposited. Deposits will bemade in such a manner as to receive credit for that day’s interest. Cash Disbursements: The Town’s objective is to retain moneys for investment for the longest appropriate period of time. Disbursements will be made shortly in advance of or on the agreed-upon contractual date of payment unless earlier payment provides a greater economic benefit to the Town. All checks require (2) signatures: Finance Director, Assistant Town Manager, or Town Manager. The use of electronic signature is authorized by Town Council. Banking Relations: Banking service providers will be evaluated and selected through a competitive proposal process. Town Council will review the banking relationship at least every five years. The Town will maintain a minimum number of bank accounts to facilitate the movement and investment of funds. Collateralization for deposits will be in accordance with Title 20, Chapter 7 of the North Carolina Administrative Code. Capital Investment Program (CIP) Policy The purpose of the Town’s Capital Investment Program (CIP) Policy is to provide guidelines to establish sound long-term investment expectations and provide direction for staff to create a usable funding plan that delivers tangible results. The CIP will span a 5-year planning period. Types of Projects: The type of Projects to be included in the CIP will be determined using the following benchmarks:

Useful life greater than 5-years

•

• Cost value threshold greater than $100,000 • Project characteristics:

114