Title
Discussion of issues relating to City's Financial Management Policy.
Body
Summary: The City's Financial Management Policy was last reviewed and updated on September 15, 2015. As a result of this year's annual review of the policy, the section relative to monitoring of capital assets has been revised as mandated by the Department of Justice in response to an audit related to grant funding:
Section VII -Capital Expenditures and Improvements
Revised Item E, Monitoring, to add that the City will complete a physical inventory of capital assets at least every two years. The Finance Department shall reconcile the inventory of capital assets to the capital asset listing. The policy was also revised to clarify that the capital asset records will be retained by the Finance Department in accordance with the City’s records retention schedule.
This section of the policy now reads as follows:
In order to track the existence, condition, and retirement or disposal of capital assets, the Finance Department shall utilize various methods to monitor the City's capital assets. A capital asset listing shall be sent to each department head for review near the end of each fiscal year in order to determine if the asset is still in service, impaired or obsolete. The Finance Department shall perform a periodic review of capital assets to verify the asset is still functional and in use. At least every two years, the City shall complete a physical inventory of capital assets and a reconciliation to the capital asset listing. Capital asset records shall be retained by the Finance Department in accordance with the City’s records retention schedule.
Fiscal/Budgetary Impact:
N/A.
Recommended action
Discussion only. Action will be taken during the regular meeting.