A GFOA Best Practice identifies specific policies and procedures as contributing to improved government management. It aims to promote and facilitate positive change rather than merely to codify current accepted practice. Partial implementation is encouraged as progress toward a recognized goal. A GFOA Advisory identifies specific policies and procedures necessary to minimize a governments exposure to potential loss in connection with its financial management activities. It is not to be interpreted as GFOA sanctioning the underlying activity that gives rise to the exposure.
Because actuarial information directly affects the funded level and sustainability of pension plans, the GFOA developed this new best practice to urge pension plan fiduciaries to take appropriate steps to ensure that all information provided to the actuary is accurate and up to date. The best practice also provides guidance on how to engage actuaries and additional services that finance officers should consider having the actuary perform.
To minimize the impact of investment management fees on portfolio returns, the GFOA developed this best practice, which recommends that retirement systems, especially those that use alternative investment strategies, adopt an investment management fee policy that will allow the retirement system to negotiate the lowest competitive fee possible while looking out for the systems long-term earning potential. The best practice also provides recommendations to governments about strategies to reduce investment fees.
The Government Finance Officers Association (GFOA) recommends that state and local governments develop an understanding of the risks inherent in investing bond proceeds and incorporate steps in their investment strategy for each fund to minimize these risks.
The Government Finance Officers Association (GFOA) recommends that state and local government employers that sponsor group health plans implement a process for reviewing federal health-care benefit requirements at least quarterly to ensure that they are aware of any newly issued or soon-to-be issued regulations.
The Government Finance Officers Association (GFOA) recommends that state and local governments should perform cost/benefit analyses, implement safeguards and routinely evaluate opportunities to make and receive electronic payments that are suitable for their specific needs in the following:
The Government Finance Officers Association (GFOA) supports the use of charges and fees as a method of financing governmental goods and services. Concerning the charge and fee setting process, GFOA makes the following recommendations that governments should:
The Government Finance Officers Association (GFOA) recommends that issuers hire a municipal advisor prior to the undertaking of a debt financing unless the issuer has sufficient in-house expertise and access to current bond market information.
When state and local laws do not prescribe the method of sale of municipal bonds, the Government Finance Officers Association (GFOA) recommends that issuers select a method of sale based on a thorough analysis of the relevant rating, security, structure and other factors pertaining to the proposed bond issue.
The Government Finance Officers Association (GFOA) recommends that, unless the issuer has sufficient in-house expertise and access to market information, it should hire an outside municipal advisor prior to undertaking a negotiated debt financing in order to assist the government with evaluating proposals from underwriters, selecting the underwr
The Government Finance Officers Association (GFOA) encourages governments to allocate their indirect costs. There are a number of issues a government needs to address in connection with indirect cost allocation.
GFOA recommends that governments develop and adopt capital planning policies that take into account their unique organizational characteristics including the services they provide, how they are structured, and their external environment.
GFOA recommends that local governments analyze all economic development proposals by evaluating the underlying data, assumptions, and the methodology used.
GFOA recommends that governments considering the possibility of entering into bank loans should develop policies and procedures related to these debt obligations.
The Government Finance Officers Association (GFOA) recommends that governments establish processes to promote awareness throughout the government that grants normally come with significant requirements.