Best Practices/Advisories

Best Practices/Advisories

GFOA Best Practices identify 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.  

GFOA Advisories identify specific policies and procedures necessary to minimize a government’s 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.

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187 Documents

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Public-Private Partnerships (P3)

Advisory
January 2015

Organizations, and especially the finance officer, must understand what is at stake and make informed, strategic decisions on whether or not to pursue P3 opportunities. Finance officers should be involved throughout the process of a public entity’s consideration of potential P3 opportunities.

Committee: 
Economic Development and Capital Planning

Using Mutual Funds for Cash Management Purposes

Best Practice
January 2015

The GFOA recommends that state and local governments restrict their use of mutual funds for cash management purposes exclusively to: (1) money market mutual funds that are invested in Treasury, federal government agency, or first tier categories and possess the highest ratings available from at least one nationally-recognized ratings agency and (2) short-term bond funds that receive the highest credit quality ratings and the lowest risk ratings available.

Committee: 
Treasury and Investment Management

Enhancing Reliability of Actuarial Valuations for Pension Plans

Best Practice
September 2014

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.

Committee: 
Retirement and Benefits Administration

Investment Fee Policies for Retirement Systems

Best Practice
September 2014

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 system’s long-term earning potential. The best practice also provides recommendations to governments about strategies to reduce investment fees.

Committee: 
Retirement and Benefits Administration

Investment of Bond Proceeds

Best Practice
September 2014

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.

Committee: 
Governmental Debt Management
Treasury and Investment Management

Complying with the Affordable Care Act

Best Practice
February 2014

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.

Committee: 
Retirement and Benefits Administration

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