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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Commission Recapture Programs

Advisory

A pension plan should first determine whether a commission recapture program will actually produce lower costs overall. If the pension plan’s board of trustees decides to have such a program, or if it is required by law, GFOA recommends the following guidelines for proper administration.

Committee: 
Retirement and Benefits Administration

Demonstrating Legal Compliance When Budgetary Special Revenue Funds Are not Reported as Special Revenue Funds for the Purposes of GAAP Financial Reporting

Advisory

National Council on Governmental Accounting (NCGA) Statement 1, Governmental Accounting and Financial Reporting Principles, takes a “both/and” approach to conflicts between GAAP financial reporting and legal compliance.

Committee: 
Accounting, Auditing, and Financial Reporting

Developing a Policy to Participate in Securities Litigation Class Actions

Best Practice

A considerable number of Plans have not been filing proof of claim forms toparticipate in settlements in which they have eligible claims and, as a result, are forfeiting money.2 Therefore, GFOA recommends that every Public Pension Plan develop and adopt a policy setting forth procedures for monitoring and partic

Committee: 
Retirement and Benefits Administration

Managing Build America and other Direct Subsidy Bonds

Best Practice

GFOA recommends that governments that issued BABs or other direct subsidy bonds, be acutely aware of their ongoing responsibilities associated with these bonds and be cognizant of Internal Revenue Service (IRS) actions related thereto.  Additionally, if Congress reinstates direct subsidy bond programs, the GFOA advises governments to exercise ca

Committee: 
Governmental Debt Management

Using the Comprehensive Annual Financial Report to Meet SEC Requirements for Periodic Disclosure

Best Practice

GFOA recommends that governments subject to SEC Rule 15c2-12 consider using the CAFR as their disclosure document for providing information useful to existing and potential investors in the secondary market and meeting their obligation to provide annual disclosure for the secondary market, as required by Rule 15c2-12.

Committee: 
Accounting, Auditing, and Financial Reporting

Including Management’'s Discussion and Analysis in Departmental Reports

Best Practice

GFOA recommends that MD&A be presented in conjunction with departmental reports, individual fund reports, and similar reports.2 When MD&A are presented voluntarily, GFOA recommends that their contents be closely modeled on the requirements for MD&A set forth in GASB Statement No.

Committee: 
Accounting, Auditing, and Financial Reporting

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