GFOA recommends governments establish a revenue control and management  policy and review it on an annual basis. This policy should be  customized for the size and resources of the government.

Governments should develop a formal grants policy and that such a policy should address steps to take prior to applying for or accepting grants. 

Fund Balance Guidelines for the General Fund

Governments should establish a formal policy on the level  of  unrestricted fund balance that should be maintained in the general  fund  for GAAP and budgetary purposes. 

Governments should formally adopt financial policies.   Steps to  consider when making effective financial policies include (1)  scope,  (2) development, (3) design, (4) presentation, and (5) review.

Governments should 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.  

Investment Policies for Defined Benefit Plans

Defined benefit plans should establish and adhere to a formal investment policy to regulate and monitor the system’s investment program. Such policy should be viewed as a long-term governing document.

GFOA  recommends that all governments establish a comprehensive written  investment policy, which should be adopted by the governing body. 

Issuers of bonds or other debt obligations should develop and  adopt  formal, written post-issuance compliance policies and procedures to assist in meeting compliance requirements and in preventing, identifying and correcting possible violations that might occur during the term that bonds are outstanding.

Issuers should establish clear policies and procedures for  compiling information before issuing debt.

Accounting and Financial Reporting for Fiduciary Activities

Begin discussions, identify all potential fiduciary activities, identify types of fiduciary funds, determine when to recognize a fiduciary fund liability, and apply the Standard retroactively and prepare the disclosures.

Financial Policy Best Practices

Adopting Financial Policies