Mauritius Finance

Aug 31 2017

Best Practices #best #finance #management #software


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Best Practices/Advisories

Best Practices/Advisories

GFOA Best Practices identify specific policies and procedures that contribute to improved government management. They aim to promote and facilitate positive change or recognize excellence rather than merely to codify current accepted practice. GFOA has emphasized that these practices be proactive steps that a government should be taking. Best practices are applicable to all governments (both large and small). Best practices are approved by the GFOA executive board and represent the official position of the organization.

GFOA Advisories identify specific policies and procedures necessary to minimize a government’s exposure to potential loss in connection with its financial management activities. For many advisories, GFOA will be providing specific recommendations on how to avoid risk or loss, either proactively or retroactively, in response to current events or trends. Advisories are approved by the GFOA executive board and represent the official position of the organization.

Best Practices by Topic

GFOA recommends that state and local governments adopt comprehensive written debt management policies. These policies should reflect local, state, and federal laws and regulations. GFOA also has available two checklists to provide guidance.

Governmental Debt Management

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.

Economic Development and Capital Planning

GFOA recommends jurisdictions using or considering the use of economic development incentives create a policy on the appropriate parameters for use of such incentives and that the finance officer play an active role in the creation of the policy.

At a minimum, an economic development policy should contain the following elements:

Economic Development and Capital Planning

GFOA recommends that governments develop a formal grants policy. Further, GFOA recommends that such a policy address steps to take prior to applying for or accepting grants, and that the policy at minimum contain the following components:

Governmental Budgeting and Fiscal Policy

Economic Development and Capital Planning

GFOA recommends that state and local entities establish a formal pension investment policy that is approved by the governing board or trustee(s) of the pension plan. A pension investment policy should be viewed as a long-term governing document.

Retirement and Benefits Administration

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.

Treasury and Investment Management

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

Governmental Budgeting and Fiscal Policy

GFOA recommends that governments establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund for GAAP and budgetary purposes. 3 Such a guideline should be set by the appropriate policy body and articulate a framework and process for h

Accounting, Auditing, and Financial Reporting

Governmental Budgeting and Fiscal Policy

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

GFOA recommends that governmental bond issuers consider developing an investor relations program. The centerpiece of such a program is a commitment to provide full and comprehensive disclosure of annual financial, operating, and other significant information in a timely manner consistent with federal, state and local laws.

Governmental Debt Management

GFOA recommends that finance officers responsible for their government’s debt management program adopt a thorough continuing disclosure policy and adhere to the following best practices. Issuers should determine how to apply best practices in the manner that is relevant and most practical for their entity.

Governmental Debt Management

GFOA recommends that bond issuers use technology – including both their own websites and additional features of the EMMA platform – to disseminate information to the municipal securities market regarding their debt, financial condition and other related information.

Governmental Debt Management

Debt Management / Post Issue Compliance

The Government Finance Officers Association (GFOA) recommends that issuers include guidelines in their debt management policies that address preservation of future refunding flexibility when issuing any debt, formal refunding objectives, and monitoring of refunding opportunities on outstanding debt.

Governmental Debt Management

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

Governmental Debt Management

To ensure that debt principal and interest payments are made on a timely and cost effective basis, the GFOA makes the following recommendations to state and local governments.

Treasury and Investment Management

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.

Governmental Debt Management


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