CP099 (Financial Statement Preparation)CITY OF JANESVILLE Policy No. 99
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CITY COUNCIL POLICY STATEMENT
Date Issued: 2/26/18
General Subject: Financial Statements Revised: 6/12/23
Special Subject: Financial Statement Effective Date: 6/13/23
Preparation and Review
Responsible Dept/Div: Finance Office
PURPOSE
To clarify the Council policy relative to the preparation and review of
the City’s annual financial statements.
STATEMENT OF POLICY
All journal entries are prepared by Finance Office or Clerk-Treasurer’s
Office staff and reviewed and approved by the Finance Director or Clerk-
Treasurer, respectively, to ensure adequate separation of duties.
Throughout the year, the Finance Office staff prepares Year-to-Date
Budget to Actual reports that are reviewed by Department, Division, and
Office Heads as well as Finance Office staff for accuracy and
completeness. Finance Office staff prepare timely reconciliations of all
balance sheet accounts to identify errors or potential internal control
weaknesses. Procedures are in place for Departments, Divisions, and
Offices to report errors to the Finance Office and for Finance Office
staff to review and make adjustments to procedures and controls to reduce
or eliminate repeating issues.
The annual financial statements shall be prepared by the Finance Office
- specifically the Finance Director, Accounting Manager (CPA), and Senior
Accountant (CPA) - at the time of the annual audit. The financial
statements, and accompanying footnotes, are then reviewed by the Finance
Director within two to four weeks. Any discrepancies found will be
addressed and corrected by the Finance Office before submission to the
auditor. The auditor will review the financial statements and recommend
changes, if necessary, to the Finance Office. The final Annual
Comprehensive Financial Report (ACFR) document will then be shared with
the City Council and Community Development Authority (CDA) upon
completion.
Items to be checked and verified by the Finance Office staff are as
follows:
1. Balance sheets and statements of net position foot/recalculate and
balance.
2. Statements of revenue, expenditures, and changes in fund balance
as well as the statements of activities foot/recalculate and ending
fund balances/net positions reconcile to balance sheets/statement
of net positions. All numbers within the financial statements will
be verified to the accounting system.
CITY OF JANESVILLE Policy No. 99
Page 2 of 2
CITY COUNCIL POLICY STATEMENT
Date Issued: 2/26/18
General Subject: Financial Statements Revised: 6/12/23
Special Subject: Financial Statement Effective Date: 6/13/23
Preparation and Review
Responsible Dept/Div: Finance Office
3. Statements of cash flow foot/recalculate and reconcile to the cash
in the statements of net position. Cross referencing of all reports
will be done.
4. Amounts in footnotes are cross referenced to the audited trial
balance or audited financial statements.
5. Amounts in footnotes foot/recalculate where applicable.
6. Financial statement reports and footnotes are read and reviewed
for any misspellings, inconsistencies, or questionable items.
7. The footnote addressing accounting policies (typically the first
footnote) is reviewed to ensure that policies are up to date with
the most recent City and Community Development Authority (CDA)
policies. Additionally, the Finance Office will utilize the
Government Finance Officers Association (GFOA) checklist review to
ensure completeness of disclosures.
Submitted Comments:
1. Comments and/or revisions will be discussed with auditors, as well
as followed up with email correspondence. Upon receipt of final
draft, Finance Office staff will make sure all required and
pertinent comments/revisions are present before the final document
is approved.
2. The auditors are responsible for following up on any changes to
the financial statements within two to four weeks after
presentation by the Finance Office so the Finance Office can ensure
completeness and timely submission to HUD Real Estate Assessment
Center (REAC) before the published end of year due date.
After receiving written confirmation from the auditors that the review
is complete and ready for submission, the Finance Office with assistance
from the auditors will enter the financials into HUD REAC system before
the published end of year due date.