The Government Finance Officers Association's Recommended Practices

By Wallick, Ruth | Government Finance Review, October 1993 | Go to article overview

The Government Finance Officers Association's Recommended Practices


Wallick, Ruth, Government Finance Review


Over the years, the membership of the Government Finance Officers Association (GFOA) has approved a set of Recommended Practices to be followed by finance officers in their application of the various disciplines involved in public finance. These Recommended Practices represent official GFOA policy positions and affect the operations of state and local governments.

To enhance and promote the professional management of governmental financial resources, GFOA has prepared this summary of its Recommended Practices. The descriptions of the recommended practices are organized by subject matter, with the date of adoption noted parenthetically, under the headings of 1) accounting, auditing and financial reporting; 2) cash management; 3) tax-exempt financing and debt management; 4) budgeting and financial management; and 5) public employee pensions and benefits.

Accounting, Auditing and Financial Reporting

Audit Coverage of Individual Funds. Recommends governments give consideration to subjecting their individual fund financial statements to a full-scope audit similar to the audit required of Combined Statements-Overview. (1983)

Governmental Accounting, Auditing and Financial Reporting Practices. Recommends specific actions governmental entities should take, and laws state governments should enact, to insure that all governmental entities prepare comprehensive annual financial reports in conformity with generally accepted accounting principles and obtain independent annual financial and compliance audits conducted in accordance with generally accepted auditing standards. (1983)

Strengthening the Independent Financial and Compliance Audit. Specifies recommended steps governmental entities should take in selecting independent auditors of financial statements and certain additional standards such auditing firms should meet in order to improve the quality of audits of governmental units. (1986)

Popular Reporting. Encourages governments to supplement their comprehensive annual financial reports/component unit financial reports (CAFRs/CUFRs) with simpler, "popular" reports designed to assist those who need or desire a less detailed overview of a government's financial activities than the necessarily broad and detailed presentations contained in the CAFR/CUFR. (1991)

Cash Management

Governmental Relationships with Securities Dealers. Sets forth recommended practices for governmental investors to follow in selecting depositories and securities dealers for purposes of investment transactions. Recommended practices address method of selection, assurance of capital adequacy of securities dealers, acknowledgment from depositories and dealers of receipt of information about governmental investors, risk awareness by investors and unreasonable risk disclosure by securities dealers, and price and yield quotations prior to executing transactions. (1986)

Repurchase Agreements. Encourages public finance officers to develop policies and procedures to insure the safety of repurchase agreements and sets forth recommendations relating to selection of parties to such transactions and proper collateralization practices. Recommends general use of master repurchase agreements, subject to appropriate legal and technical review, and recommends that governments using the prototype agreement developed by the Public Securities Association should include appropriate supplemental provisions regarding delivery, substitution, margin maintenance, margin amounts, seller representations and governing law. (1986)

Use of Various Types of Mutual Funds by Public Cash Managers. Clarifies the GFOA's endorsement of the use of money market mutual funds by public cash managers through the association's model investment legislation for state and local governments by setting forth information that investors should seek through study of a fund's prospectus and statement of additional information. Specifies special care cash managers should use when investing in bond mutual funds.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Government Finance Officers Association's Recommended Practices
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.