Issue link: http://www.e-digitaleditions.com/i/850954
E n s u r i n g a S t r o n g F u t u r e 52 | P a g e Financial Management The District is serious about financial discipline and safeguarding assets. The 2018 Five Year Budget and the 2017 Financial Forecasting Model help guide the District in the near term and position it to achieve future goals. Sufficient and stable revenues coupled with restrained spending are key to achieving the objectives outlined in this Plan while adequate reserve levels provide protection, exhibit financial strength and help smooth out rate increases. Equally important is the preparation of the District's Annual Financial Audit. The audit report presents the District's annual performance compared to the prior year. It also provides information that is vital to understanding the operation of the District and the composition of its assets and liabilities. The audit process helps to ensure that the information presented in the report is an accurate representation of the District's operations and helps validate adherence to relevant laws and accounting principles. Sound internal controls are fundamental to the protection of District assets. Policies and procedures developed and maintained by the Finance Department govern purchasing decisions and help ensure accountability. Staff also provides assistance and training for staff to ensure these procedures are understood and followed. In order to make this Plan possible, it was essential to perform a Cost of Service Study (COSS) by an independent consultant. The COSS determined the revenues required to accomplish the Plan's goals and the rates necessary to generate those revenues. The COSS, which spanned over seven months, provides sound support for the District's rate structures and multi-year increases. Financial Management