Standing Committees Approve 16 Recommended Practices At the Winter Standing Committees Meeting, six of GFOA’s seven standing committees approved 16 Recommended Practices (RPs) for review and consideration for approval by the GFOA Executive Board at its spring meeting. The Committee on Cash Management approved updates to five RPs. In its RP on Electronic Commerce, the committee recommends that governments investigate and adopt electronic payment methods suitable for their specific needs. The RP also outlines key factors to consider when evaluating the costs and benefits of electronic payments and recommends safeguards that should be implemented. The committee also updated its RP on the Acceptance of Credit and Debit Cards to include seven points that governments should consider in deciding whether to accept credit and debit cards as a method of payment. The committee’s update of its RP on Purchasing Card Programs highlights the advantages and disadvantages of purchasing cards and recommends that governments explore using purchasing cards to improve the efficiency of their purchasing procedures. The RP on the Use of Cash Flow Forecasts in Operations was modified to highlight the importance of organization-wide involvement in creating cash-flow forecasts. Finally, the RP on Mark-to-Market Reporting Practices was revised by deleting references to investment pools, which the committee determined would be better dealt with in its RP on the Use of Local Government Investment Pools. The Committee on Retirement and Benefits Administration (CORBA) approved a new RP titled Monitoring and Disclosure of Fees for Defined Contribution (DC) Plans. In this RP the GFOA recommends that plan sponsors establish and implement policies and practices to assure that DC plan costs are reasonable and that participants are provided with ongoing, accessible information regarding these costs. CORBA also approved three new RPs that focus on retirement security and make recommendations regarding essential elements in plan design. These RPs are: Essential Design Elements of Defined Benefit Retirement Plans, Essential Design Elements of Defined Contribution Plans as the Primary Retirement Plan, and Essential Design Elements of Hybrid Retirement Plans. The Committee on Accounting, Auditing, and Financial Reporting (CAAFR) approved two new RPs. The first, Improving the Timeliness of Financial Reports, makes suggestions to help governments publish financial reports as soon as possible after the end of the reporting period. The RP makes recommendations in areas related to recording activity throughout the year; closing and financial statement preparation processing; implementation of new accounting standards; financial report format and distribution; and contracting for professional services. CAAFR’s other newly adopted RP, Ensuring Adequate Documentation of Costs to Support Claims for Disaster Recovery Assistance, makes recommendations regarding the need to collect and maintain adequate documentation to support reimbursement of disaster-related costs. The recommendations include establishing formal policies and procedures for the documentation of disaster-related costs and ensuring adequate detail to support claims. The Committee on Economic Development and Capital Planning (CEDCP) approved a new RP, The Role of Master Plans in Capital Improvement Planning. This RP develops the relationship between long-range plans and shorter, capital improvement plans and recommends that governments make capital project investment decisions that are aligned to their long-range Master Plans. CEDCP also approved, in conjunction with the Governmental Debt Management Committee, an RP on Public-Private Partnerships for Economic Development. This RP examines the term public-private partnerships (P3), which is often confused with privatization, and addresses the role of entities involved in these transactions as well as the associated benefits and risks for governmental bodies. The Committee on Governmental Budgeting and Fiscal Policy (Budget) approved a new RP, Long-Term Financial Planning, which recommends that all governments regularly engage in long-term financial planning. The Budget committee also modified its RP on Business Preparedness and Continuity Guidelines to include an update on important features such as National Incident Management System required training; the concept of resiliency, which emphasizes the capacity of infrastructure, operations, and even social systems to respond to and recover from extreme events; communication with the public; and mutual aid agreements, which many state and local governments enter into to provide emergency assistance to each other in the event of disasters or emergencies. The Governmental Debt Management Committee revised the Selection of Bond Counsel RP. The changes provide greater detail about what should be included in an RFP for counsel services, including explanation of fees; when applicable, the need to determine a firm’s experience in tax and securities matters; and suggests the use of a “Form of Contract” in the RFP or RFQ package to incorporate elements and provisions conforming to prevailing law and procurement processes.
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