Financial Policy Resource Center

Financial policies provide guidelines for financial decision making and set the strategic intent for financial management and are central to a strategic, long-term approach to financial management.  Some of the most powerful arguments in favor of adopting formal written policies include their ability to help governments: 

  • Institutionalize good financial management practices
  • Clarify strategic intent for financial management
  • Define boundaries
  • Support good bond ratings
  • Promote long-term strategic thinking
  • Manage risks to financial condition
  • Comply with established public management best practices.

GFOA Best Practices