Financial Policy Challenge: Recognition for Leading Governments.

• Author: Ludwig, Katie
• Position: GFOA POLICY CHALLENGE PART 2

In 2020, GFOA launched its Financial Policy Challenge as an opportunity for GFOA members to adopt and share financial policies that are essential to a strong financial foundation.

Our surveys show that significant portions of the GFOA membership do not have some of the policies that GFOA considers critical. For example, only about half of GFOA members have a one-time revenue policy. GFOA members have continually affirmed their belief that financial policies are important, and the Financial Policy Challenge is a way to access policy templates and share examples. By working together, GFOA members can make these policies much more common.

As of year's end, 2021,12 local governments have earned recognition as winners of the Financial Policy Challenge. To be deemed a winner, a local government had to submit a policy or policies that addressed at least seven policy categories and for each overall category, and the policy had to include a majority of GFOA's key policy elements.

The first set of winners was highlighted in the October 2021 issue of Government Finance Review, and in the coming months, we will highlight more winners. This month, we are featuring the Regional Municipality of Durham, Ontario; the City of Lakeville, Minnesota; the City of Kansas City, Missouri; the City of Flowery Branch, Georgia; the City of College Station, Texas; and the Town of Oak Bluffs, Massachusetts.

GFOA will review submissions twice a year, in summer and winter, and we encourage you to submit your policies at gfoa.org/financial-policy-challenge-entry-form. If you plan to update or revise your policies and are looking for examples, you'll find all the policies that have been submitted at gfoa.org/financial-policy-challenge.

Regional Municipality of Durham, Ontario

Nancy Taylor, Commissioner of Finance and Treasurer for the Regional Municipality of Durham

Policy Categories Submitted:

Capital Planning, Debt, Long-term Forecasting and Planning, Reserves, User Fees, Investment, Procurement

What is the value of having financial policies in place?

Aside from the role of financial policies in ensuring fiscal stability, continuity, and sustainability, the documented policies the Durham Regional Council approves and champions can also become an important tool to help keep the municipality's broader strategic plans aligned with our objectives, provide consistency and guidance to staff and councilors, and enhance transparency to the public. Clarity around delegated authorities and reporting also supports a streamlined decision-making approach and higher efficiencies across business and operational divisions.

How have your financial policies helped during the COVID-19 pandemic?

The Region of Durham's policies and processes, including emergency expenditure management, reporting, and approvals protocols, enabled relatively quick action and a streamlined approach to identifying needs, reallocating resources, and meeting the challenges related to the COVID-19 pandemic.

How do you make sure that internal stakeholders are aware of the policies and/or ensure that they are complying with them?

Durham Region uses a multifaceted approach to ensuring knowledge of financial policies and related processes, including disseminating communications resources, consultations, and training sessions; collaborating through a well-established network crossing all regional program areas; and reporting and approvals by regional council.

Do you have any additional advice or insight related to financial policies that you'd like to share with your...