The GFOA Executive Board approved two new best practices in addition to updating four other existing best practices at the September 2016 meeting. These documents provide recommendations to government finance officers in the areas of treasury and investment management, and retirement administration and benefits administration.
Cash-Flow Analysis recommends six essential elements of a cash flow analysis, an important tool to inform management decision making. State and local governments should perform ongoing cash-flow analysis to ensure sufficient cash liquidity to meet disbursement requirements while also limiting idle cash.
Investment Policy includes statements on eight key points, including the fact that an investment policy enhances the quality of decision making and demonstrates a commitment to the fiduciary care of public funds. As a result, a public fund's investment policy is the most important element in a public fund's investment program. GFOA recommends that all public entities establish a comprehensive written investment policy, adopted by the governing body, and update it annually.
Hybrid Retirement Plan Design was revised to reflect the evolution of hybrid plan designs.
Establishing and Administering an OPEB Trust includes a new recommendation that governments commit to funding promised benefits based on regular actuarial valuations, with a target funded ratio of 100 percent or more. GFOA also recommends...