CITY EARNS BUDGET AWARD FOR MEETING HIGHEST PRINCIPLES OF GOVERNMENTAL BUDGETING

SOMERVILLE

–Somerville’s commitment to the highest principles of governmental budgeting

has been recognized in the City earning the Distinguished Budget Presentation

Award, a “significant achievement” according to awarding nonprofit Government Finance Officers Association of the

United States and Canada (GFOA).

In

earning the award, the City of Somerville met nationally recognized guidelines

for effective budget presentation. The GFOA reviewers evaluated the City’s FY14

budget, available on

the City Finance Department’s webpage, on 27 specific criteria to assess

how well the budget serves as a policy document, financial plan, operations

guide and communications device.

Earning

the Distinguished Budget Presentation Award—the only national awards program in

governmental budgeting—requires that the budget is rated as either proficient

or outstanding for all four of those categories, as well as for 14 of the 27

criteria identified as mandatory, including a coherent statement of city-wide

long-term financial policies and a budget message that articulates priorities

and issues for the upcoming year, among other criteria.

When

Mayor Joseph A. Curtatone took office, the City’s annual budget document was a

138-page document listing departmental line items with goals and objectives,

but no revenue accounts. Today, the City’s budget presentation is a 291-page

document that includes a narrative explanation of cost drivers; budgetary

changes; a historical spending analysis; detailed revenue and organizational

charts; enterprise and revolving funds; and performance metrics, among other

details that shape the budget and the City’s long-term financial planning.

“This award recognizes our commitment to transparency,

accountability and open government, and to a long-term vision that demonstrates

careful financial planning on behalf of Somerville’s taxpayers,” said Mayor

Curtatone. “Ten years ago, our budget lacked all the necessary details to form

a clear picture of where the city has been, where it is and where it is going.

We had no detailed capital budget. Today, we put forth a budget that holds us

accountable for our performance and details all the factors that go into our

financial planning, and we have a five-year capital budget that specifies how

we will pay for those improvements and purchases. Taxpayers deserve to know exactly

how their money is being managed by the City, how City Hall is operating and

how we are planning for the future. Our budget provides that clear and

transparent picture to all taxpayers, and the GFOA has recognized it.”

The

City of Somerville previously earned the highest form of recognition in

governmental accounting and financial reporting from the GFOA in October 2013 for

its comprehensive annual financial report (CAFR), which demonstrated a spirit

of full disclosure and motivated people to read the report. The nonprofit

awarded the City the Certificate

of Achievement for Excellence in Financial Reporting, its highest

recognition, after an impartial panel judged the City’s CAFR as meeting the

high standards of the program, specifically the spirit of transparency and full

disclosure that is a core value of City Hall under Mayor Curtatone.

The

GOFA is a nonprofit professional association serving over 17,800 government

finance professionals throughout North America and established the

Distinguished Budget Presentation Awards Program in 1984, to encourage and

assist state and local governments to prepare budget documents of the highest

quality, reflecting national guidelines and best practices. According to the most

recent award recipients listed on the GFOA website, in 2012 there were 16

Massachusetts agencies including 12 municipalities that received the award. For

budgets including FY 2013, approximately 1,340 entities from across the U.S.

and Canada are expected to receive the budget presentation award.