CITY AWARDED HIGHEST RECOGNITION IN FINANCIAL REPORTING FOR SECOND STRAIGHT YEAR

CITY AWARDED HIGHEST RECOGNITION IN FINANCIAL REPORTING FOR SECOND STRAIGHT YEAR

‘Spirit of transparency and full disclosure’ achieved in comprehensive annual financial report

SOMERVILLE
– For the second straight year, the City of Somerville has earned the
highest form of recognition in governmental accounting and financial
reporting in North America for its comprehensive annual financial report (CAFR) for fiscal 2013.

The Certificate of Achievement for Excellence in Financial Reporting
recognizes the City for going beyond the minimum requirements of
generally accepted accounting principles in preparing a CAFR that
achieves a “spirit of transparency and full disclosure,” according to
awarding nonprofit Government Finance Officers Association of the United States and Canada (GFOA). The City earned the same award last year for its fiscal 2012 CAFR and, in April, the GFOA’s Distinguished Budget Presentation Award for its fiscal 2014 budget.

The
program’s high standards mandate, among other requirements, that the
CAFR includes an independent auditor’s report on the City’s financial
statements, and that it describes the relationship between the City’s
financial statements and the data reported for governmental activities,
with analysis focusing on the reasons for changes in the City’s
financial statements rather than only the amount of change. The City
must also clearly distinguish expenses by function instead of lumping
all expenses together in a single line item, making it clear to readers
what exactly is being spent and where, among the other 220-plus
requirements included on GFOA’s checklist.

The City’s CAFR, available at www.somervillema.gov/departments/finance,
complements the annual City budget by presenting a complete accounting
of all government funds, investments and operating activities, more
detailed demographic and statistical information, and annual budget
comparisons to help the reader better understand the financial condition
of the City. The CAFR also has the potential to improve the City's bond
rating and earn lower interest rates for the City. The City currently
has the highest bond ratings in its history—AA+ from Standard & Poor’s and Aa2 from Moody’s Investors Service.

“When I became mayor, our budget was simply a 138-page list of department line items, goals and objectives. Today, our budget
is almost 300 pages of information including revenue accounts,
explanations of cost drivers and more. Our CAFR goes even further in
making City finances transparent and accessible to everyone, from
taxpayers to financial institutions,” said Mayor Joseph A. Curtatone.
“Taxpayers deserve to know how the City is managing their money so they
can hold us accountable, and we need to hold ourselves accountable, meet
our financial obligations and manage the City is a smart, efficient
way. The CAFR helps us achieve that and our commitment to transparency, accountability and open government.”

Reports
submitted for consideration are reviewed by GFOA professional staff and
the GFOA Special Review Committee (SRC), which includes individuals
with expertise in public-sector financial reporting such as financial
statement preparers, independent auditors, academics and other finance
professionals. The GOFA is a nonprofit
professional association serving over 17,800 government finance
professionals throughout North America and established the Certificate
of Achievement for Excellence in Financial Reporting in 1945.