Government Finance Officers Association of Texas

The Government Finance Officers Association of Texas (or GFOAT) is a professional association of state, county, and local government

Local government

Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...

finance officers in Texas

Texas

Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

. The Government Finance Officers Association of Texas is the statewide organization serving all Texas municipal finance professionals, an affiliate of the nationwide Government Finance Officers Association (GFOA). Membership is open to anyone in the State of Texas actively engaged in government finance in any city

City

A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...

, county, or special district. Its stated mission is to enhance the quality of local government finance, to assist and support local government finance professionals in Texas, and to promote the public service profession. GFOAT members are actively involved in the key issues facing cities, counties, and special districts in the State of Texas.

Recognizing that public servants have an obligation to serve the public’s interests, GFOAT serves to actively improve fiscal integrity, adherence to the highest standards of ethical conduct, and to create better accountability by disseminating best practices.

The Challenge to Excellence in Government Finance

The Chief Financial Officers Act of 1990

Chief Financial Officers Act of 1990

The Chief Financial Officer and Federal Financial Reform Act of 1990, or CFO Act, signed into law by President George H.W. Bush on November 15, 1990, is a United States federal law intended to improve the government's financial management, outlining standards of financial performance and disclosure...

(CFO Act) was signed into law by President George H.W. Bush. For each of 23 federal agencies, the position of chief financial officer was created. Since that time, federal efforts have been intended to improve the government's financial management and develop standards of financial performance and disclosure. Similar financial expectations exist at State and Local government levels.

The chief financial officer

Chief financial officer

The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...

(CFO) of a public agency is the corporate officer primarily responsible for managing the financial risks of the business or agency. This officer is also responsible for budgeting, financial planning, record-keeping, cash flow management, higher management. communicating financial performance and forecasts to the community. The title may vary, such as finance director or treasurer, from agency to agency. The CFO typically reports to the city manager or other chief executive officer.

Financial reporting has multiple audiences, with a responsibility to citizens, taxpayers and voters to provide transparent accountability for use of public funds (taxes). Additionally, financial reporting must provide internal guidance to program managers to maintain budgetary control and to governing city councils and boards of directors to provide adequate financial policy guidelines.

The United States government in general has sought to improve the quality of financial reporting. The Government Accounting Standards Board (GASB

GASB

GASB may refer to:* Governmental Accounting Standards Board * Gallium antimonide...

) has a stated mission to "establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports." Pronouncements in particular have trended to incorporate more comparable elements of business-sector.

The need for and value of financial managers has increased. Over the past decades, a number of factors have created a rapidly changing environment for today's government financial managers. Beginning with the New York City

New York City

New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

financial crisis in the 1970s and 1980s, state and local governments began overhauling their financial management systems. In 1990, the Chief Financial Officers (CFO) act called for reforms that brought the goal of accountability to the forefront. The 1994 Bankruptcy of Orange County, California

Orange County, California

Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...

further underscored the need for ongoing excellence and expertise in the field of municipal finance.

Role of GFOAT Membership

Members are finance directors and treasurers of municipalities and other local government agencies, whether elected or appointed, having responsibility for collection, receipt, reporting, custody, investment or disbursement of municipal funds. Municipal funding sources are commonly property tax

Property tax

A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...

, sales tax

Sales tax

A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....

, income tax

Income tax

An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...

, utility users tax (UUT), transient occupancy tax (hotel occupancy), and user fees such as licensing and permit fees.

Susan Combs

Susan Combs

Susan Combs is a Republican politician from the U.S. state of Texas, currently serving as the state's Comptroller of Public Accounts....

is the Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts

The Texas Comptroller of Public Accounts is an executive branch position created by the Texas Constitution. As with nearly every other executive branch head, the Comptroller is popularly elected every four years concurrently with the Governor and the other elected executive branch positions...

of the State of Texas. The office of Texas State Treasurer was established in the Constitution of 1876. It superseded a similar office in the Republic of Texas. The treasurer was elected to serve for four years as head of the State Treasury Department. The office was abolished by Texas voters in 1995 and was formally closed in 1996, with duties taken over by the Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts

.

Texas has 254 counties, by far the most counties of any state. As of 2000, six Texas cities had populations greater than 500,000. The two largest are Dallas and Houston. Texas has the most cities with populations exceeding 1,000,000 of any state: Dallas, Houston, San Antonio. These three rank among the 10 most populous cities of the United States. Austin, Fort Worth, and El Paso are among the 25 largest U.S. cities. Texas has 25 metropolitan areas, four of which have populations greater than 1,000,000: Dallas-Fort Worth, Houston

Greater Houston

Houston–Sugar Land–Baytown is a 10-county metropolitan area defined by the Office of Management and Budget. It is located along the Gulf Coast region in the U.S. state of Texas...

, San Antonio

Greater San Antonio

Greater San Antonio is a 8-county metropolitan area defined by the Office of Management and Budget. It is located in the South Central region of Texas. The MSA of Greater San Antonio is colloquially referred to as the "San Antonio-New Braunfels" metropolitan area as of the 2010 census.The official...

and Austin-Round Rock

Greater Austin

Austin–Round Rock–San Marcos is a five-county metropolitan area in the US state of Texas, as defined by the Office of Management and Budget. The metropolitan area straddles on the eastern edge of the and is situated in Central Texas....

. The Dallas-Fort Worth and Houston metropolitan areas each has about 5 million residents.
Many City Treasurers are elected, and are therefore directly accountable to their constituents; the remainder are appointed either by City Council or City Manager. Finance Directors typically are appointed by the City Manager.

In addition to cities and counties, Texas has numerous special districts. The most common is the independent school district

School district

School districts are a form of special-purpose district which serves to operate the local public primary and secondary schools.-United States:...

, which (with one exception) has a board of trustees that is independent of any other governing authority. Other special districts include Groundwater Conservation Districts (regulatory agencies), river authorities, water supply districts (for irrigation or municipal supply), public hospitals, road districts and community colleges.

Professional Standards Setting

Certification is a guide for municipal finance directors and treasurers to become valued administrators in local government. GFOAT encourages professional certification

Professional certification

Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure qualification to perform a job or task...

for public finance directors and treasurers who meet standards of education, experience and commitment to a code of ethics. GFOAT offers its own post-nominal professional certificate, the Certified Government Finance Officer (CGFO) similar to the GFOA-administered the Certified Professional Finance Officer (CPFO), and Certified Government Financial Manager

Certified Government Financial Manager

A Certified Government Financial Manager is a professional certification issued by the Association of Government Accountants . It was created in 1994 to provide a professional standard of financial expertise and ethics in government and a standard by which government financial management...

(CGFM) certification in Federal, State and Local Government Financial excellence from the Association of Government Accountants (AGA).

GFOAT Code of Ethics

All government finance officer members are enjoined to adhere to legal, moral and professional standards of conduct in the fulfillment of their professional responsibilities. Standards of professional conduct as set forth in this code are promulgated in order to enhance the performance of all persons engaged in public finance. :

I. Personal Standards

Government finance officers shall demonstrate and be dedicated to the highest ideals of honor and integrity in all public and personal relationships to merit the respect, trust and confidence of governing officials, other public officials, employees, and of I he public.
They shall devote their time, skills and energies to their office both independently and in cooperation with other professionals.
They shall abide by approved professional practices and recommended standards.

II. Responsibility as Public Officials

Government finance officers shall recognize and be accountable for their responsibilities as officials in the public sector.
They shall be sensitive and responsive to the rights of the public and its changing needs.
They shall strive to provide the highest quality of performance and counsel.
They shall exercise prudence and integrity in the management of funds in their custody and in all financial transactions.
They shall uphold both the letter and the spirit of the constitution, legislation and regulations governing their actions and report violations of the law to the appropriate authorities.

III. Professional Development

Government finance officers shall be responsible for maintaining their own competence, for enhancing the competence of their colleagues, and for providing encouragement to those seeking to enter the field of government finance. Finance officers shall promote excellence in the public service.

IV. Professional Integrity-Information
Government finance officers shall demonstrate professional integrity in the issuance and management of information.
They shall not knowingly sign, subscribe to, or permit the issuance of any statement or report which contains any misstatement or which omits any material fact.
They shall prepare and present statements and financial information pursuant to applicable law and generally accepted practices and guidelines.
They shall respect and protect privileged information to which they have accessed by virtue of their office.
They shall be sensitive and responsible to inquiries from the public and the media, within the framework of state or local government policy.

V. Professional Integrity-Relationships
Government finance officers shall act with honor, integrity and virtue in all professional relationships.
They shall exhibit loyalty and trust in the affairs and interests of the government they serve, within the confines of this Code of Ethics.
They shall not knowingly be a party to or condone any illegal or improper activity.
They shall respect the rights, responsibilities and integrity of their colleagues and other public officials with whom they work and associate.
They shall manage all matters of personnel within the scope of their authority so that fairness and impartiality govern their decisions.
They shall promote equal employment opportunities, and in doing so, oppose any discrimination, harassment or other unfair practices.

VI. Conflict of Interest
Government finance officers shall actively avoid the appearance of or the fact of conflicting interest.
They shall discharge their duties without favor and shall refrain from engaging in any outside matters of financial or personal interest incompatible with the impartial and objective performance of their duties.
They shall not, directly or indirectly, seek or accept personal gain which would influence, or appear to influence, the conduct of their official duties.
They shall not use public property or resources for personal or political gains.

Training and Education in Texas Finance and Treasury

GFOAT's annual statewide conferences provide an array of education across many topics and alternate annually between various northern and southern cities. By assembling leadership from a broad representation of government agencies and also bringing in subject matter experts in various disciplines, the collective expertise and professionalism of financial managers and policymakers is enhanced and improved.

Statewide Financial Leadership

GFOAT is recognized as a leading source of expert knowledge in public financial management by exercising leadership in research, recommended practice and policy development, and information dissemination. Nationwide recognition is furthered through a continued association with the nationwide Government Finance Officers Association (GFOA). Statewide recognition is furthered through a thorough participation of members drawn from many cities, counties and special districts.

Standing Committees
Financial Leadership is furthered by engaging in efforts to assist statewide finance officers to develop the skills and capabilities necessary to enable them to become organizational leaders as well as technical experts.

Committee	Chair
Ethics	Rebecca Koo, City of The Colony The Colony, Texas The city is bordered on the west by Lewisville Lake and Lewisville, Texas, on the north and east by Frisco, Texas and on the south by Carrollton, Texas and Plano, Texas... and Rhonda Covarrubias, Texas Municipal Retirement System (TMRS)
Financial Reporting	Robert B. Scott, City of Carrollton Carrollton, Texas -Climate:On average, the warmest month is July.The highest recorded temperature was 112°F in 1980.The average coolest month is January.The lowest recorded temperature was 1°F in 1989.*The most precipitation on average occurs in May.... and Keith Dagen, City of Richardson Richardson, Texas Richardson is a city in Dallas and Collin Counties in the U.S. state of Texas. As of the 2010 census, the city had a total population of 99,223. In 2011 the population was estimated to be 107,684. Richardson is an affluent inner suburb of Dallas and home of the Telecom Corridor with a high...
Legislative	Bret Starr, City of Irving Irving, Texas Irving is a city located in the U.S. state of Texas within Dallas County. According to the 2010 U.S. Census, the city population was 216,290. Irving is within the Dallas–Plano–Irving metropolitan division of the Dallas–Fort Worth–Arlington metropolitan area, designated... and Antonio Puente, Jr., City of Denton Denton, Texas The city of Denton is the county seat of Denton County, Texas in the United States. Its population was 119,454 according to the 2010 U.S. Census, making it the eleventh largest city in the Dallas/Fort Worth Metroplex...
Membership	Collin Boothe, City of Conroe Conroe, Texas Conroe is a suburban city 40 miles north of Houston in the gulf coastal plains/piney woods region of southeast Texas.It is the seat of Montgomery County and falls within the metropolitan area.As of the 2000 U.S... and Elizabeth Dietrich, City of Bellmead Bellmead, Texas Bellmead is a city in McLennan County, Texas, United States. The population was 9,214 at the 2000 census. It is part of the Waco Metropolitan Statistical Area.-Geography:Bellmead is located at ....
Newsletter / Website	Janina Jewell, City of Watauga Watauga, Texas Watauga is a city in Tarrant County, Texas, United States, and a suburb of Fort Worth. The population was 23,497 at the 2010 census.-Geography:Watauga is located at... and Vicki McCarthy, City of Grapevine Grapevine, Texas Grapevine is a city in northeast Tarrant County, Texas, United States located within the Dallas-Fort Worth metropolitan area. As of the 2010 census the city population was 46,334. The city's moniker is derived from the native grapes prevalent in the area. In recent years several wineries have...
Professional Awareness	Clay Caruthers, City of Hurst Hurst, Texas Hurst is a city in Tarrant County, Texas, United States. Hurst is one of the Mid-Cities between Fort Worth and Dallas, but is a suburb of Fort Worth. The city was founded by William Letchworth Hurst... and Jennifer Brown, City of Sugar Land Sugar Land, Texas Sugar Land is a city in the U.S. state of Texas within the metropolitan area and Fort Bend County. Sugar Land is one of the most affluent and fastest-growing cities in Texas, having grown more than 158 percent in the last decade. In the time period of 2000–2007, Sugar Land also enjoyed a...
Professional Development	Laurie Brewer, City of Hutto Hutto, Texas Hutto is a city in Williamson County, Texas, United States. It is part of the Austin-Round Rock metropolitan area. The population was 1,250 at the 2000 census; it had grown to 7,401 in the 2005 census estimate and had reached 17,120 by January 2008.... and Carl Wessels, City of Lancaster Lancaster, Texas Lancaster is a city in Dallas County, Texas, United States. The population was 25,894 at the 2000 census.Lancaster is a suburb of Dallas, Texas and is part of the Best Southwest area, which includes Lancaster, Cedar Hill, DeSoto, and Duncanville. Most of the city is in Dallas County. But a...
Program Development	Kent Pfeil, City of Richardson Richardson, Texas Richardson is a city in Dallas and Collin Counties in the U.S. state of Texas. As of the 2010 census, the city had a total population of 99,223. In 2011 the population was estimated to be 107,684. Richardson is an affluent inner suburb of Dallas and home of the Telecom Corridor with a high...
Scholarship and Foundation	Teri Roche', City of Baytown Baytown, Texas Baytown is a city within Harris County and partially in Chambers County in the Gulf Coast region of the U.S. state of Texas. Located within the Houston–Sugar Land–Baytown metropolitan area, it lies along both State Highway 146 and Interstate 10. As of 2010, Baytown had an population of 71,802... and Michael Higgins, City of Missouri City Missouri City, Texas Missouri City is a city located in the U.S. state of Texas within the metropolitan area. The city is mostly in Fort Bend County with a small portion within Harris County. As of the 2000 U.S...

Resources

GFOAT seeks to facilitate interagency communication for the purposes of sharing information and best practices, cooperating with and complementing the services provided by other organizations to increase the effectiveness of all.

Like GFOA nationwide, GFOAT sponsors award programs designed to encourage good financial reporting in Texas, for financial documents including the Comprehensive annual financial report

Comprehensive annual financial report

A Comprehensive Annual Financial Report is a set of government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements—generally accepted accounting principles —promulgated by the Financial Accounting...

, or CAFR, and the annual budget

Budget

A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...

.

GFOAT provides technology information and analytical tools to help governments identify and apply appropriate, economical technologies to support efficient resource allocation, quality services, and effective decision making and to promote citizen involvement.

External links

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