Financial Reporting

The Annual Comprehensive Financial Report provides a complete overview of the City’s financial operations and financial position. The format and content of the City’s ACFR complies with the principles and standards of accounting and financial reporting adopted by the Governmental Accounting Standards Board (GASB), and contains all information needed for readers to gain an understanding of the City’s financial affairs.

The City’s ACFR is presented in six sections:

• Introductory section:  includes the Transmittal Letter and general information
• Management Discussion and Analysis
• Basic Financial Statements:  Includes the Government-Wide and Fund Financial Statements, and accompanying Notes to the Financial Statements
• Required Supplemental Information (RSI) and Supplemental Information
• Statistical Information
• Single Audit

The City’s Investment Policy requires that staff report to Council quarterly on the City’s portfolio composition and performance compared to the Council-adopted Policy, discuss overall compliance with the City’s Investment Policy, and provide recommendations, if any, for policy changes. In addition, staff provides a detailed list of all securities and reports on the City’s ability to meet expenditure requirements over the next six months.

View the City Investment Policy.(PDF, 454KB)

The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds, provide that sufficient money is always available to meet current expenditures, and achieve a reasonable rate of return on its investments. 

The Long Range Financial Forecast (LRFF) provides a ten-year financial forecast of the General Fund based on City Council approved service levels and alternative financial scenarios. The LRFF reflects staff’s best estimates on the projected revenues and expenditures and is based on available information at the time of preparation. This forecast is used to guide the annual budget development, and assumptions are revised and refined as more information becomes available throughout the process. Staff also transmits Budget Development Guidelines with the LRFF to strategically plan and prioritize spending to ensure long term financial stability.