Financial Policies
The adoption of financial policies provides a number of benefits to municipalities large and small. The adoption of financial policies helps to provide consistency, stability and continuity in the financial operations of the town. Written policies provide a framework to guide and educate both newly elected officials in carrying out their fiduciary responsibilities and newly appointed staff in the conduct of their financial duties. The ability to rely on well-defined financial policies helps to resolve conflicts and avoid allegations of bias or favoritism. Additionally, the adoption of financial policies is just a good, sound business practice that fosters confidence in the fiscal operations of the municipality.
The LGC’s publication, Basic Financial Policies: A Guide for New Hampshire Cities and Towns, provides detailed explanations of the basic financial policies that municipalities should consider adopting. The guide includes a CD containing example policies, an internal control checklist, and other information helpful in formulating comprehensive financial policies.
The following list provides links to general information regarding various types of financial policies and example policies (Word format) used by cities and towns that can serve as a reference for developing financial policies tailored for your own community.
- Cash Receipts Policies
- Credit Card and Purchasing Card Policies
- Debt Policies
- Fraud Policies
- Fund Balance Policies
- Investment Policies
- Purchasing Policies
- User Fee Policy
- Other Policies
Special thanks to the following New Hampshire municipalities that provided their financial policies for inclusion in the publication and on this website: Amherst, Bedford, Bow, Claremont, Concord, Conway, Derry, Dover, Enfield, Goffstown, Greenfield, Hanover, Henniker, Hooksett, Keene, Laconia, Lebanon, Littleton, Londonderry, Nashua, Newton and Windham. Thanks also to the City of San Luis Obispo, CA, for permission to include their user fee policy.
For more information regarding financial polices, refer to LGC’s Basic Financial Policies: A Guide for New Hampshire Cities and Towns, 2009 edition, or contact LGC's Government Finance Advisor.