FY22 Financial Management
Our financial operations are governed by some important statutes and ordinances. In addition to those, we use well-established policies and internal controls to guide us. The tools we use help us maximize revenue, protect assets, track spending, and evaluate infrastructure needs. Read more about the tools we use in the sections below.
STRATEGIC FINANCIAL MANAGEMENTSTRATEGIC FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT PROGRAMS
The Citywide Analytics team and the Budget Office drive our performance management efforts. Performance measures exist to ensure that we deliver services effectively and efficiently. These tools help us identify pain points, and develop immediate and long-term improvements to create lasting change in the City.
Our efforts are summarized in CityScore. CityScore was designed to inform the Mayor, City managers, and the public about the quality of life and the performance of City government. It aggregates key performance metrics into one number.
An Energy Management Unit develops design standards and implements measures to create energy efficiencies in our new construction and capital improvement projects.
In Fiscal Year 2019, we began implementing improvements to save on utility costs for our facilities. The improvements happened under an initiative entitled “Renew Boston Trust.” Renew Boston Trust is not a trust in the traditional sense, but a program to bundle municipal utility cost savings projects. Read more about Renew Boston Trust.operational reviews
We engage in independent operational reviews and other efficiency-improving planning efforts. We use these measures to address areas needing renewed attention.
FUND STRUCTURE AND USES
The accounts of the City are organized on a fund basis. Each fund is considered a separate accounting entity and complies with finance-related legal requirements. The City’s funds are divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.PROPRIETARY FUNDS
Proprietary Funds are used to show activities that operate more like those of commercial enterprises.
- Internal Service Fund: accounts for the City’s self-insurance for health benefits.
Fiduciary funds account for resources held for the benefit of third parties and are not available to support the City’s own programs, including:
- Pension Trust Fund
- Other Post-Employment Benefits (OPEB) Liability Trust Fund
- Private Purpose Trust Funds.
- General Fund: accounts for all revenues, expenditures, and other financial resources, except those required to be accounted for in other funds. The only fund for which a budget is adopted.
- Special Revenue Fund: accounts for proceeds legally restricted for specific purposes.
- Capital Projects Fund: accounts for financial resources mainly from the issuance of bonds and used for acquisition or construction of major capital facilities.
- All non-major governmental funds in an “Other” category.