Financial Policies

The adoption of financial policies provides a number of benefits, even to smaller communities that may currently be content with the unwritten “way we’ve always done things” policy. First, adoption of financial policies helps to provide consistency, stability and continuity in the financial operations of the town. Second, having written policies provides a framework that helps 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. Third, the ability to rely on well-defined financial policies helps to resolve conflicts and to avoid allegations of bias or favoritism. And finally, the adoption of financial policies is just a good, sound business practice that fosters confidence in the fiscal operations of the municipality.

LGC’s publication, Basic Financial Policies: A Guide for New Hampshire Cities and Towns, explains in detail 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. To purchase this publication, visit the Publications page of this Web site.

The following pages contain example policies from various New Hampshire cities and towns, which have been provided as a reference to help communities in the development of financial policies that suit their specific needs. The links below provide access the example policies contained on the CD, as well as the checklist of items that should be covered in the policy.

• Cash Receipts Policies
• Investment Policies
• Purchasing Policies
• Credit Card and Purchasing Card Policies
• Debt Policies
• Fund Balance Policies
• Fraud Policies

(Note: Example policies and checklists are all Microsoft Word, Office 2000 documents.)

Special thanks to the following municipalities that provided their financial policies for inclusion in the guide, on the accompanying CD and on this Web site: Amherst, Bedford, Bow, Claremont, Concord, Conway, Dover, Enfield, Goffstown, Hanover, Henniker, Hooksett, Keene, Lebanon, Littleton, Londonderry, Merrimack, Nashua and Windham.

For more information on financial polices, refer to LGC’s Basic Financial Policies: A Guide for New Hampshire Cities and Towns, or contact LGC Government Finance Advisor Barbara Reid at 603.224.7447, ext. 145.

Cash Receipts Policies

• Cash Receipts Policy Checklist
• Cash Receipts Policy – Amherst
• Cash Receipts Policy – Bow
• Cash Receipts Policy – Dover

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Investment Policies

• Investment Policy Checklist
• Investment Policy – Concord
• Investment Policy – Enfield
• Investment Policy -- Hanover School Board
• Investment Policy – Hooksett
• Investment Policy for Trustees of Trust Funds – Dover
• Investment Policy for Trustees of Trust Funds – Merrimack

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Purchasing Policies

• Purchasing Policy Checklist
• Purchasing Thresholds Summary Chart [PDF Document]
• Purchasing Policy – Claremont
• Purchasing Policy – Concord
• Purchasing Policy – Conway
• Purchasing Policy – Dover
• Purchasing Policy – Henniker
• Purchasing Policy – Lebanon
• Purchasing Policy – Nashua
• Purchasing Policy – Windham

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Credit Card and Purchasing Card Policies

• Credit Card and P-Card Checklist
• Credit Card and P-Card Policy – Concord
• Credit Card and P-Card Policy – Dover
• Credit Card and P-Card Policy – Hanover
• Credit Card and P-Card Policy – Littleton

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Debt Policies

• Debt Policy Checklist
• Debt Policy – Concord
• Debt Policy – Dover
• Debt Policy – Londonderry

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Fund Balance Policies

• Fund Balance Policy Checklist
• Fund Balance Policy – Bedford
• Fund Balance Policy – Concord
• Fund Balance Policy – Dover
• Fund Balance Policy – Keene

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Fraud Policies

• Fraud Policy Checklist
• Fraud Policy – Dover
• Fraud Policy – Goffstown
• Fraud Policy – Littleton