Page 392 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget
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Section 12 Appendix
Glossary of Terms
Account: A separate financial Allocation: A part of a lump- accounting firm retained by the
reporting unit for budgeting, sum amount, which is Town Council, of organization
management, or accounting designated for expenditure by financial statements and the
purposes. All budgetary specific organization units utilization of resources.
transactions, whether revenue and/ or for special purposes,
or expenditure, are recorded in activities, or objects. Balance Sheet: The basic
accounts. financial statement, which
Amortization: Payment of discloses the assets, liability,
Activity: A service performed principal plus interest over a and equities of an entity at a
by a department or division. fixed period. specific date in conformity with
General Accepted Accounting
Accounts Payable: A liability Appraised Value: Either the Principles.
account reflecting amount of market value or value
open accounts owed to determined by using another Balanced Budget: A budget
private persons or organizations method of valuation according adopted by the Town Council
for goods and services to the Property Tax Code and authorized by resolution
received by a government ( but Chapter 23. where the proposed
not including amounts due to expenditures are equal to or
other funds of the same Appropriation: An authorization less than the proposed
government or to other made by the legislative body of revenues plus fund balances.
governments). a government, which permits
officials to incur obligations Basis of Accounting: A term
Accounts Receivable: An asset against and to make used to refer to when revenue,
account reflecting amounts expenditures of governmental expenditures, expenses, and
owed to open accounts from resources. Specific transfers – and related assets
private persons or organizations appropriations are usually and liabilities – are recognized
for goods or services furnished made at the fund level and are in the accounts and reported in
by the government. granted for a one-year period. the Town’ s financial statements.
Accrual Accounting: Appropriation Ordinance: The Bond: A written promise to pay
Recognition of the financial official enactment by the a specified sum of money,
effects of transactions, events, legislative body establishing the called the face sum of money,
and circumstances in the legal authority for officials to called the principal amount, at
period( s) when they occur obligate and expend a specified date or dates in the
regardless of when the cash is resources. future, called the maturity
received or paid. date(s), together with periodic
Assets: Resources owned or interest at a specified rate.
Adopted Budget: The budget held by the Town which has
as modified and finally monetary value. Bond Covenant: A legally
approved by the Town Council. enforceable agreement with
The adopted budget is Assessed Valuation: A value bondholders that requires the
authorized by resolution that that is established for real or governmental agency selling
sets the legal spending limits for personal property for use as a the bond to meet certain
the fiscal year. basis for levying property taxes. conditions in the repayment of
the debt.
Ad Valorem Tax: A tax based Audit: An examination, usually
on value ( e.g., a property tax) by an official or a private
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