Page 302 - Mansfieldr FY20 Approved Budget

BUDGET GLOSSARY

The Annual Budget contains specialized terminology that is unique to public finance and budgeting. To
assist the reader of the Annual Budget document in understanding these terms, a budget glossary has been
included in the document.

Accrual Accounting A basis of accounting in which debits and credits are recorded at
the time they are incurred as opposed to when cash is actually
received or spent. For example, in accrual accounting, revenue
which was earned between April 1 and June 30, but for which
payment was not received until July 10, is recorded as being
received on June 30 rather than on July 10.

Appropriations An authorization made by the City Council which permits the
City to incur obligations and to make expenditures of resources.

Appropriation Ordinance The official enactment by the City Council to establish legal
authority for City officials to obligate and expend resources.

Arbitrage The reinvestment of the proceeds of tax-exempt securities
in materially higher yielding taxable securities.

Assessed Valuation A value that is established for real or personal property for use
as a basis for levying property taxes. (Note: property values are
established by the Tarrant Appraisal District.)

Audit A comprehensive investigation of the manner in which the
government's resources were actually utilized. A financial audit
is a review of the accounting system and financial information to
determine how government funds were spent and whether
expenditures are in compliance with the legislative body's
appropriations. A performance audit consists of a review of
how well the government met its stated goals.

Balanced Budget Current appropriations in all funds are limited to the sum of
available unencumbered cash balances and revenues estimated
to be received in the current budget period.

Balance Sheet A financial statement that discloses the assets, liabilities,
reserves and balances of a specific governmental fund as of a
specific date.

Bond A written promise to pay a sum of money on a specific date at a
specified interest rate. The interest payments and the repayment
of the principal are detailed in a bond ordinance. The most
common types of bonds are general obligation and revenue
bonds. These are most frequently used for construction of large
capital projects, such as buildings, streets and bridges.

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