Page 426 - City of Westlake FY20 Budget

Section 12 Appendix
Glossary of Terms

• Expenses: Outflow of enterprise carrying on specific activities or • General Obligation Bonds: Bonds
funds paid or to be paid for an asset attaining certain objectives in sold and guaranteed by the Town, in
obtained or goods and services accordance with special regulations, which the full faith and credit of the
obtained. restrictions, or limitations. Town is pledged for repayment.

• Fiscal Policy: The Town’s policies • Fund Accounting: A governmental • Governmental Funds: The funds
with response to spending and debt accounting system that is organized through which most governmental
management as they relate to and operated on a fund basis. functions typically are financed. The
government services, programs, and acquisition, use, and financial
capital investments. • Fund Balance: The excess of a fund's resources and the related current
current assets over its current liabilities are accounted for through
• Fiscal Year: A 12-month period to liabilities, sometimes called working governmental funds (General, Special
which the annual operating budget capital or fund equity. A negative Revenue, Capital Projects, and Debt
applies and at the end of which a fund balance is often referred to as a Service Funds).
government determines its financial deficit.
position and the result of its • Goal: Generalized statements of
operations. The Town of Westlake’s • GAAP-Generally Accepted where an organization desires to be
fiscal year begins each October 1st Accounting Principles: Uniform at some future time regarding certain
and ends the following September minimum standards and guidelines operating elements (e.g. financial
30th. for financial accounting and condition, service levels provided,
reporting. They govern the form and etc.)
• Fixed Assets: Assets of a long-term content of the financial statements of
character, which are intended to an entity. GAAP encompass the • Grant: A contribution by a
continue to be held or used, such as conventions, rules and procedures government or other organization to
land, buildings, improvements other necessary to define accepted support a function. Typically, these
than buildings, machinery, and accounting practice at a time. They contributions are made to local
equipment. include not only broad guidelines of governments from state or federal
general applications, but also detailed governments.
• Franchise Fee: A fee levied by the practices and procedures. GAAP
Town Council on businesses that use provide a standard by which to • Infrastructure: Basic public
Town property or right-of-way. This measure financial presentations. investments such as streets, storm
fee is usually charged as a percentage drainage, water and sewer lines,
of gross receipts. • GASB: Acronym for Government streetlights and sidewalks.
Accounting Standards Board, an
• Full-Time Equivalent (FTE): The independent, non-profit agency • Inter-fund transfer: The transfer of
measure of authorized personnel responsible for the promulgation of money from one fund to another.
often referred to as worker-years. accounting and financial reporting
The full time equivalent of 1 person procedures for governmental entities. • Investments: Securities and real
(1 FTE) approximately represents estate held to produce revenues in
2080 hours of work per year. • GFOA: Government Finance Officers the form of interest, dividends,
Association of the United States and rentals, or lease payments.
• Fund: A fiscal and accounting entity Canada
with a self-balancing set of accounts • ISO: Insurance Service Office. The
recording cash and other financial • General Fund: The fund used to system to determine the rating of a
resources, together with all related account for all financial resources fire department. A scale of 1 to 10,
liabilities and residual equities or except those required to be with 1 being the best score. This ISO
balances, and changes therein, which accounted for in another fund. The rating schedule examines many
are segregated for the purpose of General Fund is tax supported. factors relating to local fire

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