Page 436 - City of Bedford FY21 Budget

Efficiency: A type of performance measure relating inputs to outputs to express efficiency measures as
costs per unit of output and/or productivity per labor hour.

Encumbrances: Obligations in the form of purchase orders, contracts, or salary commitments that are
chargeable to appropriation and for which part of the appropriation is reserved. When paid, the
encumbrance is liquidated.

Enterprise Fund: A fund established to account for operations that are financed and operated in a manner
similar to private business enterprises -- where the intent of the governing body is that the costs of providing
goods or services to the general public on a continuing basis be financed or recovered primarily through user
charges. (See also Proprietary Fund.)

Expenditures: The outflow of funds paid or to be paid for assets obtained or goods and services obtained
regardless of when the expense is actually paid.

Financial Policies: Financial policies are used to enable the City to achieve a sound financial position.
They are updated and endorsed by the City Council on an annual basis.

Fiscal Year: The time period designated by the City signifying the beginning and ending period for
recording financial transactions. The City of Bedford has designated this period to be October 1 through
September 30.

Fund: An accounting device established to control receipt and disbursement of income from sources set
aside to support specific activities or attain certain objectives. Each fund is treated as a distinct fiscal entity
with a self-balancing set of accounts.

Fund Balance: The difference between a governmental fund’s assets and liabilities, divided into 5
categories: 1) Nonspendable, 2) Restricted, 3) Committed, 4) Assigned, 5) Unassigned. Portions of the fund
balance may be reserved for various purposes such as contingencies or encumbrances at the end of the fiscal
year.

Fund Type: In governmental accounting, all funds are classified into eight fund types: General, Special
Revenue, Debt Service, Capital Projects, Special Assessment, Enterprise, Internal Service, and Trust and
Agency.

General Fund: The fund used to account for all financial resources except those required to be accounted
for in another fund. The General Fund is tax supported and includes most of the basic operating services,
i.e., police, fire, streets, parks and recreation, and administration.

General Obligation (G.O.) Debt: Money owed on interest and principal holders of the City's general
obligation bonds. The debt is supported by revenue provided from real property that is assessed through the
taxation power of the local governmental unit.

Generally Accepted Accounting Principles (G.A.A.P.): Detailed accounting standards and practices for
state and local governments as prescribed by the Governmental Accounting Standards Board (GASB).

GFOA: The Government Finance Officers Association of the United States and Canada. The mission of the
GFOA is to enhance and promote the professional management of governments for the public benefit by
identifying and developing financial policies and best practices and promoting their use through education,
training, facilitation of member networking, and leadership.

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