Page 298 - Benbrook FY2021

BUDGET GLOSSARY

The 2020-21 Annual Budget contains specialized and technical 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.

ACCOUNT A code designed for convenience in referencing classification information for computer operations. The
code specifically designates character and object code information.

ACCRUAL ACCOUNTING A basis of accounting in which revenues are recognized in the period in which they are earned and
become measurable, and expenses are recognized in the period incurred instead of when cash is actually
received or spent. For example, in accrual accounting, revenue that was earned between January 1
and March 31, but for which payment was not received until April 15, is recorded as being received on
March 31 rather than on April 15.

ACTIVITY CLASSIFICATION Expenditure classification according to the specific function performed by the organizational units.

APPROPRIATION A legal authorization made by the City Council that permits the City to make expenditures and to incur
obligations for specific purposes. An appropriation is usually limited in amount and to the time period
in which it may be expended.

APPROPRIATION ORDINANCE The official enactment by the City to establish legal authority for City officials to obligate and to expend
resources.

APPRAISED VALUE The estimated value of a piece of property for the purpose of taxation.

ASSESSED VALUATION A value that is established for real or personal property for use as a basis for levying property values.
(Note: Property values in the City of Benbrook are established by the Tarrant Appraisal District).

AUDIT A comprehensive investigation of the manner in which the government's resources were actually utilized.
The audit can be classified as a financial audit or a performance audit. A financial audit is a review of
the accounting system and related financial information to determine how government funds were spent
and whether expenditures complied with the legislative body's appropriations. A performance audit
consists of a review of how well the government met its stated goals.

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