Page 644 - City of Bedford FY22 Budget
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Glossary


            A b a te m e n t:   A  r educt i o n  o r   el i m i nat i o n  o f   a  r eal   o r   per s o nal   pr o per t y   t ax,  m o t o r   v ehi cl e  exci s e,  a  f ee,  char g e,  o r   s peci al
            as s es s m ent   i m po s ed  by   a  g o v er nm ent al   uni t .  G rant ed  o nl y   o n  appl i cat i o n  o f   t he  per s o n  s eeki ng   t he  abat em ent   and  o nl y   by
            t he  co m m i t t i ng   g o v er nm ent al   uni t .

            A ccou n tin g  Syste m :   The  t o t al   s t r uct ur e  o f   r eco r ds   and  pr o cedur es   t hat   i dent i f y   r eco r d,  cl as s i f y ,  and  r epo r t   i nf o r m at i o n  o n  t he
            { nanci al   po s i t i o n  and  o perat i o ns   o f   a  g o v er nm ent al   uni t   o r   any   o f   i t s   f unds ,  acco unt   g r o ups ,  and  o r g ani zat i o nal   co m po nent s .

            A ccru a l A ccou n tin g :  A  bas i s   o f   acco unt i ng   i n  whi ch  r ev enues   ar e  r eco g ni zed  i n  t he  acco unt i ng   per i o d  i n  whi ch  t hey   ar e
            ear ned  and  expens es   ar e  r eco g ni zed  i n  t he  per i o d  i n  whi hc  t hey   ar e  i ncur r ed.
            A ccru e d  I n te re st:   The  am o unt   o f   i nt er es t   t hat   has   accum ul at ed  o n  t he  debt   s i nce  t he  dat e  o f   t he  l as t   i nt er es t   pay m ent ,  and
            o n  t he  s al e  o f   a  bo nd,  t he  am o unt   accr ued  up  t o   but   no t   i ncl udi ng   t he  dat e  o f   del i v er y   ( s et t l em ent   dat e) .  ( S ee  Int er es t )

            A d  Va lore m  T a x:  A  t ax  co m put ed  f r o m   t he  as s es s ed  v al uat i o n  o f   l and  and  i m pr o v em ent s .
            A m ortiz a tion :   The  g radual   r epay m ent   o f   an  o bl i g at i o n  o v er   t i m e  and  i n  acco r dance  wi t h  a  pr edet er m i ned  pay m ent   s chedul e.

            A p p rop ria tion :   A  l eg al   aut ho r i zat i o n  f r o m   t he  co m m uni t y ' s   l eg i s l at i v e  bo dy   t o   expend  m o ney   and  i ncur   o bl i g at i o ns   f o r
            s peci { c  publ i c  pur po s es .  An  appr o pr i at i o n  i s   us ual l y   l i m i t ed  i n  am o unt   and  as   t o   t he  t i m e  per i o d  wi t hi n  whi ch  i t   m ay   be
            expended. 

            A p p rop ria tion  O rd in a n ce :   The  o f { ci al   enact m ent   by   t he  Ci t y   Co unci l   es t abl i s hi ng   t he  l eg al   aut ho r i t y   f o r   Ci t y   o f { ci al s   t o
            o bl i g at e  and  expend  r es o ur ces .

            A rb itra g e :   As   appl i ed  t o   m uni ci pal   debt ,  t he  i nv es t m ent   o f   t ax-exem pt   bo nds   o r   no t e  pr o ceeds   i n  hi g her   y i el di ng ,  t axabl e
            s ecur i t i es .  S ect i o n  103  o f   t he  Int er nal   Rev enue  S er v i ce  ( IRS )   Co de  r es t r i ct s   t hi s   pract i ce  and  r equi r es   ( bey o nd  cer t ai n  l i m i t s )
            t hat   ear ni ng s   be  r ebat ed  ( pai d)   t o   t he  IRS .

            A rb itra g e  Re b a te :   A  r equi r ed  pay m ent   t o   t he  t axi ng   aut ho r i t y   ( Int er nal   Rev enue  S er v i ce)   due  t o   t he  exces s i v e  y i el d  ear ned  o n
            t he  g r o s s   pr o ceeds   o f   debt ,  abo v e  t he  bo nd  y i el d.

            A sse sse d  Va lu a tion :   A  v al ue  as s i g ned  t o   r eal   es t at e  o r   o t her   pr o per t y   by   a  g o v er nm ent   as   t he  bas i s   f o r   l ev y i ng   t axes .

            A sse ts:   Res o ur ces   o wned  o r   hel d  by   t he  Ci t y   t hat   hav e  m o net ar y   v al ue.

            A u d it:   An  exam i nat i o n  o f   a  co m m uni t y ' s   { nanci al   s y s t em s ,  pr o cedur es ,  and  dat a  by   a  cer t i { ed  publ i c  acco unt ant   ( i ndependent
            audi t o r ) ,  and  a  r epo r t   o n  t he  f ai r nes s   o f   { nanci al   s t at em ent s   and  o n  l o cal   co m pl i ance  wi t h  s t at ut es   and  r eg ul at i o ns .  The  audi t
            s er v es   as   a  v al uabl e  m anag em ent   t o o l   i n  ev al uat i ng   t he  { s cal   per f o r m ance  o f   a  co m m uni t y .

            A u d it Re p ort:   Pr epar ed  by   an  i ndependent   audi t o r ,  an  audi t   r epo r t   i ncl udes :  ( a)   a  s t at em ent   o f   t he  s co pe  o f   t he  audi t ;  ( b)
            expl anat o r y   co m m ent s   as   t o   appl i cat i o n  o f   audi t i ng   pr o cedur es ;  ( c)   { ndi ng s   and  o pi ni o ns .  It   i s   al m o s t   al way s   acco m pani ed  by
            a  m anag em ent   l et t er   whi ch  co nt ai ns   s uppl em ent ar y   co m m ent s   and  r eco m m endat i o ns .

            A va ila b le  Fu n d s:   B al ances   i n  t he  v ar i o us   f und  t y pes   t hat   r epr es ent   no n-r ecur r i ng   r ev enue  s o ur ces .  As   a  m at t er   o f   s o und
            pract i ce,  t hey   ar e  f r equent l y   appr o pr i at ed  t o   m eet   unf o r es een  expens es ,  f o r   capi t al   expendi t ur es   o r   o t her   o ne-t i m e  co s t s . 

            B a la n ce d  B u d g e t:   A  budg et   ado pt ed  by   t he  l eg s l at i v e  bo dy   and  aut ho r i zed  by   o r dnance  wher e  pr o po s ed  expendi t ur es   ar e
            equal   t o   o r   l es s   t han  t he  pr o po s ed  r ev enues .
            B a la n ce  Sh e e t:   A  s t at em ent   t hat   di s cl o s es   t he  as s et s ,  l i abi l i t i es ,  r es er v es   and  equi t i es   o f   a  f und  o r   g o v er nm ent al   uni t   at   a
            s peci { ed  dat e.
            B on d :   A  m eans   t o   rai s e  m o ney   t hr o ug h  t he  i s s uance  o f   debt .  A  bo nd  i s s uer/ bo r r o wer   pr o m i s es   i n  wr i t i ng   t o   r epay   a  s peci { ed
            s um   o f   m o ney ,  al t er nat el y   r ef er r ed  t o   as   f ace  v al ue,  par   v al ue  o r   bo nd  pr i nci pal ,  t o   t he  buy er   o f   t he  bo nd  o n  a  s peci { ed  f ut ur e
            dat e  ( m at ur i t y   dat e) ,  t o g et her   wi t h  per i o di c  i nt er es t   at   a  s peci { ed  rat e.  The  t er m   o f   a  bo nd  i s   al way s   g r eat er   t han  o ne  y ear .
            ( S ee  No t e)





                 City of Bedford, TX | Budget Book 2022                                                    Page 644
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