Page 381 - FY 2021-22 ADOPTED BUDGET

BUDGET GLOSSARY

The 2021-22 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 A basis of accounting in which revenues are recognized in the
ACCOUNTING 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 Expenditure classification according to the specific function
CLASSIFICATION 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 The official enactment by the City to establish legal authority
ORDINANCE 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
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