Page 547 - FortWorthFY22AdoptedBudget

Glossary and Acronyms

Glossary

The Annual Budget and Program Objectives document contains specialized and technical terminology that is
unique to public finance and budgeting. To help both city departments and citizens understand the terminology
used during the budget process, this glossary is provided as a reference.

Account: A seven-digit numerical code of which the first character defines the specific classification of dollar
values in the financial records, i.e., assets, liabilities, equities, revenues, and expenditures/expenses. The
remaining digits provide a further breakdown of account types into specific character and object groupings.

Accounting System: The methods and records established to identify, assemble, analyze, classify, record, and
report a government's transactions and to maintain accountability for the related assets and liabilities.

Accrual Basis of Accounting: A basis of accounting under which transactions are recognized when they occur,
regardless of the timing of related cash flows. For example, in accrual accounting, revenue that was earned on
April 1, but for which payment was not received until July 10, is recorded as revenue on April 1st regardless of the
timing of when the payment is received.

Activity: Activities are the major tasks performed to create outputs. One or more activities could be deemed
critical for achieving Council goals.

Ad Valorem Tax: A tax based on value (e.g., a property tax).

Agency Fund: A fund is normally used to account for assets held by a government as an agent for individuals,
private organizations, or other governments and/or other funds.

Annual Financial Report (AFR): Previously known as the Comprehensive Annual Financial Report until FY 2021,
this document is a thorough and detailed presentation of a government’s financial condition. It reports on the
government’s activities and balances for each fiscal year. The AFR is presented in three sections: 1. introductory
section – includes a transmittal letter with a financial overview, discussion of the overall economy, and
organization charts of the entity. 2. Financial Section – includes the independent auditor’s report, management’s
discussion and analysis, government-wide financial statements, notes to the financial statements, required
supplemental information, combining financial statements and schedules. 3. The statistical section – includes
additional financial, economic, and demographic information on a multi-year basis.

Appraisal Cap: Limitation on value increases of residential homesteads from year to year.

Appraised Value: Either the market value or value is determined by using another method of valuation according
to the Property Tax Code Chapter 23.

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 the time in which it may
be expended.

Appropriation Ordinance: The official enactment by the City Council to establish legal authority for city officials
to obligate and expend resources.

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