Page 129 - Pantego FY22 Operating Budget

Cash Accounting – A basis of accounting in which transactions are recorded when cash is either
received or expensed for goods and services.

Cash Management – The management of cash necessary to pay for government services which invest
temporary cash excesses in order to earn interest revenue. Cash management refers to the activities
of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment,
establishing and maintaining banking relationships, and investing funds in order to achieve the highest
interest and return available for temporary cash balances.

Current Taxes – Taxes that are levied and due within one year.

Debt Margin – The difference between the maximum amount of debt that is legally permitted and the
amount of debt outstanding subject to the limitation.

Debt Service – The Town’s obligation to pay the principal and interest of all bonds and other debt
instruments according to a pre-determined payment schedule.

Debt Service Fund – A fund established to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest. This fund may also be called a Sinking Fund.

Deficit – (1) The excess of the liabilities of a fund over its assets; (2) the excess of expenditures over
revenues during an accounting period; or, in the case of proprietary funds, the excess of expenses over
income during an accounting period.

Delinquent Taxes – Taxes remaining unpaid on and after the date on which a penalty for non-payment
is attached.

Department – An organizational unit which has the responsibility of proving programs, activities and
functions in a related field.

Depreciation – The process of estimating and recording the lost usefulness, expired useful life or
decrease of service from a fixed asset that cannot or will not be restored by repair and will be replaced.
The cost of the fixed asset’s lost usefulness is the depreciation or the cost to reserve in order to replace
the item at the end of its useful life.

Disbursement – Payment of goods and services in cash or by check.

Division – An administrative segment of the Town, which indicates management responsibilities for an
operation or a group of related activities within a functional area. Divisions are basic units of the budget
upon which departments are composed.

Encumbrances – The pledge to expensed appropriated funds to purchase an item or service. To
encumber funds means to set aside funds for future expenditures.

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