Page 438 - Bedford-FY22-23 Budget

Policies: Financial policies are used to enable the City to achieve a sound nancial position. They are updated and
Financial
endorsed by the City Council on an annual basis.
Year: The time period designated by the City signifying the beginning and ending period for recording nancial
Fiscal
transactions. The City of Bedford has designated this period to be October 1 through September 30.
Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions
or circumstances.
Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service
costs or interest on loans.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identi ed
activities or attaining certain objectives in accordance with speci c regulations, restrictions, or limitations.

Fund Accounting: Organizing nancial records into multiple, segregated locations for money. A fund is a distinct entity within
the municipal government in which nancial resources and activity (assets, liabilities, fund balances, revenues, and
expenditures) are accounted for independently in accordance with speci c regulations, restrictions or limitations. Examples of
funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the
Uniform Municipal Accounting System (UMAS) use multiple funds.
Fund Balance: The difference between a governmental fund’s assets and liabilities, divided into 5 categories: 1) Nonspendable,
2) Restricted, 3) Committed, 4) Assigned, 5) Unassigned. Portions of the fund balance may be reserved for various purposes
such as contingencies or encumbrances at the end of the scal year.

Type: In governmental accounting, all funds are classi ed into eight fund types: General, Special Revenue, Debt Service,
Fund
Capital Projects, Special Assessment, Enterprise, Internal Service, and Trust and Agency.
GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form
and content of governmental nancial statements. GASB 34 requires a report on overall nancial health, not just on individual
funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as
bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's nancial performance,
trends and prospects for the future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account
for and report other post employment bene ts in its accounting statements. Through actuarial analysis, municipalities must
identify the true costs of the OPEB earned by employees over their estimated years of actual service.

General Fund: The fund used to account for all nancial resources except those required to be accounted for in another fund.
The General Fund is tax supported and includes most of the basic operating services, i.e., police, re, streets, parks and
recreation, and administration.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and
credit of its taxing authority.

(G . A . A .P.): Detailed accounting standards and practices for state and local
Generally Accepted Accounting Principles
governments as prescribed by the Governmental Accounting Standards Board (GASB).
GFOA : The Government Finance Of cers Association of the United States and Canada. The mission of the GFOA is to enhance
and promote the professional management of governments for the public bene t by identifying and developing nancial
policies and best practices and promoting their use through education, training, facilitation of member networking, and
leadership.

Governing Body: A board, committee, commission, or other executive or policymaking body of a municipality or school district.

Governmental Funds: Applies to all funds except for the pro t and loss funds (e.g., enterprise fund).

Grant: A contribution by a government or other organization to support a particular function.

City of Bedford, TX | Adopted Budget FY 2023 Page 438