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h. Debt Service - The cash that is required for a particular time period to cover the
repayment of interest and principal on a debt. Debt Service is projected on an
annual basis.

i. Debt Service Fund – a fund established to accumulate resources and to account
for revenues and expenditures used to repay the principal and interest on debt.

j. Deferred Inflows of Resources – resources that flow into a fund during the fiscal
year, but are related to a future period. Deferred Inflows have a negative effect
on net position, similar to liabilities. (Examples include: property taxes levied in
the current year to finance the subsequent year’s budget.

k. Deferred Outflows of Resources - resources that flow out of a fund during the
fiscal year, but are related to a future period. Deferred Outflows have a positive
effect on net position, similar to assets. (Examples include: resources provided to
a grantee before the grantee has met related time requirements, but after all other
eligibility criteria have been met).

l. Department of Finance – includes the references in the City Charter to the
Department of Finance and the Department of Financial Management Services. For
purposes of this policy, the Department of Finance is the department responsible
for the corporate financial operations of the City.

m. Enterprise Fund - Proprietary fund type used to report an activity for which a fee
is charged to external users for goods or services.

n. Expenditure – refers to the value of goods and services received during a period
of time, regardless of when they are used (accrual basis of accounting) or paid for
(cash basis of accounting).

o. Expense - refers to the value of goods and services used during a period of time,
regardless of when they were received (modified accrual basis of accounting) or
paid for (cash basis of accounting).

p. Fiduciary Fund – A fund that accounts for resources that governments hold in
trust for other entities.

q. Fund Balance – Fund balance is the difference between (a) assets and deferred
outflows of resources and (b) liabilities and deferred inflows of resources. Fund
Balance is broken up into five categories:

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