Page 316 - CityofWataugaAdoptedBudgetFY24

GLOSSARY OF TERMS

Enterprise Fund: A governmental accounting fund in which the services provided are financed and
operated similarly to those of a private business. The rate schedules for these services are
established to ensure that revenues are adequate to meet all necessary expenditures. Two
Enterprise Funds are established for Watauga - one for storm drainage maintenance and one for
Water and Wastewater Operations.

Estimated Revenue: The amount of projected revenues to be collected during the fiscal year.

Exempt: Personnel not eligible to receive overtime pay and who are expected to work whatever
hours are necessary to complete their job assignments.

Expenditure: Decreases in net financial resources. Expenditures include current operating
expenses, which may require the present or future use of net current assets, debt service, and capital
outlay.

Expenses: This term refers to the outflows or other using up of assets or incurrence of liabilities from
rendering services or carrying out other activities that constitute the City’s major operations.

Fiduciary Fund: A fund used to report and record assets held in trust or as in an agency capacity
for others.

Financial Policies: Financial policies are used to enable the City to achieve a sound financial
position. They are in writing and are periodically updated and endorsed.

Fiscal Year: The 12-month period covered by the budget. For the City of Watauga, the fiscal year
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begins October 1 and ends September 30 .

Fixed Assets: Assets of long-term character, which are intended to continue to be held or used,
such as buildings, infrastructure, machinery, and equipment.

Franchise Fee: Fees levied by the City in return for granting a privilege, which permits the continual
use of public property, such as city streets, in providing their services to the citizens of the community.

Full-Time Equivalent (FTE): Refers to the number of full-time employees, plus all part time and
seasonal employees pro-rated to full time increments.

Fund: A fiscal and accounting entity with a self- balancing set of accounts recording cash and
other financial resources along with all related liabilities and residual equities or balances and
related changes. These accounts are segregated for the purpose of carrying on specific activities
or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Fund Accounting: A governmental accounting system that is organized and operated on a fund
basis.

Fund Balance: The assets of a fund less liabilities, as determined at the end of each fiscal period.
Any reservations of fund balance are deducted to result in an “unreserved fund balance”.

Fund Type: In governmental accounting, all funds are classified into eight fund types: General,
Special Revenue, Debt Service, Capital Projects, Special Assessment, Enterprise, Internal Service,
and Trust and Agency.

GAAP: “Generally Accepted Accounting Principles” as determined through common practice or as
promulgated by the Governmental Accounting Standards Board (GASB), Financial Accounting
Standards Board (FASB), or various other accounting standard setting bodies.
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