Page 135 - TownofWestlakeFY25BudgetOrd1005

Audit: An examination, usually by an official or a private accounting firm retained by the Town Council, of
organization financial statements and the utilization of resources.

Balance Sheet: The basic financial statement, which discloses the assets, liability, and equities of an entity at a
specific date in conformity with General Accepted Accounting Principles.

Balanced Budget: A budget adopted by the Town Council and authorized by resolution where the proposed
expenditures are equal to or less than the proposed revenues plus fund balances.

Basis of Accounting: A term used to refer to when revenue, expenditures, expenses, and transfers – and related
assets and liabilities – are recognized in the accounts and reported in the Town’ s financial statements.

Bond: A written promise to pay a specified sum of money, called the face sum of money, called the principal
amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a
specified rate.

Bond Covenant: A legally enforceable agreement with bondholders that requires the governmental agency selling
the bond to meet certain conditions in the repayment of the debt.

Bond Ordinance: A law approving the sale of bonds that specifies how proceeds may be spent.

Bond Funds: Resources derived from issuance of bonds for financing capital improvements.

Budget: The Town's financial plan for a specific fiscal year that contains an estimate of proposed expenditures and
the proposed means of financing them.

Budget Amendment: A revision of the adopted budget that, when approved by the Council, replaces the original
provision.

Budget Calendar: Schedule of key dates which the Town follows in the preparation and adoption of the budget.

Budget Document: Instrument used by the budget-making authority to present a comprehensive financial plan of
operations to the Town Council.

Budgetary Control: The control or management of the organization in accordance with an approved budget for
keeping expenditures within the limitations of available appropriations and revenues.

Capital Expenditures: Any major non-recurring expenditure or expenditure for facilities, including additions or
major alterations, construction of highways or utility lines, fixed equipment, infrastructure or similar expenditures.

Cash Basis: A basis of accounting under which transactions are recognized when cash changes hand.

Certificates of Obligations ( CO): Similar to general obligation bonds except certificates require no voter approval.

Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.

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