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Glossary

Accrual Basis of Accounting

A basis of accounting in which revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period in which
they are incurred.

Account

A term used to identify an individual asset, liability, expenditure control, revenue control, encumbrance control, or fund balance.

Accounting Unit

An accounting unit is a distinct reporting or posting level within the City’s general ledger. Accounting units may represent a department, division, or specific
function within a division.

Accounts Payable

A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government.

Accounts Receivable

An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government.

Accrual Accounting

A basis of accounting in which revenues are recognized in the period in which they are earned and become measurable, and expenses are recognized in the
period incurred instead of when cash is actually received or spent.

Adopted Budget

The budget as modified and finally approved by the City Council. The adopted budget is authorized by an ordinance that sets the legal spending limits for the
fiscal year.

Ad Valorem Tax

A tax levied on the assessed valuation of land and improvements.

Appraisal District

The Appraisal District is a legal entity that has been established in each Texas County by the State legislature for the purpose of appraising all property within
the county or district. All taxing units within a county or district use the property values certified by that Appraisal District. The City of Grand Prairie has properties
in four (4) counties, each with its own Appraisal District: Dallas County Appraisal District (Dallas CAD), Ellis County Appraisal District (Ellis CAD), Johnson
County Appraisal District (JCAD), and Tarrant Appraisal District (TAD). Each Appraisal District is governed by a board of directors, whose members are
appointed by the individual taxing units within the district.

Appraised Value

The estimated value of a property for the purpose of taxation, as established by the Appraisal Districts.

Appropriation

An authorization made by the City Council that permits officials to incur obligations against and to make expenditures of resources. Appropriations are normally
made for fixed amounts at the department level and cover the operating budget for a one-year period.

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