GLOSSARY

 

ACCOUNTABILITY - The state of being obliged to explain one’s actions, to justify what one does.  Accountability requires governments to answer to the citizenry -- to justify the raising of public resources and the purposes for which they are used.

 

ACCOUNTS RECEIVABLE - An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments).

 

ACCRUAL BASIS - The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the government.

 

ACTIVITY - The smallest unit of budgetary accountability and control which encompasses specific and distinguishable lines of work performed by an organizational unit for the purpose of accomplishing a function for which the City is responsible.

 

AD VALOREM TAX - A tax based on value.  Property taxes in the City of Lewiston are ad valorem taxes.

 

APPROPRIATION - A legal authorization granted by the City Council to make expenditures and to incur obligations for purposes specified in the Annual Appropriation Ordinance.  An appropriation is limited in amount and to the time when it may be expended.

 

APPROPRIATION ORDINANCE - An ordinance authorizing the City’s annual appropriations by department within fund.

 

ARBITRAGE - Classically, the simultaneous purchase and sale of the same or an equivalent security in order to profit from price discrepancies.  In government finance, the most common occurrence of arbitrage involves the investment of the proceeds from the sale of tax-exempt securities in taxable money market instrument that yields a higher rate, resulting in interest revenue in excess of interest costs.

 

ASSESSED VALUATION - A valuation set upon real estate or other property by a government as a basis for levying taxes.  In the State of Idaho, counties are responsible for assessing property valuation.

 

AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities.  The auditor obtains this evidential matter through inspection, observation, inquiries and confirmations with third parties.

 

BOND - A written promise to pay a specified sum of money (called the principal) at a specific date in the future, together with periodic interest at a specific rate.  In the budget document, these payments are identified as debt service.  Bonds are used to obtain long-term financing for capital improvements.

 

BOND RATING - A rating from a schedule of grades indicating the probability of timely repayment of principal and interest of bonds issued.  These ratings are provided by four advisory services in the United States: Standard & Poor’s Co., Moody’s Investors Service, Fitch Investors Service, and White’s Ratings.  These ratings are a major influence on the interest that a borrowing government must pay on each bond issue.  The City has an A-1 rating from Moody’s Investor Service.

 

BUDGET - A plan of financial operation including an estimate of proposed expenditures for a given period and the proposed means of financing them.  Used without any modifier, the term usually indicates a financial plan for a single fiscal year.

 

BUDGET MESSAGE - A general discussion of the proposed budget as presented in writing by the budget-making authority to the legislative body.

 

BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues.

 

CAPITAL EXPENDITURES - Expenditures resulting in the acquisition of or addition to the government’s general fixed assets.

 

CAPITAL OUTLAY - Reflects the amount of funding for the acquisition of fixed assets that have a value of $250 or more and a useful life of more than three years.  In addition, any item that meets the life criteria and a cost of $50 may be capitalized at the discretion of the Department Manager and Finance Director.  This is for accountability of the asset by the Department.

 

CAPITAL PROJECTS FUND - A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).

 

CASH MANAGEMENT - The administration of temporarily idle cash so as to earn interest revenue while making sure sufficient cash is available for the timely payments of payrolls and invoices.

 

CEDA - Clearwater Economic Development Association.  Approved Economic Development Corporation responsibilities for economic planning and development for Region 2 in the State of Idaho.

 

CHARGES FOR SERVICE - Fees for service, generally not in excess of the cost of administration of a particular service or program.

 

COLLECTIVE BARGAINING AGREEMENT - A legal contract between the employer and a certified representative of a recognized bargaining unit for specific terms and conditions of employment, e.g., hours, working conditions, salary and wages, fringe benefits, and matters affecting health and safety of employees.

 

COMPENSATED ABSENCES - Absences, such as vacation, illness and holidays, for which it is expected employees will be paid.  The term does not encompass severance or termination pay, postretirement benefits, deferred compensation or other long-term fringe benefits, such as group insurance and long-term disability pay.

 

COMPLIANCE AUDITING - Auditing for compliance with applicable laws and regulations.  Tests of compliance with laws and regulations are substantive tests; therefore, the term “compliance auditing” should not be confused with the similar term “compliance testing,” which usually refers to testing for compliance with internal control procedures.

 

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) - The official annual report of a government.  It includes (a) the five combined financial statements in the combined statements -- overview and their related notes (the “liftable”GPFS) and (b) combining statements by fund type and individual fund and account group financial statements prepared in conformity with GAAP and organized into a financial reporting pyramid.  It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provision, required supplementary information, extensive introductory material and a detailed statistical section.  Every government reporting entity should prepare a CAFR.

 

CONSTRUCTION IN PROGRESS - A fixed asset account reflecting the cost of construction work for projects not yet completed.

 

CONTINGENCY - An appropriation of funds to cover unforeseen events that occur during the fiscal year.  The City Council must authorize the use of any Contingency appropriation.

 

CONTRACTUAL SERVICES - Services purchased by the City through contracts.

 

COVERED EMPLOYEE  -  A person in a position or classification that is covered by the provisions of the Fair Labor Standards Act (FLSA) as determined by the City Manager.

 

DEBT - All long-term credit obligations of the City whether backed by the City’s full faith and credit or by pledged revenues, and all interest-bearing short-term credit obligations.

 

DEFICIT - The excess of expenditures over revenues during a single accounting period.

 

DEPRECIATION - The expiration of the useful life of a fixed asset over a determined period of time attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence.

 

DIVISION - An organizational unit within a department.  Usually divisions are responsible for carrying out a major component of the department’s responsibilities.

 

DUE FROM OTHER FUNDS - An asset account used to indicate amounts owed to a particular fund by another fund for goods sold or services rendered.  This account includes only short-term obligations on open account, not interfund loans.

 

EMERGENCY MANAGEMENT - The office of Emergency Management is required by Idaho Code as a function of Nez Perce County to maintain a disaster agency and be responsible for the administration of the State Disaster Preparedness Act.  The Office shall be responsible for the preparation and implementation of an emergency preparedness plan for the City and the County.

 

EMPLOYEE BENEFITS - For budgeting purposes, employee benefits are employer payments for social security, retirement, group health and life insurance, and worker’s compensation.  These expenses are budgeted at the activity level.

 

ENCUMBRANCES - Commitments related to unperformed (executory) contracts for goods and services.  Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed.

 

ENTERPRISE FUND - A fund established to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.

 

EQUIPMENT REPLACEMENT SCHEDULE - A schedule of annual purchases to replace major equipment and vehicles that have met or exceeded their useful life to the City.

 

ESTIMATED REVENUE - The amount of revenues projected to be collected during the fiscal year.

 

EXEMPT EMPLOYEE - A person in a position or classification that is exempt from the provisions of the Fair Labor Standards Act (FLSA) as an executive, administrative or professional as determined by the City Manager.

 

EXPENDITURES - Decreases in net financial resources.  Expenditures include current operating expenses requiring the present of future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlements and share revenues.

 

F = FUNDED - Found only in the Objectives section.

 

FISCAL YEAR - A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations.  The time period that the City begins its annual operations from the first day of each October and ends on the last day of September of the succeeding year.

 

FIXED ASSETS - Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances.  Fixed assets include buildings, equipment, and improvements other than buildings and land.  In the private sector, these assets are referred to most often as property, plant and equipment.

 

FLEET MAINTENANCE FUND - A fund to provide a means of accounting for all costs related to the operation of the City’s vehicle maintenance and equipment replacement programs.  Revenues consist primarily of charges for vehicle repair within each departmental budget.

 

FRANCHISE FEE - A fee levied on a corporation in return for granting a privilege, sanctioning a monopoly, or permitting the use of public property.

 

FRINGE BENEFITS - Employee benefits mandated by state and federal law, union contracts, and/or Council policy.  The most common forms of fringe benefits are pension plans, health and life insurance, vacation, sick and holiday leave, deferred compensation, automobile allowances, disability insurance, and educational and incentive pay.

 

FUNCTION - A group of related activities aimed at accomplishing a major service or program for which a government is responsible.  For example, Administrative Services is a function.

 

FUND - A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and charges therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations.

 

FUND BALANCE - The difference between fund assets and fund liabilities of government and similar trust funds.

 

GENERAL GOVERNMENT FUNDS - Funds supported by property taxes and fees.

 

GENERAL FIXED ASSETS - Capital assets that are not assets of any fund, but of the government unit as a whole.  Most often these assets arise from the expenditure of the financial resources of governmental funds.

 

GENERAL FUND - The fund used to account for all financial resources, except those required to be accounted for in another fund.

 

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) - Uniform minimum standards and guidelines for financial accounting and reporting.  They govern the form and content of the financial statements of any entity.  GAAP encompasses the conventions, rules, and procedures necessary to define guidelines of general application, but also detailed practices and procedures.  GAAP provides a standard by which to measure financial presentations.  The primary authoritative body on the application of GAAP to state and local governments is the Generally Accepted Standards Board (GASB).

 

GOAL - The long-term continuing mission of a department, division or program.  Goals define the strategic results to be achieved and therefore indicate the relevance, permanence, scope, and effectiveness of that outcome.

 

 

GRANT - A payment from one level of government to another or from a government to a private organization.  Practically all Federal aid to state and local governments is in this form.  Grants are usually made for specified purposes, activity or facility.

 

HOMEOWNERS EXEMPTION - Pursuant to the Idaho State Code, 50 percent of the value of the home, up to a maximum of $50,000, which the owner occupies as principal residence is exempt from the property tax.

 

IMPACT FEES - Fees charged to developers to cover, in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development (e.g., parks, sidewalks).

 

INTERGOVERNMENTAL REVENUE - Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.

 

INTERIM BORROWING - (1) Short-term loans to be repaid from general revenues during the course of a fiscal year.  (2) Short-term loans in anticipation of tax collections, grants or bond issuance.

 

INTERNAL SERVICE FUND - A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost-reimbursement basis.

 

INVESTMENTS - Securities and real estate held for the production of revenues in the form of interest, dividends, rentals or lease payments.  The term does not include fixed assets used in government operations.

 

LAPSE - A term used in reference with automatic termination of an appropriation.  Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a certain period of time.  At the end of this period, any unexpended or unencumbered balance thereof lapse, unless otherwise provided by law.

 

LEASE PURCHASE AGREEMENT - A contractual agreement which is termed “lease”, but which in substance is a purchase contract.

 

LEVEL OF SERVICE - The existing or current services, programs and facilities provided by the government to its citizens.  The level of service may increase, decrease or remain the same depending upon needs, alternatives, and available resources.

 

LEVY - (1) (Verb) To impose taxes, special assessments or service charges for the support of government activities.  (2) (Noun) The total amount of taxes, special assessments or service charges imposed by a government.

 

LIABILITY - A debt or other legal financial obligation.

 

LICENSE AND PERMITS - Documents issued in order to regulate various kinds of businesses and other activity within the community.  A degree of inspection may accompany the issuing of a license or permit, as in the case of B & O licenses or building permits.  In most instances, a fee is charged in conjunction with the issuance of a license or permit, generally to cover all or part of the cost of administration.

 

MARKET VALUATION - A valuation set upon real estate or other property by the County Assessor as a basis for levying taxes.

 

NF = NOT FUNDED - Found only in the Objectives section.

 

OBJECTIVE - Desired output oriented accomplishments, which can be measured and achieved within a given time frame.  Achievement of the objective advances the activity and organization toward a corresponding goal.

 

 

OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them.  The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled.  The use of annual operating budgets is required by law.  Annual operating budgets are essential to sound financial management and should be adopted by every government.

 

ORGANIZATIONAL CHART - A graphic portrayal of relationships among positions, commissions and officials established by the City.

 

OVERLAPPING DEBT - The proportionate share of the debts of local governments located wholly or in part within the County, which must be borne by property within the County.

 

 

PART-TIME EMPLOYEE - A person employed in a regularly budgeted position to which a regular employee may be appointed, and whose normal work schedule is less than the standards hours of work.  Part-time employees shall be paid at the rate of the hourly equivalent of the range and step at which they are appointed.

 

PERSONAL SERVICES - Expenditures made for salaries, wages and employee benefits provided for all persons employed by the City.

 

PERSONNEL - Refers to the number of full-time, part-time/seasonal/temporary authorization positions in which seasons may be employed within the operation of the City.

PROGRAM BUDGET - A budget wherein expenditures are based primarily on programs of work and secondarily on character and object class.

 

PURCHASE ORDER - A document authorizing the delivery of specified merchandise or the rendering of certain services and the making of a charge for them.

 

PURCHASE REQUISITION - A written demand or request, usually from one department to the purchasing officer or to another department, for specified articles or services.

 

RECLASSIFICATION - The moving of an existing position from one personnel classification (title) to another based on a study by the Human Resources Department that the person is performing the duties of a classification other than that in which the employee is currently placed.

 

REGULAR EMPLOYEE - A person employed by the City in a full-time capacity in a budgeted position who has successfully completed the required probationary period and has been retained according to the provisions of the City of Lewiston Personnel Policy or the Collective Bargaining Agreement.

 

REVENUE BONDS - Bonds whose principal and interest are payable exclusively from earnings of an enterprise fund.  In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund’s property.

 

REVENUES - Increases in the current assets of a governmental fund type from other than expenditure refunds and residual equity transfers.

 

RISK MANAGEMENT - A process used by an organization to identify and measure the risks of accidental loss, develop and implement techniques for handling risk and to monitor results.  Techniques used may include self insurance, group insurance and loss control activities.

 

RISK MANAGEMENT FUND - To provide a means of accounting for all costs related to the City’s “self insurance” program.  The revenues consists of property taxes levied based on desired funding level.

 

SALARIES AND WAGES - Monetary compensation in the form of an annual or hourly rate of pay for hours worked.

 

SEASONAL/TEMPORARY EMPLOYEE - Any person appointed to an authorized temporary budgeted position established for a designated period of time or on an hourly, daily, weekly, seasonal or call-in basis not to exceed five (5) consecutive months of continuous hours worked.

 

SELF-INSURANCE - A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy.  It is sometimes accompanied by the setting aside of assets to fund any related losses.  Because no insurance is involved, the term self-insurance is a misnomer.

 

SERVICES AND CHARGES - Expenditures for services other than personal services which are required by the City in the administration of its assigned functions or which are legally or morally obligating on it; such as, contracted services, utilities, printing, advertising, insurance and rental of equipment.

 

SPECIAL REVENUE FUNDS - Used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

 

SUPPLIES AND MATERIALS - Articles and commodities which are consumed or materially altered when used; such as, office supplies, motor fuel, building supplies and postage.

 

SURPLUS - The amount by which the Government’s receipts exceed its budgeted outlays for given fiscal year.

 

SYSTEMS DEVELOPMENT FEES - Fees charged to join or to extend an existing utility system.  Syn.  TAP FEES, CONNECTION FEES, EQUITY BUY IN FEES.

 

TAX ANTICIPATION NOTES (TANS) - Notes issued in anticipation of the collection of taxes, usually retirable only from tax collections, and frequently only from the proceeds of the tax levy whose collection they anticipate.

 

TAXES - Compulsory charges levied by a government to finance services performed for the common benefit.  This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments.  Neither does the term include charges for services rendered only to those paying such charges (e.g., sewer service charges).

 

TAX LEVY ORDINANCE - An ordinance through which taxes are levied.

 

TAX RATE - The amount of tax stated in terms of a unit of the tax base.  The amount of tax levied for each $1.00 of market valuation.

 

TAX-RATE LIMIT - The maximum rate at which a government may levy a tax.  The limit may apply to taxes raised for a particular purpose or to taxes imposed for all purposes and may apply to a single government or to a class of governments operating in a particular area.  Overall tax-rate limits usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given area.

 

TRANSFER - Amounts distributed from one fund to finance activities in another fund.  Shown as an expenditure in the originating fund and a revenue in the receiving fund.

 

TRUST FUNDS - Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments and/or other funds.