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GLOSSARY OF TERMS <br />ACCOUNT: A term used to. identify an individual asset, iiabiliity, expenditure control, revenue control, <br />or fund balance. <br />ACCOUNTS PAYABLE: Amounts owed. to others for goods or services received. <br />ACCOUNTS RECEIVABLE: Amounts due from others for goods furnished or services rendered. <br />ACCOUNTING SYSTEM: The total set of records and procedures which are. used -to record, classify <br />and report information on financial status and operations of an entity. <br />ACCRUAL BASIS OF ACCOUNTING` The method of accounting under which revenues are recorded <br />when they are earned and expenditures are recorded when. goods and. services are received. <br />ACTIVITY: A specific and distinguishable line of work performed by one or more organizational <br />components of a governmental unit for the purpose of accomplishing a function. for which the <br />governmental unit is responsible. For example "Code Enforcement is an acti.vityperformed in the <br />discharge of the "Public Safety" function. <br />ADO.PTION:. The formal action .taken by the. Town Board to authorize or approvethe budget. <br />Ad VALOREM: In proportion to value. A basis for levying taxes upon property. <br />AGENCY FUND: A fund consisting of resources received and held by the governmental unit as an <br />agent for others or other funds of the governmental unit. <br />APPROPRIATION: An authorization granted by a. legislative body to make. expenditures and to incur <br />obligations for specific purposes. An appropriation is limited in amount to the time it may be: expended. <br />ASSESSED VALUATION: Value placed upon real estate or other property as a basis for levying <br />taxes. <br />ASSESSMENT.$: Charges made to parties for actual services or benefits received. <br />.ASSETS: Property owned by a governmental unit, which }gas a monetary value. <br />AUDIT: The examination af.documents, records,. reports; systems of internal control, accounting <br />and financial procedures, and other evidence for one or more of the following purposes:. <br />[a} To ascertain whether the statements prepared from the accounts. present fairly the <br />financial position and the results of financial operations ofthe constituentfunds and <br />balanced account groups of the governmental unit in accordance with generally <br />accepted accounting principals applicable to governmental units and on a basis <br />consistent with that of the preceding year. <br />(b) To determine. the propriety, legality and mathematical accuracy of a governmental <br />units financial transactions. <br />(c) To. ascertain .whether all financial transactions have been properly recorded. <br />(d) To ascertain :the stewardship of public officials who handle and are .responsible for <br />the financial resources of a governmental .unit. <br />64 <br />