2009-10 Adopted Budget - City of Hoquiam

APPENDIX B2009-2010 Operating and Capital BudgetGlossary of TermsACCOUNT GROUPS: Accounting entities used to establish control over accountabilityfor the government’s general fixed assets and the unmatured principal of its generallong-term debt, including special assessment debt for which the government isobligated in some manner. The most common groups are called, General Long TermDebt Accounting Group (GLTDAG) and, General Fixed Assets Account Group(GFAAF).ACCOUNTING SYSTEM: The total set of records and procedures which are used torecord, classify, and report information on the financial status and operations of anentity.ACCOUNTS PAYABLE: A short-term liability account reflecting amounts owed toprivate persons or organizations for goods and services received by a government.ACCOUNTS RECEIVABLE: An asset account reflecting amounts due from privatepersons or organizations for goods and services furnished by a government (but notincluding amounts due from other funds or other governments).ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenuesare recorded when they are earned (whether or not cash is received at that time) andexpenditures are recorded when goods and services are received (whether cashdisbursements are made at that time or not).ACCUMULATED DEPRECIATION: A contra-asset account used to report theaccumulation of periodic credits to reflect the expiration of the estimated service life offixed accounts.AD VALOREM TAX: A tax levied on the assessed value of real property.AGENCY FUND: A fund used to account for assets held by a government as an agentfor individuals, private organizations, other governments and/or other funds.ALLOCATION: To set aside or designate funds for specific purposes. An allocationdoes not authorize the expenditure of funds.AMORTIZATION: (1) The portion of the cost of a limited life or intangible asset chargedas an expense during a particular period. (2) The reduction of debt by regularpayments of principal and interest sufficient to retire the debt by maturity.ANNUAL DEBT SERVICE: The amount required to be paid in any calendar year for (1)interest on all parity bonds then outstanding; (2) principal of all Parity Bonds thenoutstanding, but excluding any outstanding term bonds, and (3) payments into anySinking Fund Account for the amortization of outstanding parity bonds divided by thenumber of calendar years to the last maturity or mandatory redemption date thereof.ANNUAL FINANCIAL REPORT: (AFR) The official annual report of a government. Itincludes (a) the five combined financial statements in the combined statements -overview and their related noted and (b) combined statements by fund type andindividual fund and account group financial statements prepared in conformity withGAAP and organized into a financial reporting pyramid. It also includes supporting240