2009-10 Adopted Budget - City of Hoquiam

APPENDIX B2009-2010 Operating and Capital BudgetGlossary of Termsschedules necessary to demonstrate compliance with finance-regulated legal andcontractual provisions, required supplementary information, extensive introductorymaterial and a detailed statistical section.APPROPRIATION: An authorization made by the City Council which permits officials toincur obligations against and to make expenditures of governmental resources.Appropriations are usually made for fixed amounts and are typically granted for a oneyear period.APPROPRIATIONS ORDINANCE: The official enactment by the City Councilestablishing the legal authority for City officials to obligate and expend resources.ASSESSED VALUATION: The estimated value placed upon real and personal propertyby the Snohomish County Assessor as the basis for levying property taxes.ASSETS: Property owned by a government which has monetary value.AUDIT: A systematic examination of resource utilization concluding in a written report.It is a test of management’s internal accounting controls and is intended to:♦ Ascertain whether financial statements fairly present financial position and results ofoperations;♦ Test whether transactions have been legally performed;♦ Identify areas for possible improvements in accounting practices and procedures;♦ Ascertain whether transactions have been recorded accurately and consistently; and♦ Ascertain the stewardship of officials responsible for governmental resources.AUDITOR’S REPORT: In the context of a financial audit, a statement by the auditordescribing the scope of the audit and the auditing standards applied in the examination,and setting forth the auditor’s opinion on the fairness of presentation of the financialinformation in conformity with generally accepted accounting practices or some othercomprehensive basis system of accounting.AV: Assessed Valuation is the fair market value of both real property (land andbuildings) and personal property in the City as determined by the Grays Harbor CountyAssessor for the purpose of computing property taxes.B&O TAX: Business and Occupation Tax. The B&O Tax is a gross receipts tax. Thismeans a tax imposed on or measured by the value of products, the gross income of thebusiness, or the gross proceeds of sales, as the case may be, and that is the legalliability of the business.BALANCE SHEET: A statement presenting the financial position of an entity bydisclosing the value of its assets, liabilities, and equities as of a specified date.BARS: The Budgeting Accounting and Reporting System which must be followed eachCity in Washington.241