BFPD FY26 GFOA Budget - Flipbook - Page 175
| GLOSSARY
Accrual Basis of Accounting—An accounting method where revenue or expenses are recorded
when a transaction occurs vs. when payment is received or made. The method follows the
matching principle, which says that revenues and expenses should be recognized in the same
period.
Appropriation—The act of setting aside money for a specific purpose in order to delegate cash
for the necessities of the government’s operations.
Assessed Valuation—The value placed on real estate or other property by the County Assessor
and the State for the purpose of levying taxes.
Audit—An official inspection of an individual's or organization's accounts, typically by an
independent body.
Balanced Budget—A balanced budget is a budget in which revenues are equal to expenditures.
Budget—An estimate of income and expenditure for a set period of time.
Budget Message—A formal presentation by the District’s Administration to the Board of
Trustees and the public that explains the budget in terms of goals to be accomplished and how
the budget relates to a comprehensive plan.
Buy-Back Fund—A non-major capital fund that includes the budget for the Sick Time Sell
Back and the Post Employment Health Plan (PEHP). These policies are included in the District’s
employee handbook.
(Sick Time Sell Back) In January of each year, any bargaining unit member may transfer any
sick time at 75% of the employee’s regular hourly pay rate to an account of the employee’s
choosing, subject to applicable withholdings. Upon retirement, any accumulated sick time still
on record is paid out in a lump sum at 75% of the employee’s regular hourly pay rate, subject to
applicable withholdings, to an account(s) of the employee’s choosing
(PEHP Plan) In January of each year, any bargaining unit member may transfer into PEHP any
sick time at 75% of the employee’s regular hourly pay rate. Upon retirement, any accumulated
sick time still on record is paid out in a lump sum at 75% of the employee’s regular hourly pay
rate, subject to applicable withholdings, to an account(s) of the employee’s choosing.
Capital Expenditure—Items over $1,000 that have a useful life of more than 1 year.
Capital Project—A project to construct either new facilities, make significant, long-term
renewal improvements to existing facilities, or to make large purchases of equipment.
Chart of Accounts—A chart of accounts is a list of financial accounts set up, usually by an
accountant, for an organization, and available for use by the bookkeeper for recording
transactions in the organization's general ledger.
Component Unit—By definition, component units represent a legally separate organization that
a government or municipality is fiscally responsible for. Within the District’s accounting
practices, significant influence or accountability is based primarily on operational or financial
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