FY25 GFOA Budget - Flipbook - Page 171
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GLOSSARY
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 relationships with the District (as distinct from legal relationships).
Per the District’s accounting team, there are no entities outside of primary government that
should be blended into or discretely presented with the District’s financial statements.
Debt—An obligation that requires one party, the debtor, to pay money or other agreedupon value to another party, the creditor. Debt is a deferred payment, or series of
payments, which differentiates it from an immediate purchase.
Deficit—When a fund’s excess of assets over liabilities are negative.
Enterprise Funds—These funds essentially encompass the same functions reported as
business-type activities in the governmental-wide statements. Services are provided to
customers external to the District organization, such as a golf course. The District does not
have enterprise funds at this time.
Expenditure (Expense)—An expense is an item requiring an outflow of money, or any
form of fortune in general, to another person or group as payment for an item, service, or
other category of costs.
Fiduciary—A fiduciary is an entity which holds a legal or ethical relationship of trust with
one or more other parties.
Fiscal Year—A year as reckoned for taxing or accounting purposes. At the District, the
fiscal year aligns with the Calendar Year (CY), which is a one year period that begins on
January 1st and ends on December 31st.
Full Time Equivalent (FTE)—A unit of measurement that indicates the workload of an
employed person. FTE is a full-time employee.
Fund—A fiscal and accounting entity with a self-balancing set of accounts recording cash
and other financial resources, together with all related liabilities and residual equities or
balances, and changes therein, which are segregated for the purpose of carrying on specific
activities or attaining certain objectives in accordance with special regulations, restrictions,
or limitations.
Fund Accounting—An accounting system for recording resources whose use has been
limited by the governing agency, or other individuals or organizations or by law. It
emphasizes accountability rather than profitability.
Fund Balance—A fund’s excess of assets over liabilities.
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