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Exam 1 Gov Acc
Chapter 3
| Term | Definition |
|---|---|
| Balanced budget | revenues and amoutns available from perviously accumulated fund balance equal the appropriations. States and municipalities required |
| operating budget | day to day activities, annual or biennial, general fund, public safety, education, recreation |
| capital budget | acquisition of long-lived resources, land, buildings, equipment |
| operating revenues | estimated amounts to be recieved from each revenue source |
| operating expenditures | provides info on specific purpose of services performed by each operating unit |
| capital budgets and plans | articulate plans of expenditures for long-lived assets and the means of financing them |
| Budegetary approaches | object-of-expenditure, performance and planning-programming-budgeting, zero-based budgeting |
| object-of-expenditure | traditional/ line item appraoch, every expendtire described in terms of physical good or service, suited for typical method of budget prep |
| zero-based budgeting | start at zero and move on up, very few companies use because very time consuming |
| Budget process | continous cycle where evaluation of current-year performance affects next years budget, lengthy and formal process that takes several months |
| Service Efforts and Accomplishments (SEA) | shows what they expect to accomplish during the year. Data includes: description of function, inputs (service efforts), outputs (quantities), outcomes (results) |
| Raising revenue | Income tax, sales tax, license fees, and property taxes |
| permanent tax | assessed value x flat tax rate |
| miliage rate | assessed value x total millage rate / 1000 (less) rollback/homestead |
| cash forecasts | revenues and expenditures spread out through the year, anticipate shortages and surpluses |
| Budget execution process | budget balance beginning and end, can't spend more than appropriated, some states it's only overall total that cannot be exceeded, monthly and quartely reports help |
| Revenue classification | revenues budgeted and accounted for at minimum by fund and source within the fund. EX: taxes, charges for services, fines, interest on investments |
| Expenditure classification | fund, function/program, organizational unit, activity, object |
| Fund | General fund |
| Function/program | Public safety |
| organizational unit | police department |
| activity | police field services |
| object | overtime wages |
| Recording adopted budget | DR estimated revenues CR approporations CR budegetary fund balance |
| Adopted budget | Establish refrence points for budgetary controls |
| Budget interchange | authorization for a department to spend an additional amount simultaneous reduction in speding in another area |
| Recording budget interchange | DR appropriations account that you take out of CR other appropriations accout |
| Budget revision | changes in the original budet other than a budgetary interchange |
| Recording budget revision | DR budgetary fund balance CR appropriations |
| Encumbrance | Reduces amount available for appropration for items ordered by government by not recieved. Occurs when entering into a contract or by placing a purchase order |
| Recording encumbrances | DR emcumbrances CR budgetary fund balance reserved for encumbrances |
| Reversing encumbrances | Occurs when ordered items are recieved. Expenditure is also recorded. When reversing must be same as orignial entry but voucher changes |
| Recording reversing encumbrances | DR Budgetary fund balance reserved for encumbrances CR encumbrances DR Expenditures CR Vouchers payable (or cash) |
| Allotment systems | central bydget office doles out the appropriations by subdivigind them into time based allotments usually for a quarter at a time |
| Recording allotment systems | DR estimated reveneus CR unalloted appropriations CR budgetary fund balance DR Unalloted appropriations CR allotments |
Created by:
omckenna52
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