Fiscal Year (FY)
Since 1974, the Commonwealth and municipalities have operated on a budget cycle that begins July 1 and ends June 30. Since 1976, the federal government fiscal year has begun on October 1 and ended September 30. In each case, the designation of the fiscal year is that of the calendar year in which the fiscal year ends. Long-lived, tangible assets, such as buildings, equipment and land, obtained or controlled as a result of past transactions or circumstances. Costs legally or contractually mandated, such as retirement, FICA/Social Security, insurance, debt service, or interest on loans. The spending target imposed by DESE for each school district as the level necessary to provide an adequate education for all students. This target was first imposed by the Massachusetts Education Reform Act (MERA) of 1993. The number of resident students, including students attending charter schools and other school districts through the state’s School Choice program, enrolled on October 1 each year; this enrollment is used to determine the foundation budget for the community starting on July 1 of the subsequent fiscal year. Remaining, unrestricted funds from operations of the previous fiscal year, including unexpended free cash from the previous year, actual receipts in excess of revenue estimated on the tax recapitulation sheet, and unspent amounts in budget line items. Unpaid property taxes and certain deficits reduce the amount that can be certified as free cash. 8 Municipal Finance Glossary Department of Revenue/ Division of Local Services The calculation of free cash is based on the June 30 balance sheet, which is submitted by the community's auditor, accountant, or comptroller. Free cash is not available for appropriation until certified by the Director of Accounts. (See Available Funds) The ratio of the total number of paid hours during a period by the number of working hours in that pay period. Each employee's group schedule determines the total number of hours worked in a pay period. An accounting entity with a self-balancing set of accounts that is segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations. Within a fund, financial resources, and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently. Examples of funds include the general fund and enterprise funds.
Fixed Assets
Fixed Costs
Foundation Budget
Foundation Budget Enrollment
Free Cash
Full-Time Equivalent (FTE)
Fund
Fund Accounting
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