BUDGET GLOSSARY City of DeSoto
The annual budget contains specialized and technical terminology that is unique to public finance and budgeting. To assist the reader in understanding these terms, this glossary has been included in the budget document.
Activity - A service performed by a department or division.
Accrual Basis of Accounting – A basis of accounting in which revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period in which they are incurred. For example, water revenues which, are billed in September, are recorded as revenues in September, even though payment in cash actually received in October. Similarly, services or supplies which have been received in September, but actually paid for by the City (expenses) in September. Accrual accounting is used for the City’s enterprise funds. Adopted Budget – The budget as modified and finally approved by the City Council. The adopted budget is authorized by ordinance, which sets the legal spending limits for the fiscal year.
Ad Valorem Tax – A tax levied on the assessed valuation of land and improvements.
Appropriation Ordinance – The official enactment by the City Council establishing the legal authority for City officials to obligate and expend resources.
Arbitrage – The simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.
Assessed Valuation - A valuation set upon real and personal property by the Dallas Appraisal District as a basis for levying taxes.
Assets – Resources owned or held by the City which have monetary value.
Audit – A professional examination of a company’s financial statement by a professional accountant or group to determine that the statement has been presented fairly and prepared using Generally Accepted Accounting Principles (GAAP). Balanced Budget – A budget adopted by the legislative body and authorized by ordinance where the proposed expenditures are equal to or less than the proposed revenues plus fund balances.
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