Glossary Flashcards
Apportionment
At the federal level this is OMBs approval to use a portion of the legislatively approved budgetary authority.
Appropriated Budget
Budget that has been passed by the legislative branch - has the effect of law
Appropriation
Legislative enactment that creates spending authority - the legal authority to incur expenses and spend money
Authorization
Legislative enactment that approves programs prescribes what activities an agency may pursue if funding is available
Block Grant
One type of formula grant. Block grants combine several service categories into one grant and thus allow maximum flexibility to the grantee to use the funds to meet local needs.
Capital Budget
Forecasts and controls spending for “big ticket” items that are acquired and used over a period of several years (i.e. construction). Used at state and local levels.
Capital Lease
A lease of real property that meets defined criteria requiring the government to report the property as if it were purchased with the proceeds of long-term debt.
Cash-Flow Budget
Forecasts the timing and amount of cash flows for a period. Used to project required cash levels.
Categorical Grant
One type of formula grant that can be used only for a narrowly defined purpose
Central Management Agencies
Governmental Agencies that provide central management services to other components (i.e. OMB).
Certificate of Excellence in Accountability Reporting (CEAR)
An AGA program that helps federal agencies and their components produce effective, high-qualities Performance and Accountability Reporting/Agency Financial Reports.
Certificate of Participation
Form of shared government financing. Several financial institutions share in a loan arrangement with a government entity.
Charter
Local government version of a constitution. States may provide for the establishment of local governments through charters
Checks and Balances
Process by which one branch of government can constrain the actions of the other branches. Flows from separation of powers.
Chief Financial Officers (CFO) Act
A 1990 law that among other provisions requires the federal governments major executive branch agencies to have a CFO. Prescribes duties and reporting requirements and requires audited financial statements.
Commission
Government component established by law, statues, or ordinance. May be permanent to temporary. Because it is established by law it may have greater autonomy and authority than government components that are administratively established (i.e. Federal Communications Commission (FCC))
Component
Organized unit of government such as agency, office, or department.
Consumption Tax
Broad category of tax that includes sales, use, excise, and value-added taxes.
Continuity of Operations
Efforts to ensure the organization can sustain essential operations, regardless of planned or unplanned incidents or disruptions
Covenant (bond)
Legal requirements pertaining to a specific bond issue. Typically defines the maturity date, revenue stream, interest rate and repayment schedule. May require a sinking fund and may specify conditions that must be met while the bonds are outstanding, and/or before new debt can be issued.
Debt
Money owed by the entity to individual or organizational creditors. Usually as a result of planned short or long term borrowing to finance government objectives. `
Dedicated Collections
Taxes levied or other revenues collected to finance a specific activity. Proceeds are deposited into a special account restricted to that activity (earmarked or restricted taxes)
Deficit
When government expenditures for a specific fiscal period exceed revenues and other financial resources inflows.
Discretionary Grant
A term used to mean project grant
Due Care
To discharge professional responsibilities with competence and diligence to the best of ones ability and with the same level of ability and skill as others in similar positions. It also means to act in the best interest of those served.
Earmarking
Variation on use of special funds. Revenue from specific taxes or other sources is set aside for specific actives. “Dedicated Collection” signify the legislature reserving a portion of an appropriation for a specific, limited purpose.
Enterprise Resource Planning (ERP) System
Major “end-to-end” computer system that links many functions and departments. Used to simplify and streamline financial management, and to integrate operations with financial management.
Excise Tax
Form of consumption tax levied on the the consumption of a particular type of good or participation in a certain type of activity.
Financial Management System
Organized means for the collection, processing, transmission and dissemination of financial information. Includes policies and procedures and trained personnel as well as any applicable computer hardware and software.
Formula Grant
An intergovernmental grant that includes Bothe categorical grants and block grants in which the amount of the grant is based on a formula contained in law or regulation that determines the total amount each recipient will receive if basic eligibility requirements are satisfied.
General Obligation Bonds
Form of government debt that is backed by the full faith and credit of the government. Contrast with revenue bonds.
Generally Accepted Government Auditing Standards (Yellow Book)
Issued by the Government Accountability Office (GAO) to define the expected levels of performance for the conduct of an audit or attestation of a government organization, program, activity, or function.
Governmental Accounting Standards Board (GASB)
Defines GAAP for state and local government entities.
Government Corporation
Quasi-government entity formed to support businesslike functions where operating expenses are expected to be covered through revenues and fees rather that appropriated budget authority
Government Performance and Results Act (GPRA)
1993 requires federal agencies to create long-term strategic plans. Followed by annual performance plans (performance budgets) and annual performance reports. Updated with the Government Performance and Results Modernization Act (2020)
Grant
Funds transferred from one level of government to another for specific or broad purposes
Independence
Free of relationships that may impair or appear to impair one’s ability to act with objectivity. Independence is the quality of being free of any obligation to particular parties or interests.
Initiative
Process that enables citizens to present their view of a problem and a proposed solution rather that depending on a solution devised and enacted by the legislative branch. Allows direct citizen action to affect laws.
Lease-Purchase
Practice by which a government entity issues a long-term lease on a capital asset and at the end of the lease period the asset may transfer to the government. Usually these long-term obligations do not require voter approval.
Management Cycle
The sequence of activities entailed in managing a government and/or its operations. The activities planning, programming, budgeting, operations, accounting, reporting, and auditing.
Note
Form of government debt used as a short-term financing source. Due to the short maturity period, the principle and interest for a not are frequently retired simultaneously upon maturity.
Object Class
A budget or accounting category that defines the resources to be applied to specific types of inputs (I.e. personnel, travel, tools or supplies.)
Objectivity
Imposes the obligation to be impartial intellectually honest, and free of conflicts of interest. Public officials are objective when they uphold the expectation of fairness, make decisions on merit, and do not allow prejudice or bias to influence their decisions or behavior.
Operating Budget
Defines level of resources to be applied in providing government programs and services.
Ordinance
Law enacted by a legislative body below the state level.
Performance and Accountability Report
A single report that combines financial results and performance results. Recent requirements for federal executive agencies, but may be practiced at other levels of government.
Performance Report
External report that indicates what has been accomplished with the resources consumed by a government
Popular Report
Condensed form of external financial report that provides basic financial information and other performance data in a short, easy-to-read format.
Popular Sovereignty
Principle that while governments are sovereign entities in a democracy, ultimate sovereignty rests with the people.
Project Grant ( Discretionary Grants)
Type of grant that provides funding for specific purposes for limited periods of time.
Quasi-governmental Entities
Entities that blend characteristics of governments and the private sector.
Recall
Process that enables voters to remove elected officials from office. Usually involves collecting signatures on a petition. If enough signatures are collected the proposal is put to the vote.
Referendum
Process which by certain legislative actions are presented to voters before taking effect
Reserved Clause
10th Amendment - the powers not delegated to the US by the constriction nor prohibited by it to the states are reserved to the states respectively or to the people.
Revenue Bond
Form of debt that is secured by a specific source of financing such as revenue from the project being funded. Contracts with general obligation bonds which are backed by the full faith and credit of government.
Serial Bonds
A bond issue featuring maturities, every year, over a period of several years. Contracts with term bonds in which the entire issue matures one the same date or near the same date.
Service Efforts and Accomplishments (SEA)
A generic term for a program to measure performance including inputs to government programs (such as financial resources, work hours, or supplies) and the outputs and outcomes achieved through application of those resources.
Shared Revenues
Usually associated with revenues sharing between the states and local governments. In most instances shared revenues funds are provides with few constraints so the local entities can use the funds as needed.
Sovereignty
Means passed of supreme power. One consequence of federal government sovereignty is that the federal government cannot be sued without its permission
Stewardship
Principle that government in accountable for safeguarding assets and promoting long-term economic security of citizens.
Tax Equity
Principle that taxes should treat taxpayers fairly. When applied to income taxes.
Horizontal Equity means that different taxpayers with the same income pay the same amount of taxes.
Vertical Equity - taxpayers with different income levels pay different amounts of taxes.
Tax Expenditure
Provisions of tax law or regulation that uses tax deductions, tax credits, or income exemption to encourage certain behavior by individuals or business.
Term Bonds
A block of bonds in which all bonds in the issue mature on the same date or near the same date usually many years after issuance. Contrasts with serial bonds.
Warrant
A negotiable monetary instrument issued by a state or local government or the federal government
