Glossary Flashcards
ASB
Estab AICPA to promulgate GAAS; Follows due process proc & issues SAS;
Role - changed by SOX and PCOAB
ASLG (Audits of S & L Govt)
Audit & acctg guide pertains to S & L govt, published by AICPA
Authorization (fed budgeting process)
1 of 2 steps reqd in order for prog to operate;
performed by congressional committees in House & Senate
(other step is approp, which prov funding for prog)
Avg cost
Method of valuing inventory - ea item is given value based on # & price of all items in inventory
Method used primarily for fungible items (gas, oil, coal)
B/S (S & L)
Lists assets, deferred outflow of resources, liab, deferred inflow of resources, and fund balance/net position of rptg entity as of particular point in time
B/S (Fed govt)
B/S, Stmt of Net Cost, Stmt of Changes in Net Position, Stmt of Budgetary Resources
(for some agencies, Stmt of Custodial Activity, Stmt of Social Insurance, Stmt of Changes in Social Insurance)
Basis of Acctg
Timing of recognition of trans; when (in what period), should trans be rptd.
- Accrual, modified accrual, cash
Blending
One of methods of rptg component units in F/S; Have strong assoc w/ primary govt
Accountability
Need for public officials to be accountable for their actions & justify their decisions relating to raising of public resources and how those resources are used
- right to know
Accrual BOA
Recog fin trans when trans occur, regardless of timing of cash flows;
Rev recog when earned or due to govt;
Exp recog when incurred
Advance refunding
Issuing new debt to gain bene of retiring old debt that has higher I/R, but w/o actually retiring the debt;
proceeds of new debt invested and earnings, + investmt, used to pay interest of old debt, as well as P of old debt as it matures
Agency funds
One of fiduciary fund types;
Proceeds are held by govt as a custodian for other indiv, orgs, or govts
No residual balances; A = L
Allotment (S & L Acctg)
Dividing approp by smaller increments, usu by time (i.e. qtr), for purp of control
Allotment (fed acctg)
Formal delegation of auth by the head of a federal entity to other entity employees (i.e. head of an operating unit, to incur oblig)
Apportionment (fed govt)
Plan providing an agy w/ exec branch auth to obligate and/or expend approp in a manner consistent w/ plan;
divide approp into smaller increments based on time, etc.
Process overseen by OMB
Approp
Legal auth granted by legis body to spend money for purp indicated;
Amt sets limits on what can be spent
Assigned fund bal
Amts constrained by govt intent to be used for specific purp, but are neither restricted nor committed, but assigned for specific purp.
Block grant
Method of awarding grants to recipients;
Combines several indiv prog into a single grant award
Bond anticipation note (BAN)
ST financing mechanism used to prov fin resources to undertake cap proj prior to issuance of LT bonds;
proceeds of bonds are used to retire note
Bond discount
Diff between amt of proceeds recd and face value of bond that is sold for less than face value of the issue.
Result of receiving lower amt, bond has higher effective interest rate than stated rate
Bond indenture
Specific legal reqmts set forth in the bond issue pertaining to actions to be taken by the issuer to protect bond holders
Bond premium
Diff between amt of proceeds received and face value of bond that is sold for amt greater than face value of issue;
Bond has lower effective int rate; Premium is opposite of discount
Book value
Net amt at which asset is carried on books of acct; BV = gross or nominal amt of asset - any allowance or valuation; Also referred to as carrying value
Borrowing authority (in fed acctg)
Auth given in law that permits agy to borrow funds in order to incur oblig
Budget Authority (in fed acctg)
Auth provided in law to enter into legal oblig;
Includes approp, borrowing auth, contract auth, and spending auth from offsetting collections
Budget BOA
Basis used by govt for budgetary purp; Determines when rev and expend are to be recog
Budget resolution (in fed budgeting process)
Limits estab by Congress for receipt and spending, and size of the deficit or surplus
Budgetary acctg sys
Method used by govt to acct for rev and expend assoc w/ budget; Budgetary accts are integrated w/ fin accts for purp of prep fin rpts
Budgetary comparison schedules
Reqd supplementary presentation for S & L govt;
Reqd for GF and ea major SR that has a legally adopted annual budget; Includes orig budget, final budget, and actual for rev and expend
Budgetary resources (as used in fed acctg & budgeting)
Total amt avail to incur oblig in a given yr; comprises new budget auth and unobligated bal of budgeted auth provided in prev yrs
Business type activities
Activities prov by govt for which a fee or user charge is reqd. Sim to private business and acctg used is essentially the same; 1 of 2 categories of rptg at govt wide level by S & L govt
Capital assets
Land, land imp, easements, bldgs., bldg. imp, equip, veh, infrastructure, and other tangible assets used in oper
Capital Budget
Budget prepared by govt that set forth spending for proj that are to be used for cap purp and how they are to be financed
Capital Contributions
Cap assets prov by govt activities to bus type activities, proprietary or fiduciary funds in S & L govt model. Value of cap assests is rpts as rev in yr of contribution is made; incl cap assets prov by 1 govt to another govt
Capital contribution ex
Surplus police cars given by state to a local govt and cap assets donated by developers to the govt
Capital lease
Lease that transfers, substantially, all of the bene and risks of ownership from the lessor to the lessee.
