HomeMy WebLinkAbout(1981, 11/23) - F-10 - AmendedF -10
BUDGET ADMINISTRATION DEFINITIONS
A. Fiscal Period -- Any period at the end of which a governmental unit
determines its financial condition and the results of its operations .
and closes its books. For the purpose of Newport Beach, this period
is July 1 through June 36.
B. Budget -- A plan of financial operation embodying an estimate of
proposed expenditures for a given period or purpose and the proposed
means of financing them.
C. Budget Document -- The instrument used by the budget - making authority
to present a comprehensive financial program to the appropriating body.
D. Function -- A group of services aimed at accomplishing a certain purpose
or end. (For example: "Public Works ".)
E. Activity -- A specific line of work carried on by a governmental unit
in order to perform its functions.
F. Activity Section -- That budget break -down within an activity which
groups either salaries, maintenance and operation expenses, or capital
outlay items.
1) Salaries -- Direct monetary compensation for personal services
rendered. This may be in the form of an established salary or
hourly wages.
2) Maintenance and Operation -- Includes charges incurred either
paid or unpaid for operation, maintenance and interest and other
charges which are presumed to benefit the current fiscal period.
However, purchases of materials and supplies which may be used
over a period of more than one year and payments for insurance
which is to be in force for a longer period than one year, should
be charged to the year in which they are incurred.
3) Capital Outlay -- Includes classifications for equipment, materials,
et cetera, which will in their completed and installed form, become
additions to the City's investment in fixed assets. Capital Outlay
items are defined as movable or mobile items of personal property
having a value in excess of $500.00 and an anticipated use in excess
of three years. At the discretion of the City Manager, items having
a lesser value may be included in the budget as capital outlay items.
G. Object -- As used in an expenditure classification, this term applies to
the type of salaries and wages (Example: overtime), the article purchased
Example: Capital Outlay item), or the service obtained (Example:
laundry and cleaning).
F -10
BUDGET ADMINISTRATION DEFINITIONS -- Page 2 0
H. Unappropriated Contingency _Reserve -- Assets set aside out of
unappropriated surplus of a fund and reserved for contingencies
which have not otherwise been provided for.
Note: In the past this has been referred to as unappropriated
surplus. It is felt that the newer term is a more
accurate description and differentiates this money
more clearly from surplus reserve. One of the distinct
differences between these two is that the unappropriated
contingency reserve is a budgeted item while the surplus
reserve is an unbudgeted item.
I. Encumbrances -- Obligations in the form of purchase orders, contracts,
or salary commitments which are chargeable to an appropriation and for
which a part of the appropriation is reserved. They cease to be
encumbrances when paid.
Adopted April 26, 1965
Reaffirmed August 15, 1966
Amended November 25, 1968
Amended August 25, 1969
Reaffirmed March 9, 1970
Reaffirmed December 10, 1973
Reaffirmed November 11, 1974
Amended November 23, 1981