HomeMy WebLinkAbout(1969, 08/25) - F-10 - Adopted - F-10 was created off of the F-12 orginial number (Budget Administration), F-12 still exsist for (Budget Review) - combining F-5 and F-10BUDGET ALMINISTRATION POLICY DEFINITIONS
F -10
A. Fiscal Period -- Any period at the end of which a gove iumental unit determines
its condition and the results of its operatAons and closes its books.
For the purpose of Newport Beach this period is Jul 1 thru June 30.
B. Budget -- A plan of financial operation embodyin an estimate of proposed
eEp_ itures for a given period or purpose and a proposed means of fin-
ancing them.
C. Budget Document -- The instrument used by th budget - making authority to
present a comprehensive financial program t the appropriating body.
D. Function -- A group of services aimed at ccomplishing a certain purpose
or erect. (For example: "Public Works ".
E. Active -- A specific line of work c ied on by a governmental unit in
order to perform its functions.
F. Acti vit Section -- That budget br -down within an activity which groups
eitfuer salaries, maintenance and eration expenses, or capital outlay
items.
1) Salaries --
ren ere c.
Direct moneta compensation
This may be in the form of an
for personal services
established salary or
hourly wages.
2) Maintenance and Operatyon - Includes charges incurred either paid
or unpaid for operate maintenance and interest and other charges
which are presumed t benefit the current fiscal period. However,
purchases of materi s and supplies which may be used over a period
of more than one y ar and payments for insurance which is to be in
force for a longe period than one year should be charged to the
year in which th are incurred.
3) _Capital Outlay - Includes classifications for equipment, materials,
et cetera will in their completed and installed form become
additions to he City's investment in fixed assets. Capital Outlay
items are de fined as movable or mobile items of personal property
having a va a in excess of $200.00 and an anticipated use in excess
of three y ars. At the discretion of the City Manager items having
a lesser Yalue may be included in the budget as capital outlay items.
C. Ob'ect -- As ed in an expenditure classification, this term applies to
tt etype of, /salaries and wages (Example: overtime), the article pur-
chased (ExOnple: Capital Outlay item), or the service obtained (Example:
laundry avid cleaning) .
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BUDGET ADMINISTRATION POLICY DEFINITIONS - Page 2
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H. Unappropriated Contingency Reserve -- Assets set
propriated surplus of a fund and reserved for co
have not otherwise been provided for.
out of unap-
cies which
Note: In the past this has been referred to s unappropriated
surplus. It is felt that the newer rm is a more
accurate description and differenti tes this money
more clearly from surplus reserve. One of the distinct
differences between these two is at the unappropriated
contingency reserve is a budgete it while the surplus
reserve is an unbudgeted item.
I. Encumbrances -- Obligations in the form o purchase orders, contracts,
or salary commitments which are chargeab a to an appropriation and
for which a part of the appropriation i reserved. They cease to
be encumbrances when paid.
Adopted - April 26, 1965
Reaffirmed - August 15, 1966
Amended - November 25, 1968
Amended August 25, 1S6','