Appendix C


Abatement - A refund of previously paid property taxes due to over-valuation of property.

Accrual Basis - The basis of accounting under which revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, notwithstanding that the receipt of revenue or the payment of the expense may take place in whole or in part, in another accounting period.

Adopted Budget - Budget amounts as originally approved by the Board of County Commissioners at the beginning of the year and also the budget document which consolidates all beginning-of-the year appropriations.

Amended Budget - Budget which includes changes to the Adopted Budget that are approved by the Board of County Commissioners and transfers within the authority of management. It is also referred to as the Revised Budget.

Appropriation Resolution - A resolution passed by the Board of County Commissioners that authorizes an appropriation of funds.

Assessed Valuation - Taxable value of property within the County used as the basis for levying taxes.

Audit - The examination of documents, records, reports, systems of internal control, accounting and financial procedures, and other evidence.

Balanced Budget - According to Colorado State law, a balanced budget is defined as a budget where expenditures are not in excess of available revenues plus beginning unreserved and available fund balances.

Board of County Commissioners (BOCC) - The governing body of Elbert County which includes three Commissioners elected by district.

Capital Improvement Program (CIP) - A formal schedule of capital projects covering at least a five year period.

Capital Outlay - Expenditures that result in the purchase or addition to fixed assets. The County’s capital fixed assets are defined as items having a value of more than $5,000 and a useful life greater than one year.

Conservation Trust - State of Colorado lottery proceeds allocated to the County for parks and recreation use.

CRS - Colorado Revised Statutes.

Debt Service Fund - A fund established to account for principal and interest payments on long-term debt.

Department - Organizational unit within the government.

Depreciation - An accounting method of allocating the cost of an asset over it’s useful life, in the accounting period in which the asset is used.

Encumbrance - A commitment of funds for the purchase of specific goods or services.

Expenditure - The actual amount paid for goods, services, or capital assets. (Note: encumbrances are not expenditures.)

Expenses - Charges incurred, whether paid or unpaid, for operation, maintenance, interest and other charges which benefit the current fiscal period.

Fiscal Period - The period of time reflected in the County’s financial statements. The fiscal period for Elbert County is January 1 - December 31.

Full-time Equivalent (FTE) - Unit based on the number of hours an employee works per week. Elbert County considers an employee who works at least 36 hours per week, or 1,872 hours per year, a whole (1.00) FTE. Additionally, all elected officials are considered a whole (1.00) FTE.

Fund - An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities.

Fund Balance - The excess of assets over liabilities. Fund balance is accumulated when revenues exceed expenditures and is decreased when revenues are less than expenditures.

GAAP (Generally Accepted Accounting Principles) - Standards for financial accounting and reporting.

GASB (Governmental Accounting Standards Board) - An independent organization that establishes standards of accounting and financial reporting for state and local government entities in the United States.

General Fund - A fund used to account for all transactions of a governmental unit, which are not required to be accounted for in another fund. The General Fund is used to account for the ordinary operations of a governmental unit which are financed from taxes and other general revenues.

General Obligation Bond - A bond issued upon direction of the Board of County Commissioners and requiring approval in a County election.

Grant - A contribution of assets (usually cash) by one government unit or other organization to another. The contribution is usually made to aid in the support of a specific function (for example, education), but can be for general purposes.

Intergovernmental Revenue - Revenue from other government entities, primarily Federal and State grants.

Intragovernmental Transfer - Movement of funds within the County from one fund to another. These transfers are commonly used to provide revenue to funds with no dedicated source of income (Capital Improvement Fund, Bond Redemption Fund), or to cover costs of services provided by one fund to another (provision of Finance, Human Resources, I/T, etc. to Human Services). These transfers should offset each other, with revenues to receiving funds offsetting expenses to the donor funds.

Lease Purchase Agreements - Contractual agreements which are termed “leases,” but which in substance amount to purchase contracts for equipment, land or buildings.

Line Item Budget - A traditional approach to budgeting which categorizes expenditures and revenues in detail, itemized by object for items such as salaries, supplies, services and so forth.

Mandated Services - Services that the state or federal governments require the county to perform for which no revenue or partial revenue is provided to the county.

Mill Levy (Tax Rate) - Rate applied to assessed valuation to determine property taxes. A mill is 1/10th of a penny or $1.00 of tax for each $1,000 of assessed valuation.

Modified Accrual Basis - The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for material and/or available revenues which should be accrued to reflect properly the taxes levied and the revenues earned.

Property Tax - Taxes levied on all real and personal property according to the property’s assessed valuation and tax rate, in compliance with state and local statutes.

Proposed Budget - The recommended County budget submitted to the Board of County Commissioners by October 15th of each fiscal year.

Public Improvement District (PID) - A taxing unit formed to make public improvements through an increase in the mill levy tax. The PID is initiated by a petition which identifies the name of the proposed district and a general description of the boundaries. The Board of County Commissioners, as the governing body of the County, is the ex officio Board of Directors of the district.

Revenue - Monies received by the County in support of the County’s programs or services to the community.

Special Revenue Fund - A fund established to account for revenues received by the County that are restricted, whether by law, contract or policy, to be spent for a particular purpose.

TABOR (Taxpayer’s Bill of Rights) - An Amendment to the Colorado Constitution approved by voters in November 1992 that establishes limits on state and local government revenue growth, makes provisions for annual elections, and requires voter approval for tax increases.

TABOR Reserve - A restriction required by the TABOR Amendment for use in declared emergencies only. The reserve is 3% of “Fiscal Year Spending” excluding bonded debt service.

Transfers - The transfer of dollars between funds without regard of repayment or an equivalent exchange of value. For budget purposes, transfers are treated as revenue in the receiving fund and an expenditure from the originating fund.

Unassigned Fund Balance - The remaining portion of the fund balance that does not meet the criteria for Restricted, Committed, or Assigned Fund Balance.