Glossary

Account Code

A series of numbers used to identify and classify expenditures or revenues within an organizational unit. The account code consists of a fund code, department, account, program, project, year, grant, and future as set forth in the “Chart of Accounts.”

Accrual Basis

A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent

ACFR

Annual Comprehensive Financial Report

Activity

The part of a department or division charged with a specific provision of County service.

Actual

Final audited revenue or expenditure results of operations for the fiscal year indicated.

Ad Valorem Tax

A tax levied against the taxable valuation of land and improvements. Commonly referred to as property taxes.

Amortization

The gradual reduction or liquidation of an amount over a period of time according to a specified schedule (such as, the retirement of a debt by serial payments to the creditor or in a sinking fund) either by a direct credit, or debit; or through the use of a valuation account.

Annual Comprehensive Financial Report

A set of U.S. government financial statements comprising the financial report of a state.

Appraised Value

An estimate of value for the purpose of taxation.

Appropriation

An authorization to make expenditures or incur obligations against the resources of the County.

Assessed Value

The total value of land and improvements less all property exempt from tax. It is used by a government as a basis for levying taxes. The Dallas County Appraisal District that is a separate

entity sets the assessed values in Dallas County.

Assets

Any item of monetary value owned by the County; ex. vehicles, land, etc.

Audit

A systematic review and evaluation of records and other data to determine the quality of the services or products provided in a given situation.

Available Fund Balance

The cash remaining from the prior year, which is available for appropriation and expenditure in the current year. Balanced Budget Amounts budgeted in a fiscal year for expenditures from the various funds do not exceed the balances in those funds plus anticipated revenue for the fiscal year.

Basis of Accounting

This refers to the methodology and timing of when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements

Bond

A debt instrument issued through a formal legal procedure and secured either by the pledge of specific properties or revenues or by the general credit of the state

Budget

An itemized schedule of estimated government revenues and expenditures covering the fiscal year, prepared in advance as a guide for government expenditures.

Budget Amendment

A change in the authorized level of funding (appropriations) for a department or line item object code. These adjustments are made only with Commissioners Court approval.

Budget Calendar

A schedule of dates which the County follows in the preparation, adoption and administration of the budget process.

Budget Document

The instrument used by the Budget Officer to present a comprehensive financial program to Commissioners Court.

Budget Policy & Procedures

A statement or plan that describes how certain aspects of the budget are formulated and the rules to be followed as the budget is put into operation after adoption.

Budgetary Control

A general set of guidelines established in a policy and procedures statement which allows for monitoring and management of funds that have been appropriated for use in providing a service.

Calculated Effective Tax Rate

State law in Texas prescribes a formula for calculating the effective tax rate for counties. The net effect of the formula is to produce a tax rate that goes down when property values rise because of inflation and vice versa. The intent is to generate a rate that produces approximately the same revenues as the year before. The formula does make adjustments for newly annexed property and newly constructed property. This term is now commonly referred to as the "No-New-Revenue" Rate.

Capital Budget

A plan of proposed capital expenditures and the means of financing the proposals. The capital budget is based on a Capital Improvement Program.

Capital Equipment

Non-Consumable items purchased with an estimated useful life of more than one (1) year and a value of $5,000 or more.

Capital Project Fund

A proposed plan for financing long term work projects that lead to the physical development of the County; usually based on the Capital Improvement Program.

CDC

Centers for Disease Control and Prevention.

Collection Rate

the percentage of revenue collected on a yearly basis, calculated as revenues collected from consumers divided by revenues billed to consumers. Current Taxes Taxes that are levied and collected prior to being delinquent. The tax year begins January 1st. Taxes are delinquent on February 1st, after which time penalty and interest charges accrue.

Deficit

The excess of expenses over budget during the accounting period.

Delinquent Taxes

Taxes that remain unpaid at February 1st.

Department

A major division or unit of the County responsible for a service or operation or a group of related operations within a functional area.

Department/Activity Description

Description of the services provided by a particular department at the approved level of funding.

Departmental Goals

The goals are to describe the purpose or benefit that the department provides to the citizen which also identifies the end result that the department desires to achieve.

Depreciation

A way of allocating a portion of the cost of an asset over the period it can be used.

Disbursement

Payment of goods or services in cash or by check.

Division

A section of an operation that is grouped based on related activities.

Effective Tax Rate

State law in Texas prescribes a formula for calculating the effective tax rate for counties. The net effect of the formula is to produce a tax rate that goes down when property values rise because of inflation and vice versa. The intent is to generate a rate that produces approximately the same revenues as the year before. The formula does make adjustments for newly annexed property and newly constructed property.

Encumbrance

An obligation of the County for which funds have been set aside (not expended) for a known or expected expenditure with a valid purchase order or contract.

EPM

Enterprise Performance Management (EPM) is a suite of integrated applications and tools designed to help organizations effectively manage and improve their performance across various aspects of their business operations. It provides a comprehensive set of performance management and business intelligence capabilities to support strategic planning, budgeting and forecasting, financial consolidation and reporting, profitability analysis, and decision-making processes.

ERP

Enterprise Resource Planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

Estimated Revenue

The amount of projected revenue for the fiscal cycle. Projections are generally based on prior experiences or increased fees.

Executive Summary

An overview of the County including budget highlights, funding sources and a complete review of the budget process.

Exempt

Personnel not eligible to receive overtime pay and who are expected to put in whatever hours are necessary to complete their job assignments. The respective department head or elected official, as partial compensation for overtime hours worked, may allow compensatory time off.

Expenditure

The outflow of funds to obtain goods or services.

Expenses

Charges incurred for operations, maintenance, debt service and other goods and services.

FEMA

Federal Emergency Management Agency.

Fines (Revenue)

Revenue generated through fines assessed by various courts.

Fiscal Policy

A set of principals for the planning and programming of government budgets. Changes in the level of taxes, the rate of government expenditures or the budget deficit are all possible

instruments of fiscal policy.

Fiscal Year

The period signifying the beginning and ending of an accounting period. Dallas County’s fiscal year is October 1st through September 30th.

Fixed Assets

Assets of significant value, which have a useful life of several years. Sometimes called Capital Assets

FMLA

Family Medical Leave Act of 1993.

Forfeitures

Payment as a penalty assessed by the Courts through bail bond and property forfeitures.

FTP

File Transfer Protocol.

Full-time Equivalent (FTE)

a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts.

Fund

An independent fiscal and accounting entity, segregated to perform specific activities or functions. Each fund balances appropriations and revenues.

Fund Balance

The excess of a fund’s current assets over its liabilities for the accounting period. State law prohibits deficits.

GAAP

Generally Accepted Accounting Principles.

GASB

Governmental Accounting Standards Board.

General Fund

The fund used to account for all financial resources except those required to be accounted for in another fund. This is the main operating fund of the County.

General Ledger

A file that contains the accounts needed to reflect the financial position and the results of operations of the County.

GFOA

Government Finance Officers Association.

Governmental Funds

Funds used to account for most typical governmental functions. The acquisition, use, and balances of expendable financial resources and the related current liabilities are

accounted for through governmental funds

Grant

A contribution by a government or other organization to support a particular function. Typically, these contributions are made to local governments from state or federal governments.

HIPAA/ HITECH

Health Insurance Portability and Accountability Act of 1996.

Indirect Costs

Costs not directly attributable to providing a product or service. Usually these are support costs.

Inflation

A persistent rise in the general price level that results in a decline in the purchasing power of money.

Infrastructure

The basic elements necessary for providing sufficient roads and highways necessary to handle the volumes of increasing traffic.

Interest Earnings

Earnings from available monies invested during the year.

Intergovernmental (Revenue)

Funds received as payment from the State of Texas and other agencies for administering a program.

Internal Control

A plan of organization under which employees’ duties are arranged so that records and procedures are so designed as to make it possible to exercise effective accounting controls over

assets, liabilities, revenues and expenditures.

Intra-Departmental Transfer

A change within a department’s operating line items with less than a $2,000 cumulative total for the fiscal year.

Investments

Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. The term does not include fixed assets used in governmental

operations.

JJAEP

Juvenile Justice Alternative Education Program.

JP

Justice of the Peace.

Levy

To impose taxes, special assessments, or service charges for the support of government activities.

Liabilities

Debt or other legal obligations arising out of transactions in the past that must be liquidated, renewed, or refunded at some future date. A liability does not include encumbrances.

Line Item Budget

A budget that lists each object code for departments separately with the dollar amount budgeted.

Long Term Debt

Debt with a maturity of more than one year from the date of issuance. Maintenance & Operations (M&O): Represents the portion of taxes assessed for the maintenance and operations of General Fund services.

ME

Medical Examiner’s Office.

Miscellaneous (Revenue)

Revenue generated from various sources such as the sale of assets or supplies. Beginning balances are classified as miscellaneous since they consist of excess revenue from all categories.

Mission Statement

An operational statement explaining the purpose of the organization.

Modified Accrual Basis

This is a combination of cash and accrual accounting.. Expenditures are immediately incurred as a liability while revenues are not recorded until they are actually received or

are “measurable” and “available for expenditure”. This type of accounting basis is conservative and is recommended as the standard for most governmental funds.

MUD

Municipal Utility District.

NCTCOG

North Central Texas Council of Governments.

No-New-Revenue Tax Rate

State law in Texas prescribes a formula for calculating the no-new revenue tax rate for counties. The net effect of the formula is to produce a tax rate that goes down when property values rise because of inflation and vice versa. The intent is to generate a rate that produces approximately the same revenues as the year before. The formula does make adjustments for

newly annexed property and newly constructed property. This term replaces the previously named "effective tax rate" through the Texas Transparency and Reform Act of 2019.

NSF

Not Sufficient Funds.

Non-Departmental Expense

Expenditures for professional services and other general government functions, which cannot be allocated to individual departments, are assigned to miscellaneous/non-departmental

expenses.

Object Code

Numerical code for line item expenditure description.

Objective

Steps taken to achieve a pre-determined goal.

OKR

Objectives and Key Results. Objectives describe a particular area of focus that will further the goals and interests of Commissioners Court. Key Results show precisely how to advance and objective(s) through value-driven and quantifiable targets.

Operating Budget

That summarized budget of the County, which provides a review of the services and functions of the various County departments including budget changes, funding sources and other

various information. This document is provided separate from a line-item budget which provides more details about the County for the public.

Operating Fund

A set of self-balancing accounts used to pay current, on-going expenditures.

Operating Expenses

The portion of the budget that provides goods and services used in the daily operations excluding personnel and capital expenditures.

Performance/Productivity Measures

Specific quantitative and qualitative measures of work performed as an objective of the department.

Permanent Improvement Fund (PIF):

Formerly called the Capital Improvement Fund, is a proposed plan to finance major infrastructure development and funded through General Obligation Bonds, Refunding Bonds, Permanent Improvement Bonds and Tax Notes. This fund includes major capital projects that total over $100,000 that are not funded with long-term debt.

Position

An employee working at least 17 hours per week for the County.

Property Tax

Taxes levied on both real and personal property according to the property’s valuation and the tax rate.

Proprietary Fund

provides services to the general public for a fee or services are provided by one department or agency to another department or agency on a cost-reimbursement basis.

Reserve

Dallas County maintains one type of reserve account. The Unallocated Reserves are used to fund expenses within the first three months of the fiscal year until property tax payments are received.

Resolution

A formal statement of opinion or determination adopted by an assembly or other formal group.

Resources

Total dollars available for appropriations, including estimated revenues, fund transfers, and beginning fund balances.

Revenue

Income received from such sources as taxes, fines, fees, forfeitures, grants, etc.

SO

Sheriff’s Office.

Source of Revenue

Revenues are classified according to source.

Special Revenue Funds

The funds used to account for specific revenue sources (other than for capital projects) that are legally restricted to expenditures for specified purposes. These legal restrictions can come from outside the County or from Commissioners’ Court.

Staffing Trends

Staffing figures for a specific period of time for a department or division.

Statute

A law enacted by the legislative assembly.

Tax Levy

The total amount to be raised by general property taxes for operating and debt service purposes.

Tax Rate

A percentage applied to all taxable property to raise general revenues.

Tax Rate Limit

The maximum rate at which a government may levy a tax. The limit may apply to taxes raised for a particular purpose, or to taxes imposed for all purposes, and may apply to a single

government, to a class of governments, or to all governments operating in a particular area. Overall tax rate limits usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given area.

Tax Roll

Official list showing the amount of taxes levied against each taxpayer or property.

Taxes

Sums imposed by a government for services performed for the common benefit of the people.

Taxes (current)

Taxes levied that are due within one year.

Taxes (delinquent)

Taxes which remain unpaid after the date on which a penalty for non-payment is attached.

TB

Tuberculosis.

TCEQ

Texas Commission on Environmental Quality.

TCOLE

Texas Commission on Law Enforcement.

Time Deposit

Investment of idle funds with a depository at a negotiated interest rate.

Transfer-In

Funds expended in one fund and received in another.

TxDOT

Texas Department of Transportation.

Unencumbered Balance

The amount of an appropriation that is neither expended nor obligated (encumbered). That amount of appropriation is available for future use.

Unappropriated Fund Balance

Funds that are neither expended nor obligated and provides cash flow to the organization.

Yield

The rate earned on an investment based on the price paid for the investment.