Account — A fiscal and accounting entity with a self-balancing set of general ledger codes in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, are recorded and segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. For reporting purposes, the state identifies major accounts, and administratively combines all remaining accounts into roll-up funds. Most accounts are set up in state law to isolate specific activities.
Account code or number — The alpha/numeric code assigned to identify each account.
Accrual basis — The basis of accounting whereby revenues are recognized when they are earned and measurable regardless of when collected, and expenses are recorded on a matching basis when incurred. All proprietary and fiduciary funds use the accrual basis of accounting.
Accrued expenditures — Expenditures that meet the appropriate recognition criteria of the account type involved but have not been paid. Accrued expenditures are expected to be paid in a subsequent accounting period.
Accrued liabilities — Liabilities reflecting the obligation to pay for goods or services that have been incurred or received but not paid for by the end of the accounting period. Accrued liabilities related to refunds of revenue are offset to the revenue originally recorded.
Accrued revenues — Revenues that meet the appropriate recognition criteria of the fund type involved, but are not realized until a subsequent accounting period. Also refers to Accrual Basis and Modified Accrual Basis.
Acquisition — This type of project includes the acquisition of land, structures, and buildings. These are fixed assets that have no relationship to the addition or improvement to, or the repair or replacement of, existing fixed assets. Examples of an acquisition are purchase of a tract of land or purchase of a building.
Addendum — A written or graphic instrument issued by the architect before execution of the construction contract that modifies or interprets the bidding documents by additions, deletions, clarifications, or corrections.
Allocation — Spending authority assigned to an agency from a lump-sum appropriation that is designated for expenditure by specific governmental units and/or for specific purposes, activities, or objects.
Allotment — An agency’s plan of estimated expenditures, revenues, cash disbursements, and cash receipts for each month of the biennium.
Alternate financing — Proposals that cover a wide range of financial contracts that call for the development or use of space by state agencies through a contractual arrangement with a developer or financing entity.
Appropriation — A legal authorization to make expenditures and incur obligations for specific purposes from a specific account over a specific time period. Appropriations typically limit expenditures to a specific amount and purpose within a fiscal year or other specified timeframe.
Base bid — An offer to do construction work for payment, the acceptance of which constitutes a contract between the contractor who made the bid (the bidder) and the agency or institution who accepted it exclusive of adjustments for additive alternates. Also known as a proposal or a tender; often called a prime bid when made by a construction company that hopes to become the prime contractor, or a sub-bid when made by a company that hopes to become a subcontractor.
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. Examples include bid bond, performance and payment bond.
Budget — A plan of financial operation embodying an estimate of proposed expenditures for a given period of time or purpose and the proposed means of financing them.
Budget drivers — Caseload, economic, or demographic factors that have a significant effect on the state budget. Examples include inflation rate changes and state population changes in certain age groups.
Budgeted accounts — Accounts that are subject to the appropriation and/or allotment process.
Capital addition — An addition that expands or extends an existing fixed asset. An example of an addition would be the construction of a new wing for a correctional institution. New construction attached to an existing structure as an extension is an addition. Generally, additions involve alterations within existing buildings to make connections.
Capital assets — Tangible or intangible assets held and used in state operations which have a service life of more than one year and meet the state’s capitalization policy. Capital assets of the state include land, infrastructure, improvements to land, buildings, leasehold improvements, vehicles, furnishings, equipment, collections, and all other tangible and intangible assets that are used in state operations.
Capital outlays — Expenditures for the acquisition of, addition to, or major repair of fixed assets intended to benefit future periods. In the operating budget, this label typically refers to equipment.
Cash disbursements — Cash disbursements are any moneys (e.g., checks, cash, warrants, credit or debit card amounts, or Electronic Fund Transfers (EFTs)) paid by the state during a period regardless of when the related obligations are incurred.
Cash receipts — Cash receipts are any moneys (e.g., checks, cash, warrants, credit or debit card amounts, or EFTs) received by the state during a period regardless of when the moneys are earned.
Cost/benefit analysis — An analysis in which consequences of the investment are measured in or converted to economic terms and qualitative benefits.
Cost estimate — The sum established by the agency/institution as available for the entire project, including the construction budget, acquisition costs, furnishings and equipment, compensation for professional services and all contingencies. The cost estimate is used to develop capital project budgets.
Dedicated accounts — Accounts set up by law to receive revenue from a specific source and to be spent for a specific purpose.
Deferred maintenance — A backlog of activities that agencies deem necessary to bring facilities into good repair. Deferred maintenance is generally work that is left undone due to the lack of resources or perceived lower priority than projects funded. Failure to perform deferred work may result in the progressive deterioration of the facility condition or performance, and if not addressed, will significantly increase restoration cost. Deferred maintenance backlog reduction plans must be submitted with the capital budget request.
Economic life — Economic life in the context of cost/benefit analysis refers to the span of years necessary to compare similar costs of operating and maintaining alternative solutions. It may not equate to the time required to fully depreciate the structure. The economic life span should be the same for each alternative for a project. The period of time, extending from the date of installation to the date of retirement for the intended service, over which a prudent owner expects to retain the property in order to obtain a minimum cost.
Efficiency measure — A measure that shows the relationship between inputs (dollars or FTEs) to output or outcome.
Entitlement — A service or grant that, under state or federal law, must be provided to all eligible applicants.
Equipment — Tangible property other than land, buildings, improvements other than buildings, or infrastructure which is used in operations and with a useful life of more than one year. Examples are furnishings, equipment, and software. Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to or an integral part of the building or structure, it is classified as equipment and not buildings.
Expenditure authority — Permission for agencies to disburse moneys or accrue liabilities during specific fiscal periods, up to specified amounts, from specific accounts. Authority is provided by the Legislature, through appropriations or inclusion of nonappropriated account moneys in the legislative budget, and by the executive through allocations, approval of unanticipated receipts, or across-the-board spending reductions.
Expenditures — Decreases in net current financial resources. Expenditures include disbursements and accruals for the current period. Encumbrances are not included.
Facility improvements — These include initial construction, punch-list items, retrofits, alterations, remodeling, renewals, tenant improvements, renovations, adaptations and code improvements for a facility.
Facility — A building or other structure with at least one wall and a roof.
Facility preservation — This is work that improves or restores the operational and service capacity to extend the useful life of a facility but does not significantly affect the programs and services housed within the facility. This work generally differs from ordinary maintenance in the extent and cost of the work undertaken. The distinction between ordinary maintenance and preservation is made for the purpose of segregating these types of projects by funding source, either operating or capital budget.
Fee — A fee is a charge, fixed by law, for the benefit of a service or to cover the cost of a regulatory program or the costs of administering a program for which the fee payer benefits. For example, professional license fees which cover the cost of administering and regulating that category of professions are fees. Other charges that are categorized as fees include tolls and tuition. Fees must be authorized in statute. The Legislature may set the rates in statute or authorize a state agency to set rates using administrative procedures.
Fiscal note — A statement of the estimated fiscal impact of proposed legislation.
Fiscal year — A 12-month fiscal period used for budget and accounting purposes. The Oklahoma State fiscal year extends from July 1 through the next June 30 and is named for the calendar year in which it ends (e.g., July 1, 2019 - June 30, 2020 is state fiscal year 2020).
Fixed assets — A fixed, physically attached and permanent improvement or real property. Fixed assets are normally those that are capitalized.
Full-time equivalent (FTE) — As a unit of measure of state employees: refers to the equivalent of one person working full-time for one year (approximately 2,088 hours of paid staff time). Two persons working half-time also count as one FTE.
Fund balance — The excess of the assets of an account over its liabilities and reserves. For governmental funds, fund balance represents the difference between fund assets (beginning balance and estimated revenues for the period) and fund liabilities (including reserves and appropriations for the period).
Funds — A term that generally refers to moneys or resources.
Fund type (Generally Accepted Accounting Principles [GAAP]) — One of 11 classifications into which all individual accounts can be categorized. Governmental fund types include the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. Proprietary fund types include enterprise funds and internal service funds. Fiduciary fund types include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds, and agency funds.
General fund — A fund established to account for all financial resources and transactions except those required by law to be accounted for in specific dedicated accounts.
General fund accounts — A group of accounts within the state's fund structure. These accounts within the General Fund are a grouping of accounts normally classified as Special Revenue Funds or Capital Projects Funds but which are considered a part of the total General Fund.
General obligation bonds — Statewide bond issues whose repayment is guaranteed by the full faith, credit, and taxing power of the state and that are subject to the state’s debt limit. General obligations bonds are the traditional form of government debt financing for major construction projects.
Generally Accepted Accounting Principles (GAAP) — Uniform minimum standards for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application but also detailed practices and procedures.
Goals — Broad, high-level, issue-oriented statements of an organization's desired future direction or desired state.
Governmental funds — A fund classification used to account for most typical governmental functions. The acquisition, use, and balance of the state's resources and related current liabilities, unless required to be accounted for in proprietary funds or fiduciary funds, are accounted for in this classification of funds. There are five types of governmental funds: General Fund, Special Revenue funds, Capital Projects funds, Debt Service funds and Permanent funds.
Grant — Awards of financial assistance, including cooperative agreements, in the form of money or property in lieu of money to an eligible grantee. Capital grants are restricted for the acquisition, constructions, or renovation of capital assets associated with a specific program. Operating grants support all or a portion of current operating expenses within a certain program.
Improvement — A legal term referring to anything erected on and affixed to land (e.g., buildings, roads, fences, and services), which legally becomes part of the land, according to common law and statutory definition.
Incremental budgeting — Any budget development approach that focuses on incremental changes to a previous spending level or other defined expenditure base.
Information technology — Equipment, software, services and products used in processing information, office automation, and telecommunications (voice, data and/or video).
Initial costs — The same as “first cost” or the cost to provide the service or product in today’s dollars for a project. Different from life cycle costs, or future costs.
Lease — Leases are contracts entered into by the state which provide for the use and purchase of real or personal property, and provide for payment by the state through the operating budget.
LEEDTM (Leadership in Energy and Environmental Design) — LEEDTM is a green building certification program that recognizes best-in-class building strategies and practices.
Life-cycle cost — The capital and operational cost of a construction item, system or building during its estimated useful life.
Life cycle cost analysis — The identification of a total life-cycle cost of a facility project. Life-cycle cost analysis is defined as the programmatic and technical considerations of all cost elements associated with capital facility alternatives under consideration. These cost elements may include any or all of the following: Capital Investment Costs, Lease Costs, Financial Costs, Operations Costs, Maintenance Costs, Alternations Costs, Replacement Costs, Denial of Use Costs, Lost Revenue, and Associated Costs.
Maximum allowable construction cost (MACC) — A cost that the owner stipulates to the design consultant before design begins. The cost is the owner’s budget for the construction cost of the project and serves as the parameter in which the design consultant agrees that the construction cost of the design will not exceed.
Modified accrual basis — The basis of accounting under which expenditures, whether paid or unpaid, are formally recognized when the liability is incurred against the account, but revenues are recognized only when they become both measurable and available to finance expenditures of the current accounting period.
Nonappropriated funds — Moneys that can be expended without legislative appropriation. Only funds in accounts specifically established in state law as being exempt from appropriation fall into this category. Nonappropriated accounts can be either or nonbudgeted.
Nonbudgeted accounts — Accounts that are not subject to either the appropriation or the allotment process.
Normal maintenance — A systematic day-to-day process funded by the annual operating budget to control the deterioration of facilities; e.g., structures, systems, equipment, pavement, and grounds. Planned maintenance includes: scheduled repetitive work, such as housekeeping activities, grounds keeping, site maintenance, and certain types of service contracts; and periodic scheduled work (preventive maintenance) that has been planned to provide adjustment, cleaning, minor repair, and routine inspection of equipment to reduce service interruptions.
Object of expenditure — A common grouping of expenditures made on the basis of homogenous activity, goods or services purchased, or type of resource to be used. Applies to the character of the article purchased or service obtained (rather than the purpose).
Objectives — Measurable targets that describe specific results a service or program is expected to accomplish within a given time period.
Operating budget — A plan for the revenues and expenditures necessary to support the administrative and service functions of state government.
Operations and service costs — The costs of the regular custodial care, utilities, refuse and recycling services, parking management, boiler operations, law enforcement and security, property management, visitor information, tour services, fire protection and life-safety services, including salaries of facility staff performing these tasks.
Outcome measure — A measure of the result of a service provided. This type of measure indicates the impact on the problem or issue the service or program was designed to achieve. Also known as results.
Output measure — An indicator of how much work has been completed. The number of units of a product of service produced or delivered.
Owner — The first party to the construction contract, who pays the contractor (the second party) for the construction work; also, the party who owns the rights to the land upon which the work is done and who, therefore, owns the work; also, the client of a designer, a construction manager, a project manager or a development manager.
Performance bond — A bond issued by a surety company on behalf of a contractor to guarantee an owner proper performance of the construction contract.
Performance budgeting — The act of considering and making funding choices based on desired outcomes. Performance budgeting focuses on the results to be gained through investment decisions.
Performance measure — A quantitative indicator that can be used to determine whether an agency’s programs or services are directly contributing to the achievement or progress toward some objective. Activity performance measures reported in the budget should tell the story of whether the activity is achieving its purpose and contributes to statewide goals. These measures are most likely to be intermediate or immediate outcomes or output measures.
Phased construction — Construction in which design and production more or less overlap, thus shortening project time; usually practiced in construction management projects.
Predictive maintenance — A refinement to preventive maintenance that integrates scheduled maintenance with system monitoring and analysis (e.g., vibration analysis, thermal/energy analysis) to identify inefficient operation or imminent breakdown. Predictive maintenance ideally reduces the cost of maintaining components that are working adequately.
Preservation project — Projects that maintain and preserve existing state facilities and assets, and do not significantly change the program use of a facility. Examples would include roof replacement and exterior renovation, utility system upgrade, and repairing streets and parking lots.
Preventive maintenance — A maintenance strategy where inspections are made or actions are taken on a scheduled basis to reduce service interruptions, reduce the premature failure of facilities, systems, and equipment, and continue efficient operations. Actual inspection and maintenance is performed on pre-specified schedules established by manufacturer or facility manager.
Primary purpose — As used in defining a project type, the identification of the dominant driver behind the project; the area where the impact of not correcting the deficiency is most acute.
Proprietary fund — A fund classification used to account for the state’s ongoing organizations and activities that are similar to those often found in the private sector. These funds are considered self-supporting in that the services rendered by them are financed through user charges or on a cost reimbursement basis. There are two types of proprietary funds: enterprise funds and internal service funds.
Real property — Property that is fixed, immovable, and permanent. Real property includes land, structures affixed to the land, property affixed to the structures, and in some cases, trees etc., growing on the land.
Reappropriation — Capital budget appropriation that reauthorizes the unexpended portion of previously appropriated funds. Because capital projects often overlap fiscal periods, it is necessary to reauthorize some expenditure authority to ensure project completion.
Receipts — Unless otherwise qualified, cash received during a fiscal year irrespective of when the monies are earned.
Reimbursable expenses — Amounts expended for or on account of the project that, in accordance with the terms of the appropriate agreement, are to be reimbursed by the agency/institution such as telephone charges and travel expenses in accordance with state guidelines.
Reserve or fund balance — In budget terminology, the difference between budgeted resources and expenditures.
Revenues — Cash receipts and receivables of a governmental unit derived from taxes and other sources.
Reversion — Unused appropriation authority. If an agency does not spend all of its appropriation in the timeframe specified by the budget, the authorization to spend that dollar amount expires.
Revolving fund/account — An internal service fund established to carry out a cycle of operations. The amounts expended from the account are restored to the account from earnings from operations or by transfers from other accounts, so that the account is always intact.
Strategic plan — A long-term comprehensive plan that represents an integrated set of decisions and actions designed to ensure that the intended goals and objectives of an agency are met. The plan should answer: Where are we today? Where do we want to be? How do we intend to close the gap between where we are and where we want to be?
Supplemental budget — Any legislative change to the original budget appropriations.
Treasury accounts — Accounts that have cash on deposit in and under the control of the State Treasurer and are disbursed by means of a warrant of electronic means. Treasury accounts are subject to appropriation unless specifically exempted.
Useful life — An estimate of the total time that an asset is usable and in service.