ACCOUNT: A descriptive heading under which are recorded financial transactions that are similar in terms of a given frame of reference, such as purpose, object, or source.
APPROPRIATION: An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes
AUDIT: The examination of records and documents and the securing of other evidence for one or more of the following purposes:
A. Determining the propriety, legality and mathematical accuracy of proposed or completed transactions.
B. Ascertaining whether all transactions have been recorded.
C. Determining whether transactions are accurately recorded in the accounts and in the statement drawn from the accounts.
D. To determine whether the statements prepared present fairly the financial position of the school district.
BID: The process which includes legal advertising and direct contact, sought from appropriate vendors for goods and services individually or in the aggregate, whose cost is above the mandated bid threshold.
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.
CAPITAL OUTLAY: An expenditure which results in the acquisition of fixed assets or additions to fixed assets. It is an expenditure for land or existing buildings, improvements of grounds, construction of buildings, additions to buildings and the remodeling of buildings, with the life expectancy of at least ten years.
CASH: Currency, checks, postal and express money orders, and bankers’ drafts on hand on deposit with an official or agent designated as custodian of cash, and bank deposits.
CHART OF ACCOUNTS: A list of all accounts generally used in an individual accounting system. In addition to account title, the chart includes an account number which has been assigned to each account. Accounts in the chart are arranged by Fund, Program, Function and Object.
CONTRACTED SERVICES: Services rendered by personnel who are not on the payroll of the Board of Education including all related expense covered by the contract. Also, called Purchased Services.
DEFICIT: The excess of the obligations of a fund over the fund’s resources.
DISBURSEMENTS: Payments.
ENCUMBRANCES: Purchase orders, contracts, and salary or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved.
EQUIPMENT: An instrument, machine, apparatus, or set of articles with a value of at least $2000 which retains its original shape and appearance with use and/or is nonexpendable; i.e., if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to repair than to replace it with an entirely new unit.
EXPENDITURES: Charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year.
FISCAL YEAR: The twelve-month period from July 1 through June 30, during which the financial transactions of the school system are conducted.
FIXED ASSETS: Land, buildings, machinery, furniture, and other equipment which the Board of Education intends to hold or continue to use over a long period of time and costs over $2,000.00 when purchased. “Fixed” denotes probability or intent to continue use or possession, and does not indicate immobility of an asset.
FUNCTION: A group of related activities which are aimed at accomplishing a major service for which the school system is responsible.
FUND: All accounts necessary to set forth the financial position, the financial operations, the changes in residual equities or balances, and the changes in financial position of a fund.
GENERAL FUND: Used to account for all transactions in the ordinary operations of the Board.
INVENTORY: A detailed list or record showing quantities, descriptions, values, and frequently, units of measure and unit prices of property on hand at a given time. Also, the cost of supplies and equipment on hand not yet distributed to requisitioning units.
INVOICE: An itemized list of merchandise purchased from a particular vendor from which payment is made. The list includes quantity, description, price, terms, date and the like, and is matched with the receiving information.
OBLIGATIONS: Amounts which the Board of Education will be required to meet out of its resources, including both liabilities and encumbrances.
PETTY CASH: A sum of money set aside for the purpose of paying small obligations for which the issuance of a formal voucher and check would be too expensive and time-consuming. Also, a sum of money, in the form of a special bank deposit, set aside for the purpose of making immediate payments of comparatively small amounts.
PROGRAM: A plan of activities and procedures designed to accomplish a predetermined objective or set of allied objectives.
PRORATING: The allocation of parts of a single expenditure to two or more different accounts. The allocation is made in proportion to the benefits which the expenditure provides for the respective purposes or programs for which the accounts were established.
PURCHASE ORDER: A written request to a vendor to provide materials or services at a price set forth in the order and is used as an encumbrance document.
PURCHASED SERVICES: Personal services rendered by personnel who are not on the payroll of the Board of Education and other services which may be purchased by the Board of Education.
REFUND: A return of an overpayment or over collection. The return may be either in the form of cash or a credit to an account.
REIMBURSEMENT: The return of an overpayment or over collection in cash.
REPLACEMENT OF EQUIPMENT: A complete unit of equipment purchased to take the place of another complete unit of equipment which is to be sold, scrapped or written off the record and serving the same purpose as the replaced unit in the same way.
REQUISITION: A written request to a school official for specified articles or services. It is a request from one school official to another school official, whereas a purchase order is from a school official to a vendor.
STUDENT ACTIVITY FUND: Financial transactions related to school-sponsored student activities and interscholastic activities. These activities are supported in whole or in part by income from students, gate receipts, and other fund-raising activities.
SUPPLY: A material item of an inexpensive, expandable nature that is consumed, worn out or deteriorated in use; loses its identity through fabrication or incorporation into a different or more complex unit or substance. Is expendable or subject to replace rather than repair if damaged or if some of its parts are lost or worn out.
TRAVEL: Costs for transportation, meals, hotel and other expenses associated with traveling on business for the Board of Education.
VOUCHER: A document which authorizes the payment of money and usually indicates the accounts to be charged.