City of Cedar Rapids, Iowa - City Auditor-Controller

A | B | C | D | E | F | G | H | I | L | M | N | O | P | R | S | T | U

A

Accrual Basis - A basis of accounting in which revenues are recognized in the accounting period they are earned and become measurable. Expenditures are recognized in the period that they are incurred, if measurable.

Accumulated Depreciation-Buildings (credit) - The accumulation of systematic and rational allocations of the estimated cost of using buildings, on a historical cost basis, over the useful lives of the buildings.

Accumulated Depreciation-Improvements Other Than Buildings (credit) - The accumulation of systematic and rational allocations of the estimated cost of using improvements, on a historical cost basis, over the useful lives of the improvements.

Accumulated Depreciation-Infrastructure (credit) - The accumulation of systematic and rational allocations of the estimated cost of using infrastructure, on a historical cost basis, over the useful lives of the infrastructure. This account is not used for any networks or subsystems of infrastructure that are reported using the modified approach.

Accumulated Depreciation-Machinery and Equipment (credit) - The accumulation of systematic and rational allocations of the estimated cost of using machinery and equipment, on a historical cost basis, over the useful lives of the machinery and equipment.

Activity - Departmental efforts which contribute to the achievement of a specific set of program objectives; the smallest unit of the program budget.

Ad Valorem Taxes - Literally, according to the value-used to designate a duty or charge laid upon goods at a certain rate per cent upon their value as stated, in opposition to a specific sum upon a given quantity or number; to designate an assessment of taxes against property, etc. We commonly referred to this as property taxes.

Annualize - Taking revenues or expenditures that occurred during the year and calculating their cost for a full year. As an example, a $25.00 cost that occurs quarterly will have an annual cost of $100.

Appropriation - A legal authorization to incur obligations and to make expenditures for specific purposes.

Assessed Valuation - The valuation set upon real estate and certain other property by the Assessor for establishing net worth, the purpose of resale or a basis for levying taxes, etc.

B

Bond - A long-term I.O.U. or promise to repay a specified amount of money (the face amount of the bond) on a particular date (the maturity date). Bonds are used to finance capital projects and capital equipment.

Bond Council - A specialized attorney (law firm) with primary role to certify both that the issuer has legal authority to issue the bonds and that the securities qualify for applicable tax exemption.

Budget - A financial plan of revenues and expenditures for a definite period of time.

Budgetary Control - The control or management of an entity in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources.

Buildings - Permanent structures purchased or otherwise acquired by the government and improvements thereon. This account includes costs incurred in the acquisition of buildings (e.g. broker’s fees).

C

Capital Budget - A plan of revenues and expenditures to improve facilities, equipment and other infrastructure of the City’s for a defined period of time.

Capital Equipment – An expenditure for an item or system that has a purchase price exceeding $5,000.00 and a useful life of over two years. A system can be considered capital equipment if the purchase price exceeds the minimum and has a useful life of more than two years even though the cost of each unit is less than $5,000.00. The components must be compatible with each other and necessary in performing a desired function. An example of a system is the purchase of a personal computer, with keyboard, printer and special software. All costs including freight can be used when determining if an item can be capitalized. Each piece of capital equipment will be classified as a capital asset and maintain on the list of capital assets.

Capital Improvements Program (CIP) - A collection of capital improvements projects to City property that is defined by year over a fixed number of years to meet the needs of the City. The program is approved by the City Council annually.

Capital Improvement Project - A major construction, acquisition or renovation activity/project that adds value to a physical assets or significantly increase their useful life, also called capital project.

Capital Outlay - A collection of accounts used to capture expenditures related to the purchase of capital equipment, such as autos, trucks, personal computers and capital improvements such as, land and building improvements.

Capital Projects Funds – Capital Projects funds are utilized to account for financing sources to be used for the acquisition or construction of capital facilities and other major fixed assets, with the exception of those that are financed by Enterprise Funds monies.

Cash Basis - A basis of accounting, in which, revenue and expenditure transactions are recognized only when cash is increased or decreased.

Charges for Services Revenue - A collection of accounts used to capture revenue related to service(s) provided by the City, such as, water usage, sewer usage, solid waste pickup, special police services or playground fees.

Component Units - Legally separate organizations for which the elected officials of the primary government are accountable; or if the primary government is not accountable, the nature and significance of the component unit’s financial relationship is such that to exclude it would cause the primary government’s financial statements to be misleading or incomplete.

D

Debt Service - Expense incurred due to the payment of principal and interest on general obligation bonds and discount of bonds.

Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term and special assessment debt principal, interest and related cost.

Department - An organizational unit that is functionally unique in its delivery of a service.

Depreciation - Expiration in the service life of capital assets attributable to normal wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence.

E

Encumbrance - To set aside or commit funds for a specified future expenditure.

Enterprise Funds – The Enterprise Funds account for the separate organizations that are financed and operated in a manner similar to a private business.

Expenditure - The payment of cash on the transfer of property or services for the purpose of acquiring as asset, service or settling a loss.

Expense - Charge(s) incurred, whether paid immediately or unpaid, for the operation, maintenance, interest or other charges to any organization of the City.

F

Financial Advisor - A individual or firm whose role is to guide the issuer through the sale by the provisions of a list of potential bidders, interfacing with rating agency and directing the closing.

Fines and Forfeits Revenue - A collection of accounts used to capture revenue, such as, library fines, court fines or parking fines.

Fiscal Year - A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The City of Cedar Rapids’ fiscal year is July 1 - June 30. Full-time Equivalent Position (FTE) - the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time typist working for 20 hours per week would be the equivalent to .5 of a full-time position.

Fund - A fiscal entity with revenues and expenses, which are segregated for the purpose of carrying out a specific purpose or activity. Each fund is self-balancing.

Fund Balance - The excess of the assets/revenue of a fund over/under its liabilities/expenditures.

G

General Fund – The General Fund accounts for all the financial resources of the City, except for those required to be accounted for by other funds.

General Obligation Bond (GOB) - A method used by the City to borrow money to fund capital equipment and capital improvements projects. This type of bond is backed by the full faith credit and taxing power of the government.

Goal - A statement of broad direction, purpose or intent based on improving the effectiveness and/or efficiency in meeting the customer’s needs. A goal is general and timeless.

GASB 34 (Governmental Accounting Standards Board) - This statement establishes new financial reporting requirements. When implemented it will create new information and will restructure much of the information governments have presented in the past. The new requirements will make annual reports more comprehensive and to understand and use.

Grants - A contribution by a government or other organization to support a particular function completed by the City. Grants may be classified as either operational or capital, depending upon the grantee.

H

Hourly Employee - An employee who is paid based on a specific hourly rate for the hours worked. The employee may be full or part-time.

I

Improvements Other Than Buildings – Permanent improvements, other than buildings, that add value to land (e.g. fences, landscape, parking lots and retaining walls).

Increment – The difference between the base and the top. As an example, to determine the valuation for TIF revenue, the assessed value at the time the TIF is approved is the base amount.

Infrastructure - Tangible property that is normally both stationary in nature and can be preserved for a significantly greater number of years than other types of tangible property (e.g. roads, bridges, tunnels, drainage systems, water and sewer systems, dams and lighting systems).

Intergovernmental Revenue - A collection of accounts used to capture revenue from federal, state or other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.

Internal Service Funds – The Internal Service Funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost reimbursement basis.

L

Land – Land purchased or otherwise acquired by the government. This account includes costs incurred in preparing land for use (e.g. razing of structures).

Licenses and Permits - A collection of accounts used to capture revenue related to liquor licenses, business licenses, electrical permits, mechanical permits or building permits, etc issued by the City.

Long-term Debt - Debt with a maturity of more than one year after the date of issuance.

M

Machinery and Equipment - Tangible property of a more or less permanent nature, other than land or buildings and improvements thereon (e.g. machinery, trucks, tools and furnishings). This account includes costs incurred in the acquisition of machinery and equipment (e.g. transportation costs).

Major Object of Expenditure - A collection of accounts used to capture expenses and are categorized by object, such as Personal Services, Purchased Services, Supplies and Materials and Capital Outlay. The total of expenditures that makes up the Major Objects of Expenditure is equal to the annual budget of the City of Cedar Rapids. The complete list of objects is located in the Citizens Guide section of this document.

Major Object of Revenue - A collection of accounts used to capture revenue by object, such as Taxes, Licenses and Permits, Intergovernmental and Charges for Services. The total of revenues that makes up the Major Objects of Revenue is equal to the annual budget of the City of Cedar Rapids. The complete list of objects is located in the Citizens Guide section of this document.

Miscellaneous Revenue - A collection of accounts used to capture revenue from sales tax refunds, postage and handling, sale of inventory, Contributions and Donations, Special Assessments and other revenues.

Modified Accrual - A basis of accounting in which revenues are recognized in the period they become available and measurable. Expenditures are recorded when the related fund liability has been incurred or the invoice is received.

Moody’s Investors Services - An independent financial advisory firm that rates organizations such as cities and companies as to their financial viability. The highest rating an organization can receive is Aaa.

N

Non-Personal Services - All operating expenditures excluding Personal Services and Capital Outlay. This includes Purchased Services, Supplies and Materials and Other.

O

Obligations - Amounts which a government may be legally required to need out of its resources. They include not only actual liability, but also encumbrances not yet paid.

Official Statement – Also known as the bond prospective, it is a disclosure document that outlines pertinent information regarding the debt offering of a government entity.

Operating Expense - The cost of personnel, material and equipment required for a department to function/operate.

Operating Revenue - Funds received as income to pay for ongoing operations. It includes such items as taxes, fees for services rendered, interest earnings and grant revenues, etc. Operating revenues are used to pay for/offset day-to-day and future expenditures.

Other Expenditures - A collection of accounts used to capture expenditures related to contributions to other agencies, cost of conferences, travel, right-of-way/easement acquisition, etc.

Other Financing Sources - A collection of accounts used to capture revenue related to Interest/dividends received from proprietary funds only. See, Use of Money and Property, for interest/dividends received from nonproprietary funds.

P

PCard – a City owned credit card that employees can purchase items from area businesses Personal Services - A collection of accounts used to capture expenditures, such as wages, fringe benefits and other special pays of an employee.

PILOT – is Payment In Lieu Of Taxes. A payment made by enterprise departments to the General Fund for fire and police services.

Proceeds from Fixed Assets - A collection of accounts used to capture revenue received from the sale of the City’s assets, such as, buildings and/or equipment.

Proceeds of Long Term Liabilities - A collection of accounts used to capture revenue from the sale of general obligation bonds and premium on bonds sold.

Program Budget - A budget format that is dictated by the State. The programs are Human Development, Home and Community environment, Community Protection and Policy and Administration.

Purchased Services - A collection of accounts used to capture expenditures for services preformed by a vendors for which the requesting department requires the expertise, such as, telephone service, consulting services, electricity service, insurance, etc.

R

Referendum - The principal or practice of referring measures passed upon or proposed by, the legislative body to the body of voters, or electorate, for approval or rejection… Rents & Royalties - A collection of accounts used to capture revenue, such as, rental of City land and/or buildings, easements, lease of right-of-ways and air rights. Revenue received for fees, such as parking, concessions and airport landings.

Revaluation - Every odd year the state reviews residential and commercial property values to determine if assessed values should be changed from those submitted from the assessor.

Resolution - A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute.

Revenue Bond - A method of borrowing money where the payment is backed by the strength of the revenues from the organization that benefits from the bond.

S

Special Revenue Funds – Special Revenue Funds are utilized to account for revenues derived from specific sources that are to be accounted for as separate funds.

SSMID - To account for the revenues and expenditures to operate the Self-Supported Municipal Improvement District that is responsible for maintaining and upgrading the downtown. The district is its own taxing authority and taxes are their main source of revenue.

Supplies and Materials - A collection of accounts used to capture the cost of expenditures such as, the purchase of awards and recognition’s, concession supplies, street/sewer materials and supplies, gasoline, repairs and maintenance, etc.

T

Tax Exemptions - Authority to reduce the assessed property tax value of a piece of property. Examples include Homestead and Veteran exemptions.

Tax Incremental Financing (TIF) – a geographical location, a district, established within the City of Cedar Rapids to provide economic improvement, business assistance or educational training funded with the use of property taxes.

Tax Incremental Financing Fund - to account for the property taxes allocated to the Tax Incremental Financing District which operates as a distinct taxing entity.

Taxes - A collection of accounts used to capture revenue related to property tax (including TIF), library and band.

Tax Levy - The amount of revenue from taxation required to fund the government.

Tax Rate - The dollar per thousand rate determined by the City, through the budget process, that is applied to the taxable value. The result of the tax levy revenue necessary to run the City.

Taxable Valuation - The dollar amount that remains after property tax exemptions and rollbacks have been subtracted from the total assessed value of property; the value to which the property tax rate is applied.

U

Use of Money and Property - A collection of accounts used to capture revenue received from interest/dividends from non-proprietary funds. See, Other Financing Sources, for interest/dividends revenue received from proprietary funds.