Page 15 - Moreno Valley 204 PAFR

g l o S S a ry
gloSSary
CAPITAL ASSETS – Non-Current Assets that are
used in the operation of the City and have an
initial useful life in excess of one year. Examples of
capital assets are buildings, computer equipment,
machinery, and vehicles.
CURRENT ASSETS – Liquid assets of the City such
as cash or receivables; assets that can be liquidated
within a short period of time, usually one year.
CURRENT LIABILITIES – City’s debt and obligations
that are due within a year such as accounts payable,
payroll taxes and matured principal payments.
DEFERRED INFLOW (OUTFLOW) OF RESOURCES
– Like revenues and expenses, deferrals represent
flows of resources into and out of a government
during the fiscal year. However, unlike revenues
and expenses which are inflows and outflows of
resources related to the period in which they occur,
deferrals are related to future periods.
DEPRECIATION – A reduction in the value of an
asset with the passage of time, due in particular to
wear and tear.
FUND BALANCE – The excess of total assets as
compared to total liabilities in a governmental
fund and listed under five categories:
1) Non-spendable: Amounts that cannot
be spent because they are either not in
the spendable form or are legally and
contractually required to be maintained
intact.
2) Restricted: Amounts that are constrained
on the use of resources by external
creditors, grantors, contributors, or laws or
regulations of other governments; or, by
law through constitutional provisions or
enabling legislature.
3) Committed: Amounts that can be used
only for the specific purposes pursuant to
constraints imposed by formal action of
the government’s highest authority, City
Council.
4) Assigned: Amounts that are constrained
by the government’s intent to be used
for specific purposes, but are neither
restricted nor committed.
5) Unassigned: Amounts that have not been
restricted, committed, or assigned to
specific purposes.
GAAP (GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES) – A collection of commonly-followed
accounting rules and standards for financial
reporting.
LONG-TERM DEBT/NON-CURRENT LIABILITIES
– Debt and obligations that are due usually in
more than one year such as bonds payable, claims
payable, and landfill post closure.
MEDIAN VS. AVERAGE – The median of a set of
numbers is that number where half the numbers
are lower and half the numbers are higher. In the
case of real estate, that means that the median is
the price where half the homes sold in any given
area that month were less expensive, and half were
more expensive than the median. The average
of a set of numbers is the total of those numbers
divided by the number of items in that set.
NON-CURRENT ASSETS – Assets that cannot be
converted to cash or liquidated in a short period
of time such as fixed/capital assets, inventory,
restricted assets, and deferred charges.
RECEIVABLE(S) – Amounts owed from a customer,
such as a business or resident, regarded as assets.
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