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Glossary

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A

Accountability
The County government is willing and able to tell taxpayers what results have and have not been accomplished and why.

Accrual
In developing a conceptual framework for accounting and financial reporting, accrual recognizes transactions and events when the activity occurs, regardless of when the cash changes hands. As long as something is estimable and probable, it is recognized.

Ad Valorem Taxes
Commonly referred to as property taxes; a property tax as a percentage of the value of taxable property; a tax based on the assessed value of the taxable property; a tax levied on both real and personal property according to the property's valuation and the tax rate.

Agency
A separate unit of County government established to deliver services to citizens.

Allocation
The distribution of appropriations/expenditures to multiple programs.

Annualize
Taking charges that occurred as of a certain point in the year and calculating their cost for a full year.

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

Asset
Resources that are owned or held by a government and have monetary value.

Authorized Positions
Employee positions that are authorized in the adopted budget to be filled during the year.

Available (Cash) Balance
The amount of money in a fund available for appropriation and expenditure.

B

Baseline Budget
Cost of continuing the existing levels of service in the next fiscal year.

BRASS
Budget Reporting and Analysis Support System. This is Franklin County's performance-based budgeting software.

Budget
A financial plan for a specified period of time indicating all planned revenues and expenses for that period.

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

Budgeting for Results
Budget decisions are based on or influenced by performance information that describes the cost of producing a program and the results achieved for customers. This is accomplished by integrating budgeting and accounting systems with department strategic business plans.

Business Planning
A process of inventorying services and grouping services with a common purpose into programs that allows a department to develop performance measures for programs. These programs are grouped into lines of business with identified results to be achieved. When a department integrates its one year business plan with its two to five year strategic plan, the result is a strategic business plan that allows for managing for results at the operational level.

C

CAFR
Comprehensive Annual Financial Report.

Capital Budget
The appropriation of bonds or operating revenue for the construction of new facilities and infrastructure or for the improvements to existing facilities and other infrastructure.

Capital Improvements
Acquisition, expansion or rehabilitation of an element of the government's physical plant, sometimes referred to as infrastructure.

Capital Improvements Program (CIP)
A plan of capital improvements for each year over a fixed number of years to meet capital needs arising from the government's long-term needs.

Capital Outlay
Fixed assets that have a value of $1,000 or more and have a useful economic life of more than one year, or assets of any value if the nature of the item is such that it must be controlled for custody purposes as a fixed asset.

Capital Project
Major construction, acquisition, or renovation activity that adds value to a government's physical assets or significantly increases their useful life. Also called capital improvement.

Capital Reserve
An account used to segregate a portion of the government's equity to be used for future capital project expenditures.

Carryforward
Previously approved appropriations transferred from one fiscal year to the next. In Franklin County the carryforward period was until March 31st of the next calendar year; the County no longer does carryforward.

Cash
Actual money available. Resources/revenues in process of being collected or estimated to be collected are not considered cash.

Cash Basis
A basis of accounting in which transactions are recognized only when cash is increased or decreased.

Collective Bargaining Agreement
A legal contract between the employer and a verified representative of a recognized bargaining unit for specific terms and conditions of employment (e.g., hours, working conditions, salary, fringe benefits, and matters affecting health and safety of employees).

Commodities
Expendable items that are consumable or have a short life span. Examples include office supplies, gasoline, minor equipment, and asphalt.

Community Development Block Grant (CDBG)
Grant funds allocated by the federal government's Department of Housing and Urban Development to Franklin County to fund a variety of projects and activities to benefit low- and moderate-income residents of the county who reside outside the city limits of Columbus.

Contingency
A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. May also be used to reserve resources pending additional study/analysis for promising programs or ideas that need more development.

Contractual Services
Services rendered to a government by private firms, individuals, or other governmental agencies. Examples include utilities, rent, maintenance, and professional consulting.

D

Debt Service
The cost of paying principal and interest on borrowed money according to a predetermined payment schedule.

Decision Package Request
A request for a new initiative that impacts budget and/or performance beyond the baseline budget.

Demand Measure
The number of total units of service/product demanded or needed by the customer over a defined period of time.

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

Disbursement
The expenditure of monies.

E

Efficiency Measure
A calculation: a total program expense / primary result or output. An efficiency measure is stated in terms of dollars per output or result. A lower expense per result or output indicates a higher level of efficiency. The two efficiency measures utilized the most within the MFR process are output efficiency and result efficiency.

Encumbrance
Budgeted funds committed for goods and services that have not yet been delivered or rendered. An encumbrance cannot be established if appropriations are not available.

Enterprise Funds
Funds that are accounted for in a manner similar to a private business. Enterprise funds usually recover their costs (including depreciation) through user fees.

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

F

Family of Measures
The four categories of performance measures that Franklin County uses to measure the performance of a program. This group includes result, output, demand, and efficiency measures. These measures are referred to as a family because they are developed and used in relationship to one another. The measures tell this story: "Program "X" will produce this result for this customer by producing these outputs, relative to this demand (need), at this cost per result (result efficiency)".

Fiscal Policy
A government's policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal policy provides an agreed-upon set of principles for the planning and programming of government budgets and their funding.

Fiscal Year
A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. Franklin County's budget is based on a calendar fiscal year.

Fixed Assets
Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.

Fringe Benefits
Contributions made by a government to meet commitments or obligations for employee fringe benefits. Included are the government's share of costs for medical, dental, vision, mental health/chemical dependency, prescription and life insurance plans.

Full-time Equivalent Position (FTE)
A position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. A part-time typist working for 20 hours per week (1,040 hours per year) is a 0.5 full-time equivalent position.

Fund
A fiscal entity with revenues and expenses that are segregated for the purpose of carrying out a specific purpose or activity.

Fund Balance
When liabilities are subtracted from assets, there is a fund balance. A positive fund balance means there are more assets than liabilities; a negative fund balance means just the opposite. Fund balance can be complicated by the fact that part of the fund balance is reserved and part unreserved. The difference between reserved and unreserved is that the unreserved can potentially be authorized for future expenditures while the reserved cannot. Additionally, the fund balance is a residual and not necessarily a cash amount.

G

General Fund
This fund is used to account for all financial transactions and resources except those required to be accounted for in another fund. Revenues are derived primarily from sales taxes, interest income, a local government allocation from the State of Ohio, property and other local taxes, licenses, permits, and charges for services.

General Obligation (GO) Bond
This type of bond is backed by the full faith, credit and taxing power of the government.

Generally Accepted Accounting Principles (GAAP)
Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. The County's Comprehensive Annual Financial Report outlines adjustments needed to convert Franklin County's cash basis of accounting to a GAAP basis.

GFOA
Government Finance Officers Association.

Governmental Fund Types
Most of the County's governmental functions are accounted for in Governmental Funds. These funds measure changes in financial position, rather than net income. Governmental fund types include the General Fund, Special Revenue Funds, Debt Service Fund, and Capital Project Funds.

Grant
A contribution by a government or other organization to support a particular function.

I

Indirect Cost
A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service.

Infrastructure
The physical assets of a government (e.g., roads, bridges, water, sewer, and public buildings).

Inputs
The volume of resources provided to a program to meet their primary result, demands, and outputs. Inputs will be stated by the approved budget amount for each program. Examples include staff, facilities, materials and supplies.

Interfund Transfers
The movement of monies between funds of the same governmental entity.

Intergovernmental Revenue
Cash received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.

Internal Service Charges
The charges to user organizations for internal services provided by another government agency, such as data processing, or insurance funded from a central pool.

Internal Service Funds
These funds are used to account for financing of goods or services provided by one department or agency to other departments or agencies of the County, or to other governments, on an allocated cost recovery basis. Public Facility Management's Telecommunications Fund is an example of an Internal Service Fund.

K

Key Result
A performance measure that is directly related to the line of business purpose statement and that measures the impact the line of business has on citizens/customers.

L

Lapsing Appropriation
An appropriation made for a certain period of time, generally for the fiscal year, not expended by the end of the specified period.

Level of Service
This is a primary performance indicator utilized to analyze program performance data. This is a calculation of: primary output / demand. This ratio directly reflects the number of customers that receive a service compared to the number of customers that request and/or are required to receive a service. Level of service at 100% would indicate that the service demand was completely satisfied. Example: 961 home safety repairs/modifications completed (output) / 961 home safety repairs/modifications requested (demand) = 100% level of service.

Levy
To impose taxes for the support of government activities; usually associated with various taxes on property.

License and Permit Fees
Fees paid by citizens or businesses in exchange for legal permission to engage in specific activities.

Line of Business
A set of programs that have a common purpose or result. Lines of business provide performance information for strategic decision-making.

Line-item Budget
A budget that allocates money to specific items of cost such as personal services, materials and supplies and services and charges.

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

M

Mandate
Legislation passed by the state or federal government requiring action or provision of services and/or programs.

Materials and Services
Expendable materials, operating supplies and services necessary to conduct departmental operations.

Mill
The property tax rate that is based on the valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of assessed property valuation.

Mission
A clear and concise statement that depicts the overall purpose of the Agency/Department.

Mortgage Revenue Bonds
A bond backed by a lien on the monthly payments of a large pool of mortgages, usually issued by a state or local housing authority.

O

Object Code
An expenditure or revenue classification referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, and parking receipts.

Obligations
Amounts that a government may be legally required to meet out of its resources. These include not only actual liabilities, but also encumbrances not yet paid.

Operating Expenses
The cost for personnel, materials and equipment required for an organization to function.

Operating Revenue
Monies that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day services.

Organization
A unit of government within an agency that is functionally unique in its delivery of services.

Output Measure
A performance measure that indicates the number of units of service or product expected to be delivered to the customer.

P

Percent (%) Result
This is a primary performance indicator utilized to analyze program performance data. This is a calculation of: result / output. The percentage directly reflects the number of outputs that achieve the desired result(s). A higher percentage indicates a higher level of effectiveness. Effectiveness at 100% would indicate that all outputs met the desired impact for the customer. Example: 822 home safety repairs and modifications completed on time and within standards (result) / 961 home safety repairs and modifications completed (output) = 85.5% effectiveness.

Performance-Based Budgeting
A structured method that links measured results with funding allocations. This structure supports informed funding allocation decisions by identifying performance expectations and enabling decision makers to understand the results that can be achieved through different levels of spending.

Performance Checklist
A list of criteria that are used to gauge the impact of a budget request or recommendation on the program's level of service, result, output-efficiency, and result-efficiency.

Performance Management
This systematic process is represented through an organization planning, budgeting, forecasting, reporting and analyzing information so as to improve effectiveness and efficiency. Performance management includes organizational strategic planning and setting expectations, continually monitoring and analyzing performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding high-quality performance.

Performance Measures
Performance measures describe the information that managers and other decision-makers need in order to make good business decisions.

Personal Services
Expenditures for salaries and wages of County employees.

Primary Demand
This primary performance measure should stand alone as a general demand measure that reflects the total number of customers requesting/needing service or the total amount of service requested. This measure can be developed from aggregating a set of detailed demands. Primary demands are usually expressed in numbers and should align with (be the same unit of measure as) the Primary Output.

Primary Output
This primary activity measure should stand alone as a general output measure that reflects the total number of customers receiving service or the total amount of service provided. This measure can be developed from aggregating a set of detailed outputs. Primary outputs are usually expressed in numbers and should align with (be the same unit of measure as) the Primary Demand.

Primary Output Efficiency
This is a primary performance measure that is the calculation of: actual total program expenditures / actual primary output or total program budget / budgeted primary output. The primary output efficiency measure is stated in terms of dollars per output. Example: $347,000 actual program expenditures (total program expenditures) / 961 home safety repairs-modifications (actual primary output) = $361.08 per repair-modification (primary output efficiency).

Primary Performance Indicators
A structured set of performance measures that are used to present budgeted, actual, and projected program performance information and program expenditures as part of the performance-based budgeting process. The set of primary performance indicators currently used in the performance-based budgeting process are level of service, % result, output efficiency, and result efficiency.

Primary Result
This primary activity measure should stand alone as a general result measure that reflects the impact or benefit received by the customer as a result of receiving services from a program. This measure can be developed from aggregating a set of secondary results. Primary results are usually expressed in ratios/percentages; however, they are not limited to this statistic. Primary results should align with (be the same unit of measure as) the Primary Output and Primary Demand. Some primary results may be expressed as a certain threshold level (i.e., $75,000) or in conjunction with an established, accepted and reasonable performance standard specific to program or agency operations. For example, if an agency receives 100 requests for service and processes all the requests, the demand, output and level of service % all equal 100. However, if only 90 of the 100 requests are processed within an internal time standard of 30 processing days, then the primary result and result % are both equal to 90.

Primary Result Efficiency
This is a primary performance measure that is the calculation of: actual program expenditures / actual primary result or total program budget / budgeted primary result. The primary result efficiency measure is stated in terms of dollars per result. Example: $347,000 actual program expenditures (total program expenditures) / 822 home safety repairs-modifications completed on time and within time standards (primary result) = $422.14 per repair-modification completed on time and within standards (primary result efficiency).

Productivity
A means to analyze performance by FTE. This is a calculation of: primary result / FTE in program. A larger ratio indicates a greater level of productivity. Example: 822 home safety repairs-modifications completed on time and within standards (primary result) / 3.0 (FTE) = 274.0 productivity.

Program
A set of services grouped together around a common purpose or result for the customer.

Program Budget
A budget that allocates money to a program or set of services a government delivers rather than to specific line items of cost or to specific organizations. Each program has a defined set of services and objectives. The effectiveness and efficiency of the program are evaluated by performance measures.

Proprietary Fund Types
Proprietary Funds account for County activities that are similar to private sector businesses. These funds measure net income, financial position and changes in financial position. Proprietary fund types include enterprise and internal service funds.

Purchase Order
A contract for the provision of goods and services. The money necessary to fulfill this obligation is reserved by an encumbrance.

Purpose Statement
Defines the name of the program or line of business, a summary of the services provided, who the immediate customer group is, and the intended results to be experienced by that customer as a consequence of having received the services. Example: "The purpose of the (program / line of business) is to provide (primary services) services to Customer(s) so they can (result / impact for the customer)."

R

Reservation of Fund Balance
The portion of the fund balance that is not available for appropriation because it is legally restricted (e.g. encumbrances).

Reserve
An account used to set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose.

Resolution
An order of a legislative body.

Resources
Total amounts available for appropriation including estimated revenues, fund transfers, and beginning cash balances.

Result Measure
A performance measure that measures the impact or benefit that the customer experiences as a consequence of receiving the services or products. Results are expressed as a percentage or rate.

Revenue
Sources of income financing the operations of government.

Revenue Bond
This type of bond is backed only by the revenues from a specific enterprise or project such as a hospital or nursing home.

S

Secondary Demand
These activity measures can be the detailed categorization of a primary demand or they can be a totally different set of products or units of service demanded/needed by the customer that is deemed important for consideration by decision makers.

Secondary Output
These activity measures can be the detailed categorization of a primary output or they can be a totally different set of products or units of service provided to the customer that is deemed important for consideration by decision makers.

Secondary Performance Measures
These program activity measures (outputs, demands, and results) can be the categorization of primary performance measures, or they can be different performance measures (outputs, demands, results) that reflect separate program activity that is deemed important for consideration by decision makers. Each program is limited to 17 secondary activity measures (outputs, demands, results) in BRASS; however, additional secondary activity measures can be included in a business plan and tracked internally, if needed.

Secondary Result
These activity measures can be the detailed categorization of a primary result or they can be a totally different set of performance measures that reflect(s) the impact or benefit received by the customer as a result of receiving services from a program that is deemed important for consideration by decision makers.

Self-Insurance
Self-funding of insurance losses.

Services
The deliverables or products that the customer receives.

Source of Revenue
The classification describing the point of origin of revenues.

Special Assessments
A compulsory levy made by a local government against certain properties to defray part or all of the costs of a specific improvement or service that is presumed to be of general benefit to the public and of special benefit to such properties.

Special Revenue Fund
A fund used to account for receipts from revenue sources that have been earmarked for specific activities and related expenditures.

Strategic Business Plan
A Strategic Business Plan sets forth the purpose, strategic results, operational organization and performance expectations for a department. It provides information to department staff, corporate decision makers, elected officials and the public about how the department is organized to deliver results and what results the department is expected to achieve.

Strategic Results
The significant results expected to be achieved by a department over the next 2 to 5 years. These results take significant effort (versus business as usual) and provide the basis for evaluating the department as a whole.

Supplemental Appropriation
An additional appropriation approved by the governing body after the fiscal year has started.

T

Taxes
Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people.

Transfers In/Out
Amounts transferred from one fund to another to assist in financing the services for the recipient fund.

Technical Review
This critique is the initial review of the Strategic Business Plan and pertains to form only.

Unencumbered Balance
The amount of an appropriation that is neither expended nor encumbered. It is the amount of money still available for future purposes.

U

Unreserved Fund Balance
The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation.

User Fees
Charges for services paid by those actually benefiting from the service.

V

Voucher
An authorization to pay for goods and services received. A vendor invoice generally accompanies a voucher. The vendor invoice provides proof that the goods or services were received in accordance with the contractual agreement and that payment is due. The payment of the voucher results in an expenditure.

John O'Grady President
Marilyn Brown
Kevin L. Boyce