City of Morgan Hill Adopted Budget FY 2016-17 and FY 2017-18

 CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL 

Glossary (continued)

Assets Property owned by the City which has monetary value.

Audit A systematic examination of the City’s financial records and processes which concludes in a written financial report. It includes test of management’s internal accounting controls and is intended to: 1. ascertain whether financial statements fairly present financial positions and results of operations; 2. test whether transactions have been legally performed; and, 3. identify areas for possible improvements in accounting practices and procedures

Balance Sheet A statement which presents the financial position of an entity by disclosing its assets, liabilities, and fund equities as of a specific date.

BMR Below Market Rate

Bond Debt (Debt Instrument) A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt to pay for specific capital expenditures.

Budget (Operating) A plan of financial operation listing an estimate of proposed expenditures (appropriations) for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates).

Budgetary Basis of Accounting Morgan Hill budgets using the modified accrual basis plus encumbrances.

1. Under ‘modified accrual” amounts are recognized as revenue when earned, only so long as they are collectible within the period or soon enough afterwards to be used to pay liabilities of the cur- rent period. 2. Encumbrances outstanding at year-end are reappropriated in the next year and reported as reser- vations of fund balance.

Budget Calendar The schedule of key dates or milestones which the City follows in the preparation and adoption of the budget.

 CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18

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