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CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16 OPERATING AND CIP
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY 15-16
OPERATING AND CIP BUDGET
CITY OF MORGAN HILL
FY15-16
OPERATING AND CIP BUDGET
CITY
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 opera-
tions;
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.
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 (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).
Glossary
(continued)