TEAM 1
__________ are related to the operating functions of an Agency.
Program/Interventions
Charges associated with using a particular service provided to participants. The charge generally recovers the cost of providing the service.
Fees
Cash paid or to be paid for the purchase of an item or for a service performed. An amount of money that is spent on something. Costs.
Expenditure
Provided to employees over and above their salaries as an inducement to employment. These include retirement, health insurance, and employer Social Security contributions.
Benefits
A business’ ________________ gives a snapshot of the company’s financial situation at a given moment. This includes the cash it has on hand, the notes payable it has outstanding and owner(s) equity in the business. Download a free balance sheet template here.
Balance Sheet
The costs the company incurs each month in order to operate, including rent, utilities, legal costs, employee salaries, contractor pay, and marketing and advertising costs. To remain financially solid, businesses are often encouraged to keep expenses as low as possible.
Expenses
The overall movement of funds through a business each month, including income and expenses. Businesses track _____________ to determine long-term solvency. A business’ _______________ can be determined by comparing its available cash balance at the beginning and end of a specified period.
Cash Flow
These are the economic resources a business has, including the products it has in inventory, the office furniture and supplies purchased for use, and any trademarks or copyrights it owns. These assets count toward the value of a business, since they could be sold if the business experienced difficult times.
Assets.
The number of full-time equivalent employees working under employment contracts. Agencies generally use contractual employees for tasks of a limited duration or seasonal nature. Contractual employees are not eligible for most benefits.
Contractual Positions
Prepared, due to the Department of Budget & Management (Fiscal Authority). Based on an agency’s expected revenues and proposed expenditures as a result of the agency’s statutory and legislative mandates, goals and objectives, costs, and priorities.
Agency Budget Request
Agreements which are often used between two (or more) Agencies in contracting for goods or services or for establishing policies and procedures.
Memorandum of Understanding (MOU)
Funds collected from a specific revenue source that must be appropriated for a specific expenditure.
Dedicated Funds
An expenditure for the acquisition or construction of buildings or other fixed assets, or for other tangible assets with a useful life of at least fifteen years.
Capital Expenditure
A method of calculating employment, workloads, enrollments or caseloads to adjust for part-time or part-year participation.
Full-Time Equivalent (FTE)
The amount a business is owed by its clients. Usually the client is notified by invoice of the amount owed, and if not paid, the debt is legally enforceable. On a business’ balance sheet, the A/R is often logged as an asset.
Accounts Receivable (A/R)
A plan for the yearly distribution of fiscal resources for ongoing operations of units/programs. The budgeted expenses and revenues for a year - adjusted to reflect those experienced. An amount of money that is planned to spend on a particular activity or resource.
Operating Budget
Refers to total earnings or profit. Is the difference calculated when subtracting all expenses from revenue. When a company’s _____________ increases, it’s normally a result of either revenue increasing or expenses being slashed. An increase in ____________ is generally perceived as a positive thing.
Net Income/Profit
Taxes, registration fees and sales, etc. that are collected from participants and are available for expenditure in an approved budget.
Revenues
The calendar on which the Agency operates for financial purposes. Some begin on July 1, ends on June 30; some begin on January 1 and end of December 31. All agencies can set their time frame.
Fiscal Year
To remain financially healthy, a business must have a regular profit that exceeds its losses. Usually itemized on a statement.
Profit and Loss
Also known as a “profit and loss statement” (P&L), shows the profitability of a business during a period of time. Looks at a business’ revenues and expenses through all of its activities.
Income Statement
Services provided by a business, organization, or individual who is not a regular employee such as: communication, printing, advertising, equipment rentals, referee, and professional services (trainer).
Contractual Services
A department, board, commission, office, institution, or other unit of organization that has an independent existence, and thus is authorized to receive and expend an appropriation. A department or agency may have one or more of these.
Budget Unit
Distinguished from “capital expenditures (buildings)” - expenses of ongoing operations. Does not result in a “tangible” fixed asset with a useful life of at least fifteen years.
Operating Expenditure
The number of full-time equivalent employees that may be employed at any one time on the regular payroll. The number of authorized positions includes vacant positions. An agency may not exceed its total of authorized positions. Authorized positions for a given fiscal year are enumerated in that year’s budget.
Authorized Positions