Not-for-Profit Financial Reporting

Exempt Organizations Glossary

Governmental terminology

Accounting system

The methods and records established to identify, assemble, analyze, classify, record, and report a government's transactions and to maintain accountability for the related assets and liabilities.

Accrual basis of accounting

The recording of financial effects on a government of transactions and other events and circumstances that have consequences for the government in the periods in which those transactions, events, and circumstances occur, rather than only in the periods in which cash is received or paid by the government.

Ad valorem tax

A tax based on value (such as a property tax).

Advance from other funds

An asset account used to record noncurrent portions of a longterm debt owed by one fund to another fund within the same reporting entity. (See Due to other funds and interfund receivable/payable).

Agency funds

A fund normally used to account for assets held by a government as an agent for individuals; private organizations; or other governments or other funds, or both.

Appropriation

A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in the amount and time it may be expended.

Assigned fund balance

A portion of fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed.

Basis of accounting

A term used ...