Page 135 - HCSD SOPandIC Manual

CURRENT - The term refers to the fiscal year in progress.

DEFICIT - The excess of the obligations of a fund over the fund's resources.

DISBURSEMENTS - Payment in cash.

ENCUMBRANCES - Purchase orders, contracts, and salary or other commitments which are chargeable
to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances
when paid.

EQUIPMENT - An instrument, machine, apparatus, or set of articles with a value of at least $500 which
retains its original shape and appearance with use and/or is nonexpendable; i.e., if the article is damaged
or some of its parts are lost or worn out, it is usually more feasible to repair than to replace it with an
entirely new unit.

EXPENDITURES - Charges incurred, whether paid or unpaid, which are presumed to benefit the current
fiscal year.

FISCAL YEAR - The twelve-month period from July 1 through June 30, during which the financial
transactions of the school system are conducted.

FIXED ASSETS - Land, buildings, machinery, furniture, and other equipment which the Board of
Education intends to hold or continue to use over a long period of time and costs over $500.00 when
purchased. "Fixed" denotes probability or intent to continue use or possession, and does not indicate
immobility of an asset.

FUNCTION - A group of related activities which are aimed at accomplishing a major service for which
the school system is responsible.

FUND- All accounts necessary to set forth the financial position, the financial operations, the changes in
residual equities or balances, and the changes in financial position of a fund.

GENERAL FUND - Used to account for all transactions in the ordinary operations of the Board of
Education.

INVENTORY - A detailed list or record showing quantities, descriptions, values, and frequently, units of
measure and unit prices of property on hand at a given time.
Also, the cost of supplies and equipment on hand not yet distributed to requisitioning units.

INVOICE - An itemized list of merchandise purchased from a particular vendor from which payment is
made. The list includes quantity, description, price, terms, date and the like, and is matched with the
signed receiving copy.

OBJECT - The commodity or service obtained from a specific expenditure.

OBLIGATIONS - Amounts which the Board of Education will be required to meet out of its resources,
including both liabilities and encumbrances.

[APPENDIX-4.2]

From: John Greenhalgh, Practitioner's Guide to School Business Management, Allyn and Bacon, Boston, 1978, pp. 261-273. Sam B. Tidwell,
rd
Financial and Managerial Accounting for Elementary and Secondary Schools, 3 Ed., 1985, pp.597 -628.