FY2021 Adopted Budget

FY2021 Adopted Budget Appendices

Glossary of Terms

DEBT SERVICE - 7KH DQQXDO SD\PHQW RI SULQFLSDO DQG LQWHUHVW RQ WKH &RXQW\¶V ERQGHG GHEW DEPRECIATION - The expiration of the useful life of a fixed asset over a determined period of time attributable to wear and tear, deterioration, action of the physical elements, inadequacy, and obsolescence. Also, the portion of the cost of a fixed asset that is expensed during a particular period. DIVISION - The major organizational unit in Frederick County Government. Departments, Offices and other named organizational units report up to a Division. ENCUMBRANCES - Obligations in the form of purchase requisitions or other commitments for which a portion of the budget is set aside for spending. ENTERPRISE FUND - A fund established to account for the financing of certain self-supporting services provided by the County government. The services generate their own revenues from fees, charges and other receipts. EQUATED ENROLLMENT ± Assign a value of less than one to students enrolled in partial day programs. EXPENDITURE - The cost of goods delivered or services rendered. FIDUCIARY FUND - A special fund, administered by the County as trustee, consisting of resources to be expended or invested under the terms and conditions of the Trust established for the purpose. FISCAL YEAR (FY) - A twelve month period of time to which the annual operating and capital budgets apply. Frederick &RXQW\¶V fiscal year begins July 1 and ends the following June 30th. FRINGE BENEFITS - Contributions made by the County government to meet its commitments or obligations for Social Security, and the various retirement, medical and insurance plans for employees. FULL TIME EQUIVALENT (FTE) - A Position converted to a decimal equivalent based on 35 or 40 hours per week. For example, a part ± time employee working 20 hours per week would be equivalent to 0.5 of a full-time position and a person working 40 hours a week would be counted as 1.0 FTE. FUND - A separate budget/accounting grouping with its own revenues and appropriations. The general fund, for example, covers most of the daily operations of the County Divisions and is funded by a variety of taxes and other revenues. FUND BALANCE - The residual amount of annual revenues recorded in excess of expenses. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) - A common set of accounting conventions, standards and procedures followed when preparing financial statements. GENERAL FUND - The primary fund which supports most general government functions in Frederick County. GENERAL GOVERNMENT - The function of government comprised of the central administrative offices such as: Finance, Human Resources, Citizens Services, Public Works, etc. GOVERNMENTAL FUND - These funds account for the near-term inflows and outflows of spendable resources. The largest of these is the General Fund.

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