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Find Terms by Topic: Financial Systems

Accounts Payable

Definition:
Amounts owed to private persons or organizations for goods and/or services received by the state. Accounts Payable does not include amounts due to other agencies, funds, or other governments
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Business Functions

Accounts Receivable

Definition:
Amounts due from private persons or organizations for goods, and/or services furnished by the state. Accounts Receivable does not include amounts due from other agencies, funds, or other governments
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Business Functions

Budgetary Control

Definition:
The control or management of a governmental unit in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues.
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Business Functions

Budgeting

Definition:
A plan of financial operation embodying an estimate of proposed expenditures for a given period of time or purpose and the proposed means of financing them.
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Business Functions

Capital Asset Management / Fixed Asset Management

Definition:
The Management of tangible or intangible assets held and used in state operations, which have a service life of more than one year and meet the state's capitalization policy. Capital assets of the state include land, infrastructure, and improvements to land, buildings, leasehold improvements, vehicles, furnishings, equipment, collections, and all other tangible and intangible assets that are used in state operations
Topic(s):
Context:
Business Functions

Cash Flows

Definition:
The cash receipts and cash payments of a government during a period. It categorizes cash activity as resulting from operating, noncapital financing, capital financing and investing activities
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Business Functions

Cost Accounting/ Activity Based Costing (ABC)

Definition:
A method of accounting which provides for accumulating and recording of all the elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job. Cost accounting approach concerned with matching costs with activities (called cost drivers) that cause those costs. It is a more sophisticated kind of absorption-costing and replaces labor based costing system. ABC states that (1) products consume activities, (2) it is the activities (and not the products) that consume resources, (3) activities are the cost drivers, and (4) that activities are not necessarily based on the volume of production. Instead of allocating costs to cost centers (such as service delivery, marketing, finance), ABC allocates direct and indirect costs to activities such as processing an order, attending to a customer complaint, or delivering a service
Context:
Business Functions

Cost Estimate

Definition:
The sum established by the agency/institution as available for the entire project, including the construction budget, acquisition costs, furnishings and equipment, compensation for professional services and all contingencies. The cost estimate is used to develop capital project budgets
Context:
Business Functions

Cost Management and Control

Definition:
Management of cost related activities achieved by collecting, analyzing, evaluating, and reporting cost information used for budgeting, estimating, forecasting, and monitoring costs. Cost control typically includes (1) investigative procedures to detect variance of actual costs from budgeted costs, (2) diagnostic procedures to ascertain the cause(s) of variance, and (3) corrective procedures to effect realignment between actual and budgeted costs
Context:
Business Functions

Enterprise Risk Management

Definition:
Enterprise Risk Management (ERM) is the discipline of managing risk throughout an agency. Processes include conducting a risk assessment, identifying root causes of identified risks, prioritizing the risks on an enterprise level, determining which risk treatments best address the root causes, and then monitoring the success of the risk treatments. Treatments can include: Transferring the risk, minimizing the likelihood and/or impact of a negative outcome, and eliminating the activity associated with the risk
Context:
Business Functions

General Ledger

Definition:
A ledger containing the accounts in which are recorded, in detail or in summary, all transactions of the state
Context:
Business Functions

General Ledger Reconciliation

Definition:
The process of correlating one set of records with another set of records and/or a physical inventory count that involves identifying, explaining, and correcting differences
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Business Functions

Government Accounting

Definition:
The composite activity of analyzing, recording, summarizing, reporting, and interpreting the financial transactions of a governmental entity
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Business Functions

Grant Management

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Business Functions

Management Accounting

Definition:

The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics

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Business Functions

Performance Audit

Definition:

A systematic process of objectively obtaining and evaluating evidence regarding the performance of an organization, program, function, or activity. Evaluation is made in terms of its economy and efficiency of operations and effectiveness in achieving desired goals. The performance audit function provides an independent review of management's performance and the degree to which actual performance meets pre-stated goals

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Business Functions

Performance Budgeting

Definition:

The act of considering and making funding choices based on desired outcomes. Performance budgeting focuses on the results to be gained through investment decisions.

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Business Functions

Travel Management

Definition:

Activities associated with planning, preparing, and monitoring of business related travel for an organization's employees

Context:
Business Functions