ACCESS - Physical accessibility, as well as the provision of appropriate accommodations to ensure use of programs by persons with disabilities.

ACCOUNT - A fiscal and accounting entity with a self-balancing set of general ledger codes in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, are recorded and segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. For reporting purposes, the state identifies certain accounts as major funds, and administratively combines all remaining accounts into roll-up funds. Refer to MAJOR FUND, and ROLL-UP FUND.

ACCOUNT CODE - The three-character alpha/numeric code assigned by the Office of Financial Management (OFM) to identify each account. Refer to ACCOUNT.

ACCOUNT NUMBER - Refer to ACCOUNT CODE.

ACCOUNTING PERIOD - Any period of time designated for which financial statements are prepared. Refer to FISCAL PERIOD.

ACCOUNTING PROCEDURES - All procedures that discover, identify, record, classify, maintain, and summarize financial information to either produce financial reports or to provide internal control.

ACCOUNTING SYSTEM - The methods and records established to identify, assemble, analyze, classify, record, and report the state’s transactions and to maintain accountability for its assets and liabilities.

ACCOUNTS PAYABLE - 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. Refer to DUE TO...

ACCOUNTS RECEIVABLE - 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. Refer to DUE FROM...

ACCRETED VALUE - A valuation basis for certain investments and debt instruments that reports on the balance sheet only that portion of their face value that reflects principal and interest accrued to date.

ACCRUAL BASIS - The basis of accounting whereby revenues are recognized when earned and measurable regardless of when collected; and expenses are recorded on a matching basis when incurred. All proprietary and fiduciary funds use the accrual basis of accounting.

ACCRUE - To record revenues and expenditures/expenses when they meet the recognition criteria of the fund type involved regardless of when the cash activity occurs.

ACCRUED EXPENDITURES/EXPENSES - Expenses or expenditures that meet the appropriate recognition criteria of the fund type involved but have not been paid. Accrued expenditures are expected to be paid in a subsequent accounting period. Refer to ACCRUAL BASIS and ACCRUE.

ACCRUED LIABILITIES - Liabilities reflecting the obligation to pay for goods or services that have been incurred or received but not paid for by the end of the accounting period.

ACCRUED REVENUES - Revenues that meet the appropriate recognition criteria of the fund type involved, but are not realized during the accounting period. Refer to ACCRUAL BASIS, ACCRUE, and MODIFIED ACCRUAL BASIS.

ACCUMULATED DEPRECIATION - A contra-asset valuation account used to record the accumulation of periodic credits made to reflect the expiration of the estimated useful life of capital assets.

ACTUARIAL BASIS - A basis used in computing the amount of contributions to be made periodically to a fund or account so that the total contributions plus the compounded earnings thereon will equal the required payments to be made out of the fund or account. A Pension Trust Fund for a public employee retirement system is an example of a fund concerned with actuarial basis data.

ADA - An acronym for the Americans with Disabilities Act of 1990.

ADMINISTERING AGENCY - An agency designated by the Office of Financial Management to provide general oversight of financial accounting activity. An administering agency is also responsible for the cash management of the funds it administers.

ADVANTAGEOUS - Direct non-financial, work-related benefits accruing to the state.

AFRS - Refer to AGENCY FINANCIAL REPORTING SYSTEM.

AGENCY - Every state agency, office, board, commission, department, state institution, or state institution of higher education, which includes all state universities, regional universities, The Evergreen State College, and community and technical colleges.

AGENCY CODE - The four character numeric code assigned by the Office of Financial Management to designate the distinct operational units of state government. Agency codes are used for the identification of state agencies. Agencies are to use only the code assigned to their agency unless specified elsewhere in this manual. Refer to AGENCY.

AGENCY FINANCIAL REPORTING SYSTEM (AFRS) - The statewide accounting system maintained by the Office of Financial Management. AFRS is the state of Washington's official accounting system.

AGENCY FUNDS - Agency funds are used to account for the assets held by the state as an agent for individuals, private organizations, and other governments. Agency funds are purely custodial in nature. Refer to FIDUCIARY FUNDS.

ALLOCATE - To divide a lump-sum appropriation into parts that are designated for expenditure by specific governmental units and/or for specific purposes, activities, or objects. Refer to ALLOCATION.

ALLOCATION - A part of a lump-sum appropriation that is designated for expenditure by specific governmental units and/or for specific purposes, activities, or objects. Refer to EXPENDITURE AUTHORITY.

ALLOTMENT - An agency's plan of estimated expenditures, revenues, cash disbursements, and cash receipts for each month of the biennium.

ALLOWABLE MOVING COSTS - Except as noted in Subsection 60.20.20 and within certain limitations, allowable moving costs include the costs associated with moving household goods, personal effects, and property used in a dwelling, and normal equipment and supplies used to maintain a dwelling from a residence to a new station within the state. Refer to HOUSEHOLD GOODS and Chapter 60.

ALLOWANCE FOR DEPRECIATION - Refer to ACCUMULATED DEPRECIATION.

ALLOWANCE FOR UNCOLLECTIBLES - A contra-asset valuation account used to indicate the portion of accounts receivable that is estimated to be uncollectible.

AMORTIZATION - The gradual reduction or liquidation of an amount over a period of time according to a specified schedule (such as, the retirement of a debt by serial payments to the creditor or in a sinking fund) either by a direct credit, or debit; or through the use of a valuation account.

AMORTIZED COST - The par value of the investment increased or decreased by any unamortized premium or discount.

AMOUNT AVAILABLE IN DEBT SERVICE FUNDS - An "other debit" general ledger code used in the General Long-Term Obligations Subsidiary Account that designates the amount of assets available in debt service funds for the retirement of outstanding general obligation debt.

AMOUNT TO BE PROVIDED FOR RETIREMENT OF LONG-TERM OBLIGATIONS - An other debit general ledger code used in the General Long-Term Obligations Subsidiary Account that represents the amount to be provided from taxes or other general revenues to retire outstanding general long-term obligations debt.

ANCILLARY COSTS - Costs that are directly attributable to asset acquisition, such as freight and transportation costs, site preparation costs, and professional fees, that are necessary to place a capital asset into its intended state of operation. Ancillary costs are capitalized as part of the cost of a capital asset. For an investment, ancillary costs include legal fees and commissions and are included as part of the cost of the investment.

ANNUITY - A series of equal money payments made or received at equal intervals over a designated period of time.

APPRAISAL - (1) The act of appraising. (2) The estimated value resulting from such action. Refer to APPRAISE.

APPRAISE - To make an estimate of value of an asset, for example an investment or capital asset, particularly of the value of property.

APPROPRIATION - A legislative authorization for an agency to make expenditures for specific purposes from designated resources available or estimated to be available during a specified time period.

APPROPRIATION CODE - Refer to EXPENDITURE AUTHORITY CODE.

APPROVING MANAGER - An individual within an agency who is responsible for designating purchase card custodians and establishing purchase card limits within the organization.

ART COLLECTION - An individual work of art or group of items of original artwork such as paintings, sculptures, craftwork or other materials commonly identified as a work of art. Art collections that are considered inexhaustible and meet certain criteria are not required to be capitalized. Agencies meeting the criteria for not capitalizing a collection have the option of capitalizing art collections as non-depreciable capital assets. Art collections that are exhaustible (such as those whose useful lives are diminished by display or educational/research applications) are to be capitalized and depreciated.

ASSETS - A probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. These economic resources can be tangible or intangible.

AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. The auditor obtains this evidential matter through inspection, observation, inquiries, and confirmations with third parties. Refer to COMPLIANCE AUDIT, CORRECTIVE ACTION PLAN, FINANCIAL AUDIT, PERFORMANCE AUDIT, AND SINGLE AUDIT.

AUTHORIZED TRAVEL PERIOD - That period of time when the traveler is in authorized travel status away from the official station and official residence. Refer to OFFICIAL STATION, OFFICIAL RESIDENCE, and TRAVELER.

AUTOMATED CLEARING HOUSE (ACH) - A nationwide payment and collection system that provides for electronic distribution and settlement of funds. Although the term Electronic Fund Transfer (EFT) is technically more inclusive than the term ACH, the term EFT is often used synonymously with ACH..

AUTOMATED TELLER MACHINE (ATM) - Computer controlled terminals located at a bank branch or other location, which enable a customer to perform basic banking activities (such as, withdrawals, deposits, or transferring funds) as they would through a bank teller.

Accounting Terms Glossary and Definitions
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