CAPITAL ASSETS - Assets that meet the state's capitalization policy such as land, improvements to land, easements, buildings, leasehold improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in state operations and that have initial useful lives extending beyond one year. Capital assets do not include depletable resources such as minerals or timber.

CAPITAL BUDGET - The portion of a budget, or a separate budget, devoted to proposed additions to capital assets and the means of financing those additions.

CAPITAL EXPENDITURE - Refer to CAPITAL OUTLAYS.

CAPITAL GRANTS - Grants that are restricted for the acquisition, construction, or renovation of capital assets associated with a specific program. Refer to GRANTS and OPERATING GRANTS

CAPITAL OUTLAYS - A budgetary or financial reporting term to indicate the expenditures for the acquisition of, addition to, or major repair of capital assets intended to benefit future periods. Expenditures may be from either Operating or Capital sources, and may be either capitalized or not capitalized.

CAPITAL PROJECTS FUNDS - Capital projects funds are used to account for the acquisition and/or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Refer to GOVERMENTAL FUNDS.

CAPITALIZATION POLICY - The criteria used to determine which capital outlays should be reported as capital assets on the state's financial statements.

CARD CUSTODIAN - An individual who is assigned responsibility of purchase card security and issuance of cards to authorized users.

CARD CUSTODIAN STATEMENT - A zero balance due statement, listing all transactions during the billing period, that is sent to the purchase card custodian by the purchase card provider.

CASH BASIS - A basis for accounting whereby revenues are recorded only when received and expenses are recorded only when paid without regard to the period in which they were earned or incurred.

CASH DISCOUNT - An allowance received or given if payment is completed within a stated period of time. Refer to TRADE DISCOUNT.

CASH DISBURSEMENTS - Cash disbursements are any moneys (e.g., checks, cash, warrants, credit or debit card amounts, and EFTs (Electronic Fund Transfers) paid by the state during a period regardless of when the related obligations are incurred.

CASH EQUIVALENT - Short-term, highly liquid investments that are both (1) readily convertible to known amounts of cash and (2) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally only investments with original maturities of three months or less meet this definition.

CASH RECEIPTS - Cash receipts are any moneys (e.g., checks, cash, warrants, credit or debit card amounts, or EFTs) received by the state during a period regardless of when the moneys are earned.

CASH/INVESTMENTS WITH ESCROW AGENT - An asset account reflecting deposits with escrow agents.

CATEGORICAL GRANTS - Federal grants that are awarded for specific limited purposes.

CENTRAL TRAVEL ACCOUNT - Terminology used by the credit card company for a "ghost billing account."

CHANGE ACCOUNTS - Accounts used solely for making change in across-the-counter cash transactions. Refer to IMPREST ACCOUNT.

CHECK - A written order on a bank to pay on demand a specified sum of money to a named person, out of money on deposit to the credit of the maker. A check differs from a warrant in that the latter is not necessarily payable on demand and may not be negotiable. It also differs from a voucher in that the latter is not an order to pay. Refer to WARRANT.

CHECK REGISTER - The document used to record pertinent details relating to expenditure/expense vouchers and coding for each check issued.

CHILD CARE FACILITY - Space used by a child care provider to provide child care services for state government employees.

CHILD CARE PROVIDER – An entity that is, or commits to becoming, licensed to operate a Washington State day care facility, an entity that regularly provides care for children for periods of less than twenty-four hours.

CLEARANCE PATTERN - The proportion of the total amount disbursed that is debited against the state's bank account each day after the disbursements.

CLEARING ACCOUNT - An account used to accumulate total charges or credits so that they can be distributed later among the accounts to which they are allocable or so that the net differences can be transferred to the proper account.

CLIENT - For travel regulation purposes, a person or entity that is entitled to receive agency services.

CLIENT SERVICES - Services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing. Clients are considered to be those individuals who the agency has statutory responsibility to serve, protect, or oversee.

COFFEE AND LIGHT REFRESHMENTS - For state purposes, coffee encompasses any non-alcoholic beverage, such as tea, soft drinks, juice, or milk. For state purposes, a light refreshment is an edible item that may be served between meals, for examples doughnuts, sweet rolls, and pieces of fruit or cheese.

COLLECTIONS - Refer to LIBRARY RESERVE COLLECTIONS, MUSEUM AND HISTORICAL COLLECTIONS, and ART COLLECTIONS./P>

COMMERCIAL LODGING FACILITY - A business, non-profit, or governmental entity that provides lodging accommodations for a fee.

COMMODITY CLASS CODE - The code assigned to an inventoriable capital asset that correlates to a descriptive title.

COMMON CARRIER - A person or company that transports passengers or goods for a fee.

COMMUTER RIDE-SHARING - A car pool or van pool arrangement whereby a fixed group, not exceeding fifteen persons including passengers and driver, is transported between their residences or other designated place, and their places of employment, educational, or other institutions, in a single daily round trip where the driver is also on the way to or from the place of employment, educational, or other institution.

COMMUTE - Travel between the official residence and other domicile of a state officer or employee and their official station or other place of work. Refer to OFFICIAL RESIDENCE and OFFICIAL STATION.

COMPENSATORY TIME - Time worked by certain state employees that, if not used for paid time off, results in compensation to be cashed out in accordance with regulations or agency policy.

COMPETITIVE SOLICITATION - A documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria which may include such factors as the consultant's fees or costs, ability, capacity, experience, reputation, responsiveness to time limitations, responsiveness to solicitation requirements, quality of previous performance, and compliance with statutes and rules relating to contracts or services.

COMPLIANCE AUDIT - An examination leading to the expression of an opinion on the audited governmental unit's compliance with the various finance-related legal and contractual provisions. Refer to AUDIT.

COMPOSITE METHOD - A method used to calculate depreciation expense that groups similar assets (such as library resources) or dissimilar assets of the same class (such as all roads and bridges in a park) using the same depreciation rate. Refer to DEPRECIATION.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) - The official annual financial report of the state encompassing all funds and component units of the state. It includes an introductory section, management's discussion and analysis (MD&A), basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, schedules, and a statistical section.

CONSTRUCTION IN PROGRESS - A general ledger account that reflects the cost of construction work undertaken on capital projects, but not completed as of the end of the accounting period.

CONSULTANT - An independent individual or entity contracting with an agency to perform a personal service or render an opinion or recommendation according to the consultant's methods and without being subject to the control of the agency except as to the result of the work. The agency monitors progress under the contract and authorizes payment.

CONSUMABLE INVENTORIES - Supplies consumed in the course of an agency's operations; or incidental items held for resale.

CONSUMPTION METHOD - The method under which inventories are recorded as an expenditure/expense when used. Refer to PURCHASES METHOD.

CONTINENTAL BREAKFAST - A breakfast generally consists of juice, bread, and a hot beverage (typically coffee or tea). Fruit is sometimes included as part of the price or as a priced option.

CONTINENTAL USA - As used in this manual, all areas in the 48 contiguous states and the District of Columbia.

CONTINGENT LIABILITY - Items which may become liabilities as a result of conditions undetermined at a given date, such as guarantees, pending law suits, judgments under appeal, unsettled disputed claims, unfilled purchase orders, and uncompleted contracts.

CONTRACTS PAYABLE - Amounts due on contracts for public improvements on work done for a governmental unit are to be recorded as Contracts Payable. Amounts withheld from that which is due the contractor and are intended to serve as a guarantee on the contracts are to be recorded separately as retainage payable. Refer to RETAINAGE PAYABLE.

CONTROL ACCOUNT - An account in the general ledger in which the aggregate of all debit and credit postings to a number of related accounts (called the subsidiary accounts) are recorded. For example, the Accounts Receivable account is a control account supported by the aggregate of the individual customer subsidiary accounts. Refer to GENERAL LEDGER and SUBSIDIARY ACCOUNTS.

CORRECTIVE ACTION PLAN - An agency response to audit findings that documents how deficiencies are to be corrected, how improvements are to be made, or demonstrates that audit findings are invalid or do not warrant any subsequent action. Refer to AUDIT.

COST ACCOUNTING - That 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-BASED MEASURE - Value of investment that is based on the cost of the investment.

COST RECORDS - All ledgers, supporting records, schedules, reports, invoices, vouchers, and other records and documents reflecting the cost of projects, jobs, production centers, processes, operations, products, or services, or the cost of any of the component parts thereof.

CREDIT CARD - A card entitling the holder to buy services or goods on credit.

CURRENT ASSETS - Resources that are available, or can readily be made available, to meet the cost of operations or to pay current liabilities.

CURRENT FINANCIAL RESOURCES MEASUREMENT FOCUS - Measurement focus used by governmental funds that accounts for the near-term (current) inflows, outflows, and balances of expendable (spendable) financial resources. Refer to MEASUREMENT FOCUS.

CURRENT LIABILITIES - Those obligations which are payable within one year from current assets or current resources.

CUT-OFF DATE - A selected date whereby transactions generally are stopped to provide for closing of the books of accounts for a given period, or for audit purposes.

Accounting Terms Glossary and Definitions
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