FACE VALUE - As applied to securities, this term designates the amount of an insurer's liability stated in the security document.

FAIR VALUE - The amount that could reasonably be expected to be received for an investment in a current sale between a willing buyer and a willing seller. For publicly traded securities, this is the price at which the security is currently being traded on a national market. For investment instruments that are not publicly traded, this is the appraised value adjusted for cash flows to or from the investment.

FEDERAL FINANCIAL ASSISTANCE - Assistance that nonfederal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, or other assistance. It does not include amounts received for provision of vendor services to federal agencies or reimbursements for services rendered directly to individuals.

FIDELITY BOND - A written promise to indemnify against losses from theft, embezzlement, defalcation, and misappropriation of public moneys by government officers and employees. Refer to SURETY BOND.

FIDUCIARY FUNDS - Fiduciary funds are used to account for assets held by the state in a trustee capacity, or as an agent for others and that cannot be used to support the state's own programs. There are four types of fiduciary funds: private-purpose, pension (and other employee benefit), and investment trust funds, and agency funds. Refer to PRIVATE-PURPOSE TRUST FUNDS, PENSION (AND OTHER EMPLOYEE BENEFIT) TRUST FUNDS, INVESTMENT TRUST FUNDS, and AGENCY FUNDS.

FIELD ORDER (A17-A, A17-1A) - A document used by agencies to order, encumber, liquidate, and authorize payment for local purchases. This form is used when an agency has general or specific authority to make the purchase or when the item being purchased falls within the statewide contracts.

FINAL AMENDED BUDGET - The original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes applicable to the fiscal year, whenever signed into law or otherwise legally authorized.

FINANCIAL AUDIT - An audit made by an independent external auditor for the purpose of issuing an audit opinion on the fair presentation of the financial statements of the state in conformity with GAAP. Refer to AUDIT.

FIRST-IN, FIRST-OUT (FIFO) - An inventory valuation method, which allocates cost on the assumption that goods are consumed or sold in the order that they were acquired.

FISCAL PERIOD - Any period at the end of which a governmental unit determines its financial position and the results of its operations. Refer to ACCOUNTING PERIOD.

FISCAL YEAR - In Washington State, a 12-month period extending from July 1 of one calendar year to June 30 of the next calendar year.

FIXED ASSETS - Refer to CAPITAL ASSETS.

FIXED INCOME INVESTMENTS - Fixed income investments consist of those non-equity assets (e.g., bonds) where earnings are derived from interest that is a fixed percentage of the asset's par, stated, or face value. These may include investments purchased at a discount that do not have coupon payments.

FIXTURES - Attachments to buildings, which are not intended to be removed, and which cannot be removed without damage to the buildings. Those fixtures with useful lives presumed to be as long as that of the building itself are considered a part of the building; all others are classified as equipment.

FOOD STAMPS - For financial reporting purposes, the dollar value of food stamps on hand for future distribution.

FOREIGN TRAVEL - Travel in all areas of the world outside of the United States of America and its possessions.

FULL-TIME EQUIVALENT (FTE) - Equivalent of 2088 hours of work in a fiscal year.

FUNCTION - A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible.

FUNCTION AND PROGRAM CODES - Codes assigned by an agency with the concurrence of the Office of Financial Management to identify an agency's functional areas and the various major activities within an agency. Refer to FUNCTION and PROGRAM.

FUND - For state purposes, a fund is referred to as an account. Refer to ACCOUNT.

FUND BALANCE - In governmental funds, this is the difference between fund assets and fund liabilities. Governmental fund balances should be segregated into reserved and unreserved amounts. Refer to RESERVED FUND BALANCE and UNRESERVED FUND BALANCE.

FUND CAPITAL ASSET - Capital assets recorded in proprietary and trust funds and used in the production of the goods or services provided or sold. Depreciation on fund capital assets is charged as an expense of the fund.

FUND EQUITY - The difference between a fund's assets and liabilities. In governmental funds, it is referred to as fund balance. In proprietary funds, it is referred to as net assets. Refer to FUND BALANCE and NET ASSETS.

FUND FINANCIAL STATEMENTS - Financial statements presented for the state's governmental, proprietary and fiduciary funds. They display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial statements for fiduciary funds. Each of the three fund categories is reported using the measurement focus and basis of accounting required for that category. Refer to GOVERNMENTAL FUNDS, PROPRIETARY FUNDS, and FIDUCIARY FUNDS.

FUND LONG-TERM OBLIGATIONS - Fund long-term obligations are directly related to and payable from proprietary and trust funds and are recorded in such funds. They are generally not expected to be paid within the next twelve months. Fund long-term obligations may be backed by a lien on a specific fund asset or by the full faith and credit of the state.

FUND TYPE (GAAP)- One of 11 classifications into which all individual accounts can be categorized. Governmental fund types include the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. Proprietary fund types include enterprise funds and internal service funds. Fiduciary fund types include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds, and agency funds.

FUNDING TECHNIQUE - Procedures to minimize the time between the transfer of funds from the federal government and the payment of funds for program purposes by the state.

FURNISHINGS AND EQUIPMENT - Refer to EQUIPMENT.

Accounting Terms Glossary and Definitions
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