PAP.10.2.010 General Definitions

Any term not defined in this section shall be given its ordinary meaning. The following terms, wherever used in this ordinance, shall be construed to apply as follows, except where the context indicates otherwise:

(a) "Account Number" means a group of numbers used to identify the fund, department, and description of an account. For example 171-6110-1900 is broken down as follows: 171 = indirect cost fund, 6110 = supplies and 1900 = project 1 (See Subchapter PAP.10.4).

(b) "Allowable Cost" (as set forth in OMB Circular A-87) means those which meet the following general criteria:

(1) Be reasonable for the performance of the award and be allocable thereto under these principles;

(2) Conform to any limitations or exclusions set forth in these principles or in the award as to types or amount of cost items;

(3) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the organization;

(4) Be accorded consistent treatment;

(5) Be determined in accordance with GAAP (Generally Accepted Accounting Principles);

(6) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period; and

(7) Be adequately documented.

(c) "Asset" means any valuable item that is owned or a future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. Examples include cash and accounts receivable.

(d) "Appropriation" means funds set aside for a specific purpose.

(e) "Balance Sheet" means a statement of the assets, liabilities, and fund balance as of a specified date. Total Assets equal total liabilities plus fund balance.

(f) "Budget" means an itemized summary of probable income and approved expenditures for a given program and period.

(g) "Capital Project Funds" means funds to account for financial resources to be used for the acquisition or construction of major capital facilities.

(h) "Chart of Accounts" means a list of all account numbers used by an organization to record activity into the general ledger.

(i) "Credit" means the right side of an account.

(j) "Debit" means the left side of an account.

(k) "Debt Service Funds" means an account for the accumulation of resources for, and the retirement of, general long-term debt principal and interest.

(l) "Deferred Compensation Fund" means the fund used to account for assets held for employees in accordance with the provisions of Internal Revenue Code Section 457.

(m) "Deferred Revenue" means revenue that is not yet recognized.

(n) "Direct Cost" means any cost which can be specifically identified with a particular cost objective.

(o) "Disbursement" means funds paid out.

(p) "Discretionary Funds" means funds that may be spent as the Tribal Governing Board wishes, subject to any applicable legal constraints.

(q) "Enterprise Funds" means an account for business operations financed and operated in a manner similar to private business enterprises.

(r) "Encumbrance" means commitments related to unperformed contracts for goods or services. As used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of assets reserved for outstanding purchase orders.

(s) "Equipment Purchase" means the expense line item used to record equipment purchased. This expense line should only include items costing $5,000 or more individually. Equipment items of lesser value should be charged to a supply expense line.

(t) "Expense" means a decrease in financial resources.

(u) "Fiduciary Funds" means funds held by a governmental unit in a trustee capacity.

(v) "Financial Department" means the accounting department of the Tribe.

(w) "Fixed Asset" means a single tangible item valued at $2,000 or more with a useful life longer than one year, including buildings, equipment and vehicles and items of a lesser value which are subject to pilferage such as computers.

(x) "Fringe Benefit" means any property, service, cash or cash equivalent provided to an employee by an employer in connection with the performance of services.

(y) "Fund" means a fiscal and accounting entity with a self-balancing set of accounts which is segregated for the purpose of tracking specific activities in accordance with special regulations or restrictions.

(z) "Fund Balance" means the difference between the assets and liabilities of a governmental fund.

(aa) "Generally Accepted Accounting Principles or GAAP" means the rules of accounting established by experienced professional accountants and bodies such as the financial accounting standards board.

(bb) "General Fixed Assets" means capital assets which are not assets of any fund, but rather are assets of the unit as a whole. Most often these assets arise from the expenditures of the financial resources of governmental funds.

(cc) "General Fixed Assets Account Group" means those fixed assets which are not recorded in a proprietary or another fund.

(dd) "General Fund" means accounts for all financial resources except those required to be accounted for in another fund.

(ee) "General Ledger" means a record of monetary transactions of an organization posted in the form of debits and credits.

(ff) "General Long-Term Debt Account Group" means a fund used to account for a government's long term indebtedness that has not been identified as a specific fund liability of a proprietary or trust fund.

(gg) "Government Accounting Standards Board or GASB" means the board which is the authority for establishing governmental accounting standards.

(hh) "Governmental Funds" means the funds used to finance most governmental function.

(ii) "Indirect Cost" means costs incurred for a common or joint purpose benefiting more than one cost objective. Assigning these costs to more than one objective requires an effort that is disproportionate to the results achieved. Examples of indirect costs include fiscal department staff and electricity for the administration building.

(jj) "Internal Service Funds" means funds to account for the financing of goods or services provided by one department to other governmental units.

(kk) "Journal Entry" means a two-sided entry consisting of a debit and a credit used to record information into the general ledger.

(ll) "Liability" means the obligations of an entity, such as accounts payable.

(mm) "Payee" means the one to whom money is to be paid.

(nn) "Post" means to record an item in the general ledger.

(oo) "Proprietary Funds" means funds used to account for governmental activities that are similar to for profit business operations in the private sector.

(pp) "Reasonable Costs" (as set forth in OMB Circular A-87) means a cost which, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. The question of the reasonableness of specific costs must be scrutinized with particular care in connection with organizations or separate divisions thereof which receive the preponderance of their support from awards made by Federal agencies. In determining the reasonableness of a given cost, consideration will be given to:

(1) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization or the performance of the award;

(2) The restraints or requirements imposed by such factors as generally accepted sound business practices, arm's length bargaining, federal and state laws and regulations, and terms and conditions of the award;

(3) Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, and clients, the public at large, and the government; and

(4) Significant deviations from the established practices of the organization which may unjustifiably increase the award costs.

(qq) "Reserved Fund Balance" means those portions of fund balance not appropriable for expenditures or that are legally segregated for a specific future use.

(rr) "Revenue" means an increase in financial resources.

(ss) "Special Revenue Funds" means funds to account for specific revenue sources that are restricted legally to be expended for specific purposes.

(tt) "Statement of Revenues, Expenditures, and Changes in Fund Balance" means a financial statement which shows revenue, expenditures, and changes in fund balance during a specified period of time.

(uu) "Tribal Balance" means a list of the balances of the accounts in a ledger fund by double entry, with the debit and credit balances shown in separate columns. The totals of the debits and credits must be equal for the trial balance to balance.

(vv) "Unallowable Costs" (as set forth in OMB Circular A-87) include but are not limited to the following:

(1) Alcoholic beverages;

(2) Bad debts;

(3) Contingencies (See exceptions, Number 12, OMB Circular A-87);

(4) Contributions and donations;

(5) Entertainment;

(6) Fines and penalties;

(7) Fund raising;

(8) Interest and other financing costs except where authorized under the circular;

(9) Legislative expenses;

(10) Lobbying expenses; and

(11) Under-recovery of costs of other grants or agreements