Operating Budget 2025-2026

GLOSSARY OF TERMS

Accrual Basis

A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Revenues are recognized in the accounting period in which they are earned (goods or services are delivered) and become measureable. Expenditures are recognized in the period incurred (products are consumed), if measurable. Paying the principal amount of a debt issue through periodic payments. Amortization payments include interest and any payment on principal. Official annual financial report of a government. It is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Government Accounting Standards Board (GASB). An authorization granted by Town Council to a specified unit of the Town government to fund expenditures and to incur obligations for specific purposes. It is limited in amount and as to the time when it may be spent, usually expiring at the end of the fiscal year. The official valuation of real property by the Montgomery County Assessor as a basis for levying property taxes. The ratio which an assessed value of a taxed item bears to market value of that item. In the Town of Blacksburg, real estate is assessed every four years by Montgomery County assessors at 100 percent of market value. Resources owned or held by a government, which has monetary value. Accounting method that determines when revenues, expenditures, expenses, and transfers (and the related assets and liabilities) are recognized in accounts and reported in financial statements. The two bases of governmental accounting include accrual (or full accrual) and modified accrual. Unexpended funds from the previous fiscal year, which may be used to fund payments during the current fiscal year. This is also referred to as a carryover balance. 193 A budget in which revenues equal or exceed appropriations.

Amortization

Annual Comprehensive Financial Report (ACFR)

Appropriation

Assessment

Assessment Ratio

Asset

Balanced Budget

Basis of Accounting

Beginning Balance