Town of Blacksburg Adopted Operating Budget FY 2027

GLOSSARY OF TERMS ( continued )

Cost-of-Living Adjustment (COLA)

An increase in salaries to offset the adverse effect of inflation on compensation. Funds defined by the State Auditor of Public Accounts to finance and account for the annual payment of principal and interest on bond issues. A cash payment to an outside party, or a transfer of funds to another accounting entity within the Town's financial system. A reservation of funds for an anticipated expenditure prior to actual payment for an item. Funds usually are reserved or encumbered once a contracted obligation has been entered into for an item, but prior to the cash payment actually being disper sed. Funds, defined by the State Auditor of Public Accounts, to account for operations that are financed and operated in a manner similar to private business enterprises. Costs of providing goods or services are financed or recovered, at least in part, through user charges. A decrease in net financial resources. Expenditures include payment in cash for current operating expenses, debt service and capital outlays. A category of funds used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. A twelve month accounting period used for budgeting and financial reporting. The fiscal year for the Town of Blacksburg begins July 1 and ends the following June 30. A pledge of a government’s taxing power to repay debt obligations from any and all revenue sources. A part-time position converted to the decimal equivalent of a full time position based on either 1,950 or 2,080 hours per year. For example, a part-time position working for 20 hours per week would be the equivalent of 0.5 of a full-time position based on 2,080 hours. 206 A separate functional accounting entity within a certain fund type.

Debt Service Funds

Department/Office

Disbursement

Encumbrance

Enterprise Funds

Expenditure

Fiduciary Funds

Fiscal Year (FY)

Full Faith and Credit

Full-Time Equivalent Position (FTE)