TERMS AND DEFINITIONS - 7010
The following terms and definitions are commonly used in statewide accounting and fiscal policies and procedures in SAM Chapters 7000 through 19000.
Allotment: The approved division of an amount (usually of an appropriation) to be expended for a particular purpose during a specified time period. An allotment is generally authorized on a line item expenditure basis or by program or organization.
Annual Comprehensive Financial Report (ACFR): The annual financial report prepared by the State Controller’s Office in accordance with Generally Accepted Accounting Principles per Government Code section 12460.
Appropriation: Authorization for a specific agency to make expenditures or create obligations from a specific fund for a specific purpose. It is usually limited in amount and period of time during which the expenditure is to be recognized.
Basis of Accounting: The timing of when transactions or events are recognized for financial reporting purposes.
Budgetary/Legal Basis Annual Report (BLBAR): The annual financial report prepared on the same basis as the applicable Governor’s Budget and Budget Act per Government Code sections 12460 and 13344Government Code section 13344.
Department: Includes every state government office, officer, agency, department, division, bureau, board, and commission in the State of California.
Encumbrances: The commitment of all or part of an appropriation. Encumbrances represent valid obligations related to unfilled purchase orders or unfulfilled contracts. Outstanding encumbrances are recognized as budgetary expenditures in the individual department’s budget documents and their individual annual financial reports.
Finance: The Department of Finance.
Financial Information System for California (FI$Cal): The state’s integrated financial and administrative information technology system that supports accounting, budgeting, cash management, and procurement functions.
Fund Condition Statement (FCS): A budget display in the Governor’s Budget summarizing the operations of a fund for past, current, and budget years. Fund Condition Statements are required for all special funds. Other funds are displayed at the discretion of the Department of Finance.
Generally Accepted Accounting Principles (GAAP): The accounting principles, rules, conventions, and procedures used for accounting and financial reporting. GAAP provides authoritative standards and commonly accepted methods of recording and reporting accounting information. GAAP’s objective is to improve clarity, consistency, and comparability of financial data.
Governmental Accounting Standards Board (GASB): GASB sets the financial accounting and reporting standards for state and local governments.
State Administrative Manual (SAM): A resource for statewide policies, procedures, requirements, and information developed, authored, and issued by the Governor’s Office, Department of Finance, Department of Human Resources, Department of General Services, and the California Department of Technology.
State Leadership Accountability Act (SLAA): The law that requires each state agency head to establish and maintain effective systems of internal control within their state agencies. The SLAA requires all state departments to monitor their internal control systems to minimize fraud, errors, waste, and abuse of government funds. For information on the SLAA, see Government Code sections 13400-13407.
Uniform Codes Manual (UCM): The standardized coding system maintained by the Department of Finance to obtain accurate and comparable records, reports, and statements of all the financial affairs of the state. The UCM defines all accounting and budgetary codes that departments are required to use for reporting budgeted and actual data.