Glossary
A
ABC Flexibility
In 1996, the General Assembly approved a law to give the State Board of Education the authority to implement the ABCs. The ABCs assign more responsibility at the school building level and allow schools flexibility to use funds as they are most needed at the school.
ABC Incentive Award
To provide funding in the form of bonuses to teachers and teacher assistants that meet or exceed the expected levels of performance in accordance with the ABC's of Public Education Program.
ABC Program
The legislature of the State of North Carolina passed a law in 1995 directing the State Board of Education to: "examine the structure and functions of the state public school system with a view to improving student performance, to increasing local flexibility and control, and promoting economy and efficiency." In 1996 the State Board was given the authority to set student achievement goals for every public school in North Carolina.
Academically Gifted (AG)
The Academically Gifted program provides an appropriately challenging educational program for students who perform, or show potential for performing, at remarkably high levels of accomplishment when compared to others of their age, experience or environment.
Accelerated Learning Program (ALP)
This program includes the development of an individualized learning plan for each student and extended learning time. The ALP will use North Carolina Standard Course of Study in English Language Arts and Mathematics as the basis for its curriculum.
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.
Activity
Department efforts which contribute to the achievement of a specific set of program objectives; the smallest unit of the program budget.
Ad Valorem Taxes
Commonly referred to as property taxes, are levied on both real and property according to the property's valuation and the tax rate.
Allot
To divide an appropriation into amounts which may be encumbered or expended during an allotment period.
Allotment
Allocation of state and federal funds to Local Education Agencies.
Annualize
Taking changes that occurred mid-year and calculating their cost for a full year, for the purpose of preparing an annual budget.
Appropriated Fund Balance
Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues, as those figures stated at the close of the fiscal year next preceding the budget year.
Appropriation
A legal authorization to incur obligations and to make expenditures for specific purposes. An appropriation is usually limited in amount and as to the time when it may be expended.
Assessed Ratio
The ratio at which the tax rate is applied to the tax base.
Assessed Valuation
The valuation set upon real estate and certain personal property by the assessor as a basis for levying property taxes.
Asset
Resources owned or held by a government, which have monetary value.
Attrition
A method of achieving a reduction in personnel by not refilling the positions vacated through resignation, reassignment, transfer, retirement, or means other than layoffs.
Authorized Positions
Employee positions, which are authorized in the adopted budget, to be filled during the year.
Available (Undesignated) Fund Balance
Funds remaining from the prior year which are available for appropriation and expenditure in the current year.
Average Daily Attendance (ADA)
Attendance is the presence of a student on days when school is in session. A student is counted as present only when he/she is actually at school, present at another activity sponsored by the school as part of the school's program, or personally supervised by a member of staff. The total number of days of attendance for all students divided by the total number of school days in a given period gives the average daily attendance.
Average Daily Membership (ADM)
The sum of the number of days in membership for all students in individual school units, divided by the number of school days in the term. Allotments for each LEA will be made on the basis of the higher of the first two months total projected ADM for the current year or the higher of the first two months total prior year ADM.
B
Base Budget
Cost of continuing existing levels of service in the current budget year.
Basic Education Program (BEP)
A state plan aimed at improving the quality of education by requiring school units to offer a basic education curriculum, reduce class size, and provide expanded resource assistance. The Basic Education Program was developed in response to the School Reform Act passed by the June 1984 General Assembly. Initial funding for the BEP was provided in 1985-86.
Behavioral Support
A service provided to a special group of students with a variety of problems and circumstances. To be certified as a Behavioral Support class member, each student must fit all of the following criteria: be under 18, have been diagnosed as emotionally, mentally, or neurologically handicapped, have a history of violent or assaultive behavior against self or others, not already be receiving services appropriate to the child's needs, and have been involved with juvenile court, or institutionalized.
Bond
A long-term I.O.U. or promise to pay. It is a promise to repay a specified amount of money (the face amount of the bond) on a particular date (the maturity date). Bonds are primarily used to finance capital projects.
Bond Refinancing
The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions.
Budget
A plan proposed by a board of education for raising and spending money for specified school programs, functions, activities, or objectives during a fiscal year. A detailed annual operating plan expressed in terms of estimated revenues and expenses, stated in financial terms, for conducting programs and related services in the school system. The budget is a forecast of the projected cost of implementing the goals, objectives, and policies of the board, as well as any needed improvements in programs and support services planned by the board.
Budget Amendment
The primary budget manager would submit a budget amendment when new funds need to be added to the budget or if funds need to be removed from the budget.
Budget by Priorities
A modified zero-based budget format, which establishes the budget by levels and in priority order.
Budget Calendar
The schedule of key dates used in the preparation and adoption of the annual budget.
Budget Resolution
The board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board deems sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education. All monies received and expended by a local school administrative unit should be included in the school budget resolution. No local school administrative unit may expend any monies, regardless of their source (including monies derived from federal, state, or private sources), except in accordance with a budget resolution.
Budget Transfer
The primary budget manager would submit a budget transfer when funds are transfer between level codes within program.
Budget Year
The fiscal year for which a budget is proposed and a budget resolution is adopted (July 1 to June 30).
Budgetary Basis
This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual.
Budgetary Control
The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources.
C
CAFR
Comprehensive Annual Financial Report.
Capital Assets
Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets.
Capital Budget
The appropriation of bonds or operating revenue for improvements to facilities, and other infrastructure.
Capital Improvement
Expenditures related to the acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastruture.
Capital Outlay
Fixed assets, which have a value of $5,000 or more and have a useful economic lifetime of more than one year.
Capital Outlay Fund
Appropriations for:
a. The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages.
b. The acquisition, construction, reconstruction, enlargement, renovations, or replacement of buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance.
c. The acquisition or replacement of furniture and furnishings, instructional apparatus, data-processing equipment, business machines, and similar items of furnishings and equipment.
d. The acquisition of school buses as additions to the fleet.
e. The acquisition of activity buses and other motor vehicles.
f. Such other objects of expenditure as may be assigned to the capital outlay fund by the uniform budget format.
The cost of acquiring or constructing a new building, or reconstructing, enlarging or renovation of existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; finance charges, the cost of plans, specifications, studies, reports, and surveys, legal expenses, and all other costs necessary or incidental to the construction, reconstruction, enlargement or renovation.
Capital Project
Major construction, acquisition, or renovation activities, which add value to a government's physical assets or significantly increase their useful life. Also called capital improvements.
Carryover
Funds appropriated but unspent in the first fiscal year which are brought forward for expenditure in the succeeding fiscal year(s).
Cash Basis
A basis of accounting in which a transaction is recognized only when cash is increased or decreased.
Categorical Allotments
Local school systems may use this funding to purchase all services necessary to address the needs of a specific population or service. The local school system must operate within the allotted funds. These funds may be used to hire personnel such as teachers, teacher assistants, and instructional support personnel or to provide a service such as transportation, staff development, or to purchase supplies and materials. Examples: At Risk Student Services, Transportation, Children with Disabilities.
Categorical Funds
A dollar allotment which may be used to fund positions and/or other support such as supplies, materials, etc. for that particular program.
Categorical Grants
A grant received from another governmental unit to be used or expended on specific programs.
Category I Project
Acquisition of real property and acquisition, construction, reconstruction, enlargement, renovations, or replacement of buildings and other structures for school system purposes.
Category II Project
Acquisition or replacement of furniture, furnishings, and equipment.
Category III Project
Acquisition of school buses, activity buses, and other motor vehicles.
CDC
Career Development Coordinator
Charter Schools
A public school operated by a group of parents, teachers, and/or community members as a semi-autonomous school of choice within a school district operating under a "charter" with the State Board of Education. The final approval on all charters is granted by the State Board of Education. In addition, the charter school must sign a contract with the local board of education laying out the relationship between the charter school and the local board of education. Charter schools are designed to give significant autonomy to individual schools and in turn hold these schools accountable for results.
CIC
Curriculum Integration Coordinator
Co-Curricular Instructional Programs
Experiences comprised of a group of school-sponsored activities, under the guidance or supervision of qualified adults, designed to provide opportunities for pupils to participate in such experiences on an individual basis, in small groups, or in large groups at school events, public events or a combination of these for such purposes as motivation, enjoyment, and improvement of skills. In practice, participation usually is not required and credit is not given.
Community Services
Activities that are not directly related to the provision of education for pupils. These include such services as community recreation programs, civic activities, public libraries, programs of custody and care of children, and community welfare activities provided by the local school administrative unit for the community as a whole or some segment of the community.
Constant or Real Dollars
The presentation of dollar amounts adjusted for inflation to reflect the real purchasing power of money as compared to a certain point in time in the past.
Consumer Price Index (CPI)
A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation).
Contingency
A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.
Contractual Services
Services rendered to a government by private firms, individuals, or other governmental agencies. Examples include utilities, rent, maintenance agreements, and professional consulting services.
Cost Center Code
The cost center code consists of four numerical digits and specifies the school, central office department, or central office division of the school system at which the expenditure is to be incurred.
Current Expense
Those expenditures of a recurring nature covering services, supplies, equipment, and payments to individuals or other agencies.
D
Days Employed
The number of calendar days that an individual is employed during a month.
Days Paid
The actual number of days for which pay was received.
Debt Service
The cost of paying principal and interest on borrowed money according to a predetermined payment schedule.
Dedicated Tax
A tax levied to support a specific government program or purpose.
Deficit
The excess of an entity's liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period.
Department
The basis organizational unit of government which is functionally unique in its delivery of services.
Development-related Fees
Those fees and charges generated by building, development and growth in a community. Included are building and street permits, development review fees, and zoning, platting and subdivision fees.
Disbursement
The expenditures of moneis from an account.
Discretionary Grants
Grants awarding funds following a competitive review process on a national level. Proposals are reviewed and scored by knowledgeable individuals outside the federal government. Awards are then made to the highest-scoring proposals. There are eligibility requirements for discretionary grant competitions which limit who may compete for a grant.
Distinguished Budget Presentation Awards Program
A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents.
Dollar Allotments
Local school systems can hire employees or purchase goods for a specific purpose, but the local school system must operate within the allotted dollar amount. Examples: Textbooks, Central Office Administration, Teacher Assistants.
Dollar per ADM
LEA's Initial Allotment divided by the allotted ADM for that LEA. Charter Schools receive an amount equal to the state funded dollars per ADM for the LEA in which the school is located or (for new charters) in which the student was previously enrolled.
Dollars per Headcount
Funds generated for school-aged children with special needs divided by the LEA's April 1 total headcount (not capped). Charter Schools receive an amount equal to the LEA's state funded dollars per headcount for the LEA in which the child was identified.
DPI
Department of Public Instruction.
Dropout
A student who leaves school before graduation or completion of a program of study for any reason except death or transfer to another school. Students drop out of school for many reasons - academic failure, discipline problems, employment, illness, marriage, family instability, and/or dislike of school.
E
EHA
Education of the Handicapped Act
Employee (or Fringe) Benefits
Contributions made by a government to meet commitments or obligations for employee fringe benefits. Included are the government's share of costs for Social Security and the various pension, medical, and life insurance plans.
Employee's Duty Station
"Duty Station" is defined as the job location at which the employee spends the majority of his or her working hours. For an employee in travel status, the duty station should be the point where the traveling begins the majority of the time (home or office). The designation of an employee's home as the duty station requires prior approval by the superintendent annually. For a nonexempt employee, the employee's regular workweek is the period of time (hours) for which the salary is intended to provide compensation.
Encumbrance
The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure.
End-of-Course (EOC)
The End-of-Course tests are designed to measure students' knowledge and skills in 10 high school courses in terms of the NC Standard Course of Study, and to determine the extent to which the students are prepared for coursework at the next higher level of study in that subject.
End-of-Grade (EOG)
The End-of-Grade tests are designed to measure student achievement of the knowledge and skills of the North Carolina Course of Study for students in grades three through eight.
Enrollment
Represents the number of pupils registered in the state's public schools. Once a pupil is initially counted in the enrollment figure, he/she remains in that count throughout the school year. Students transferring to the North Carolina public school system from another state or from non-public schools are added to enrollment. Enrollment is not reduced by transfers, withdrawals, deaths, or midyear graduations. The end of the year enrollment thus shows a higher count than the actual number of students in school. Final enrollment, therefore, should not be compared to first month enrollment.
Entitlement
Payments to which local governmental units are entitled, pursuant to an allocation formula determined by the agency providing the monies, usually the state or the federal government.
Entitlement Grants
State grants made in accordance with a formula based on the number of children or students to be served, or on the amount of federal or state money available.
ESEA
Elementary and Secondary Education Act of 1965. This Act was amended by the Improving America Schools Act 1994.
Expenditure
The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service, or settling a loss.
Expense
Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest, or other charges.
Extended Day Program
A program that usually meets other than regular school hours to meet the needs for students who may not otherwise be successful or able to attend a regular school setting. Students may participate in both a regular program and an extended day program; the LEA receives credit in the ADM only where the student spends a major portion of his/her school day.
F
Federal Grant Fund
Appropriations for the expenditure of federal categorical grants made by the Department of Public Instruction and other federal grants allocated directly to the local school administrative unit. These appropriations are categorical in nature; i.e., programs and services for children of low income families, programs and services designed to eliminate the effects of previous discriminatory practices, etc.
Fiscal Policy
A government's policy with respect to revenues, spending, and debt management as these relate to government services, programs, and capital investment. Fiscal policy provides an agreed-upon set of principles for the planning and programming of government budgets and their funding.
Fiscal Year
The twelve-month period of time to which the annual budget applies. By law, all North Carolina school systems must observe a fiscal year that begins on July 1 and ends on June 30.
Fixed Assets
Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.
FLSA
Fair Labor Standards Act.
Forfeited Vacation Days
Forfeited vacation days is when the teacher is required to work on an optional teacher workday, and did not have the opportunity to take vacation at another time. Requires local boards and individual schools to give teachers at least 14 calendar days' notice before requiring a teacher to work instead of taking vacation leave on teacher workdays. The teacher can receive pay for a maximum of six forfeited vacation days.
Formula Grants
State grants made in accordance with a formula based on the number of children or students to be served, or on the amount of federal or state money available.
Full-Time Employee
Full-time employee is one whose regular workweek is thirty or more hours.
Full-Time Equivalent (FTE)
Sum of part-time positions employed when added together equate to a full-time position used within classification. Example: Two one-half time positions equate to one full-time equivalent position.
Function
A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible.
Function Code
The function code consists of four numeric digits and describes the purpose for which the activity exists or the type of balance sheet account.
Fund
An independent fiscal and accounting entity consisting of cash and other resources together with all related liabilities, obligations, reserves, and equities which are segregated by appropriate accounting techniques for the purpose of carrying on specific activities or attaining certain objectives in accordance with established legal regulations, restrictions, or limitations.
Fund Balance
The excess of the assets of a fund over its liabilities and reserves at the beginning or ending of a fiscal year.
Fund Code
The fund consists of two numeric digits. The fund is an independent fiscal and accounting entity with a self-balancing set of accounts. The funding code indicates whether state, federal, or local monies are involved.
Future Use Code
The future use code consists of three numerical digits for future expansion.
G
GAAP
Generally Accepted Accounting Principals. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.
GASB
Governmental Accounting Standards Board.
General Obligation (G.O.) Bond
This type of bond is backed only by the full faith, credit and taxing power of the government.
Goal
A statement of broad direction, purpose or intent based on the needs of the community. A goal is general and timeless.
Grade Level Proficiency
Performance standards, called achievement levels, are one way that scores on the North Carolina End-of-Course Tests are reported. Students that score at or above level III are considered to be grade level proficient. Listed below are the four achievement levels:
Level I: Student performing at this level do not have sufficient mastery of knowledge and skills of the course to be successful at a more advanced level in the content area.
Level II: Students performing at this level demonstrate inconsistent mastery of knowledge and skills of the course and are minimally prepared to be successful at a more advanced level in the content area.
Level III: Students performing at this level consistently demonstrate mastery of the course subject matter and skills and are well prepared for a more advanced level in the content area.
Level IV: Students performing at this level consistently perform in a superior manner clearly beyond that required to be proficient in the course subject matter and skills and are very well prepared for a more advanced level in the content area.
Grant
A contribution by a government or other organization to support a particular function. Grants may be classified as either operational or capital, depending upon the grantee.
H
Handicapped (Children with Disabilities)
Mentally retarded, hearing impaired, deaf, speech/language impaired, visually handicapped, autistic, behaviorally/emotionally disturbed, orthopedically impaired, other health impaired, traumatic brain injury, deaf-blind, multi-handicapped, or specific learning disabled students who need special education and related services.
Headcount
This term refers to the process of actually counting the number of pupils who are defined as Children with Special Needs or Limited English Proficient. For federal purposes, children with special needs include only the handicapped. For state purposes, children with special needs include handicapped and pregnant students.
The federal government requires headcounts of children with special needs who have been properly identified, are receiving special education and related services on the headcount day, and have an individual education plan (IEP) or an individualized family service plan (IFSP). The December 1 IDEA Title VI-B Handicapped headcount includes those children ages 3-21 who are being served by LEAs, Charter Schools, or state-operated programs. State law requires an adjusted headcount on April 1 of children ages 5-20 who are being served by LEAs or Charter Schools and ages 3 to Pre-K 5 for Preschool handicapped funds. The April headcount includes additions or deletions to the December 1 headcounts and is used for state funding purposes.
Hourly
An employee who fills a temporary or short-term position. Such employees provide contingency staffing for government operations during peak workloads, or to address temporary staffing needs. Hourly employees are paid on a per-hour basis, and receive limited benefits.
Hours Worked
The time for which an employee is entitled to compensation under the FLSA. Compensation is required for the time an employee is required to be on duty, on the employer's premises or at a prescribed workplace, and for the time the employee is "suffered or permitted" to work, whether or not the employee is requested to do so. Hours worked can include idle time and time spent in incidental activities, as well as in productive labor. For example, if an employer permits an employee to continue working after the end of a shift, the additional hours would be part of hours worked.
I
I.A.S.A.
Improving America Schools Act of 1994 which reauthorizes the Elementary and Secondary Education Act of 1965.
I.D.E.A
Individuals with Disabilities Education Act replaced the EHA Educational of Handicapped Act for Title VI-B. Includes Title VI-B and Title VI-B Preschool Handicapped.
Indirect Cost
A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned to one service.
Individual Pupil Records
Records of attendance, grade, address, etc., for each pupil.
Infrastructure
The physical assets of a government.
Initial Allotments
The allocation of state and federal funds to LEAs occurring after adjournment of the General Assembly.
Instructional Class Time
In order to be paid as a state-allotted position, the teacher must spend a major portion of the school day providing classroom instruction and shall not be used for administrative duties in either the central or school offices. A major portion of a school day is a minimum of: 3 of 5 periods, 4 of 6 periods, or 5 of 7 periods.
Instructional Personnel
Instructional personnel means all classroom teachers, librarians, and also instructional assistants. Counselors who regularly teach any part of the day will be judged to be full time instructional personnel.
Instructional Programs
Activities dealing directly with the teaching of pupils, or the interaction between teacher and pupils. Teaching may be provided for pupils in school classroom, in another location such as a home or hospital, and in other learning situations such as those involving co-curricular activities. It may also be provided through some other approved medium such as television, radio, telephone, and correspondence. Included here are the activities of aides or assistants of any type (clerks, graders, teaching machines, etc.) which directly assist in the instructional process.
Instructional Support
Certified personnel who implement locally designed initiatives which provide services to students who are at risk of school failure as well as the students' families. It is the intent of the General Assembly that the positions must be used first for counselors, then for social workers and other personnel which have a direct instructional relationship to students or teachers to help reduce violence in the public schools.
Interfund Transfers
The movement of monies between funds of the same governmental entity.
Intergovernmental Revenue
Funds received from federal, state and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.
Interim Budget
In case the adoption of the budget resolution is delayed until after July 1, the board of education shall make interim appropriations for the purpose of paying salaries and the usual ordinary expenses of the school administrative unit for the interval between the beginning of the fiscal year and the adoption of the budget resolution.
Internal Service Charges
The charges to user departments for internal services provided by another government agency, such as processing, or insurance funded from a central pool.
Internet
This is a collection of international computer networks that links schools and universities, businesses, government agencies, libraries, nonprofit organizations, and individuals. It is an outgrowth of a government research project called Arpanet, created to link government agencies and universities. When it was developed in 1969, electronic commerce was nowhere in the plan. Now businesses run more than 60 percent of the networks that comprise the Internet. An estimated 20 million people in 140 countries have access.
L
Lapsing Appropriation
An appropriation made for a certain period of time, generally for the budget year. At the end of the specified period, any unexpected or unencumbered balance lapses or ends, unless otherwise provided by law.
LEA
Local Education Agency.
Level I Budget
All state appropriations, federal appropriations, food service operations, categorical items, and 90% of the amended current year adopted budget for the county appropriation.
Level II Budget
Provides staffing and nonpersonnel dollars until 100% of the current year adopted county appropriation is attained.
Level III Budget
Provides staffing and nonpersonnel dollars in priority increments to maintain the same level of service as the current year.
Level IV Budget
Priorities to add new staffing and additional nonpersonnel resources to provide new and/or expanded programs and services.
Level Code
The level code consists of four numerical digits. For schools and instructional programs, the level code specifies the grade or subject area in the school for which an expenditure is proposed.
Levy
To impose taxes for the support of government activities.
Line-item Budget
A budget prepared along departmental lines that focuses on what is to be bought.
Local Current Expense Fund
Appropriations for the current operating expenses of the local school administrative unit other than appropriations included in the state public school fund and the federal grant fund. These appropriations shall be funded by moneys made available to the local school administrative unit by the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit, state money disbursed directly to the local school administrative unit, and other moneys made available or accruing to the local school administrative unit for current operating expenses of the public school system.
M
Materials and Supplies
Expendable materials and operating supplies necessary to conduct departmental operations.
Medicaid Ð Administrative Outreach
Administrative and outreach services provide an infrastructure in support and the provision of direct services.
Medicaid Ð Direct Services
Defined in N.C. as evaluation and therapy services in the areas of: occupational therapy, physical therapy, speech therapy, psychological services and audiological services. These are provided directly to students and are documented on their IEP's.
Modified Accrual
The basis of budgeting for the school system. Expenditures are recognized when encumbered and revenues are recognized when collected.
Modified Zero-Based Budgeting
A technique that enables management to identify and analyze what is going to be done, set goals and objectives, make operating decisions, and evaluate work loads and responsibilities during the budgeting process. In zero-base budgeting the entire budget request (current and expansion) can be viewed as a series of supplemental requests to a zero base. The process starts with consideration of impacts, consequences, and levels of service desired. Priorities are fixed among programs and activities.
Months of Employment
A unit of employment corresponding to a calendar month. The state allots a certain number of months of employment which can be assigned to a position, or a portion of a position, at the discretion of the LEA. Months of employment pertain to all position allotments which include Vocational Education and School Building Administration. Example: If an LEA is allotted 100 months of employment, that LEA can hire 10 Vocational Education teachers for 10 months; or 8 teachers for 12 months and 1 teacher for 4 months; or any other combination which equals 100 months. Each allotment category must be reviewed for any special restrictions.
Multiple Enterprise Fund
The enterprise fund accounts for the operations of the Board's child nutrition services program, tuition programs, and print shop. The intent is that the costs, including depreciation, of providing food services, tuition programs, and print shop services to the individual schools be partially recovered by user charges.
N
NBPTS
National Board for Professional Teaching Standards
NCDPI
North Carolina Department of Public Instruction.
NCWise
The North Carolina Windows of Information for Students Education is the new student information system being implemented by the Department of Public Instruction across the State.
Nominal Dollars
The presentation of dollar amounts not adjusted for inflation. Adjusting for inflation would be done to reflect the real purchasing power of money today.
Noninstructional Support
Support positions and nonpersonnel dollars that do not have a direct instructional relationship, such as clerical assistants and custodians.
Non-Programmed Charges
Conduit-type (outgoing transfers) payments to other local school administrative units or other administrative units in the state or in another state, and transfers from one fund to another fund in the local school administrative unit.
Object Codes
The object code indicates the service or commodity obtained as a result of a specific expenditure. Seven major object categories are used in the Chart of Accounts:
100 Salaries
200 Employee Benefits
300 Purchased Services
400 Supplies and Materials
500 Capital Outlay
600 Other Objects
700 Transfers
These broad categories are subdivided to obtain more detailed information about objects of expenditures. A three-digit serial number is used to provide detailed information.
Object of Expenditure
An expenditure classification, referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, and furniture.
Objective
Something to be accomplished in specific, well-defined, and measurable terms and that is achievable within a specific time frame.
Obligations
Amounts which a government may be legally required to meet. They include not only actual liabilities, but also encumbrances not yet paid.
Operating Expenses
The cost for personnel, materials, and equipment required for a department to function.
Operating Revenue
Funds that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day services.
OSBM
Official of State Budget Management.
Out-of-state Travel
Out-of-state travel status begins when the employee leaves the state and remains in effect until the employee returns to the state. However, in-state allowances and reimbursement rates apply when employees and other qualified official travelers use hotel and meal facilities located in North Carolina immediately prior to and returning from out-of-state travel during the same travel period.
Output Indicator
A unit of work accomplished, without reference to the resources required to do the work. Output indicators do not reflect the effectiveness or efficiency of the work performed.
P
P & C
Purchasing and Contract - State agency that controls purchasing supplies and equipment.
Part-time Employee
Part-time employee means an employee who works at least one-half of the hours worked by full-time employees in that class of work provided that it is not less than twenty hours per week.
Pay-as-you-go Basis
A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing.
Pay Level
A level between 4-52 found in the NC Public School Personnel State Salary Schedule which corresponds to the actual monthly or annual salary (not including salary supplements) based on the individual's position and classification. For each position and within each administrator classification, there are several levels.
Pay Period
There are twelve pay periods per fiscal year corresponding to the twelve calendar months. The first pay period for the fiscal year is designated as "01" which refers to July, with the designation of "12" for June. The pay period designation correlates to the calendar month in which payment is made.
Performance Budget
A budget wherein expenditures are based primarily upon measurable performance of activities and work programs.
Performance Indicators
Specific quantitative and qualitative measures of work performed as an objective of specific departments or programs.
Performance Measure
Data collected to determine how effectively or efficiently a program is at achieving its objectives.
Permanent Employee
Permanent employee means an employee who is either: (a) employed with the expectation of permanent employment, to fill a position that is to be permanent if present needs and funds continue; or (b) employed, for at least six full consecutive monthly pay periods within one contract, to replace one or more employees who are on leave of absence without pay. Permanent employees may be employed in a full-time or part-time status.
Per Pupil Allotment
An allocation based on a per student basis as determined by the board of education. All dollar amounts are established by grade level and are based on the current year fortieth-day enrollment figures.
Per Pupil Expenditure
The annual current expenditures divided by the final average daily membership for the year.
Personal Services
Expenditures for salaries, wages, and fringe benefits of a government's employees.
Planning Allotments
The tentative allocation of state and federal funds to LEAs to provide information for budgeting purposes. These allotments occur during March preceding the fiscal year for which the initial allotment will be made.
Position
Positions equate to the full-time equivalent individuals that can be assigned for the employment period represented by the allotment category. For example, a position in the classroom teacher allotment represents an employment period of 10 months, and in the principal allotment category 12 months. The number of full-time equivalent individuals that can be employed is limited to the number of months associated with the positions allotted by the state.
Position Allotments
The State allots positions to a local school system for a specific purpose. The local school system pays whatever is required to hire certified teachers and other educators, based on the State Salary Schedule, without being limited to a specific dollar amount. Each local school system will have a different average salary based on the certified personnel's experience and education. Example: Teachers, School Building Administration, Instructional Support Personnel.
PRC
Program Report Code.
Primary Budget Manager
The primary budget managers are all principals and cabinet members. Cabinet members may choose to establish central office administrators as primary budget manager.
Prior-Year Encumbrances
Obligations from previous fiscal years in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated.
Program
A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the government is responsible.
Program Budget
A budget which allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments.
Program Code
The program code consists of three numeric digits. The program describes a plan of activity or a funding for a particular activity. This code allows the unit a framework for classifying expenditures by program to determine cost. For a complete listing of the program codes, please refer to the NC Public Schools Uniform Chart of Accounts.
Program Enhancement
Positions allotted for art, music, physical education, dance, drama, and foreign language. Also used to reduce class size.
Program Performance Budget
A method of budgeting whereby the services provided to the residents are broken down in identifiable service programs or performance units. A unit can be a department, a division, or a workgroup. Each program has an identifiable service or output and objectives to effectively provide the service. The effectiveness and efficiency of providing, the service by the program report is measured by performance indicators.
Program Revenue (Income)
Revenues earned by a program, including fees for services, license and permit fees, and fines.
Projected Average Daily Membership
The process of comparing prior year and current year best continuous three of first four months Average Daily Membership for the coming year. This is the basis of state allotment for many items.
PTSA
Parent Teacher Student Association.
Purpose
A broad statement of the goals, in terms of meeting public service needs, that a department is organized to meet.
Purpose Code
Purpose means the reason for which something exists or is used. Purpose includes the activities or actions that are performed to accomplish the objectives of a local school administrative unit. The purpose code consists of four numerical digits and is broken down into a function level at the second digit and, where appropriate, into a sub-function level at the third digit. The fourth digit of the purpose code is not in use at this time expect in rare cases and will be indicated in the chart of accounts.
R
Reserve
An account used either to set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose.
Reserves
Reserves are credit balances which record the segregation of assets for some future use and which are, therefore, not available for further appropriation or expenditure.
Resolution
A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute.
Resources
Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances.
Revenue
Sources of income financing the operations of government.
Revenue Bond
This type of bond is backed only by the revenues from a specific enterprise or project, such as a hospital or toll road.
Revenue Codes
Revenues received by a local education agency are classified by source of revenue by category and/or purpose within each source. The major sources of revenue are:
1. State
2. Federal
3. County Appropriation
4. Supplemental Taxes
5. Other revenues
Rollup Balances
The financial computer system will check available balances at the program code level rather that at the individual account level when payments are processed. Expenditures will be allowed as long as funds are available overall in the program. Rollups can be at the level code.
S
Salary
An employee's salary includes: (1) the amount of compensation to which the employee is entitled during the year from the salary schedule, (2) the amount of longevity pay, if any, to which the employee is entitled during the year, and (3) the amount of local supplement, if applicable, to which the employee is entitled during the school year.
Salary Audit
A verification by the Department of Public Instruction that the amount paid to the individual is in accordance with the certified salary schedule.
SAP
Student Assistant Program.
SBE
State Board of Education.
Scholastic Aptitude Test (SAT)
The SAT is a national exam designed to measure a student's chance of success at the college level.
School
An organizational subdivision of a school system consisting of a group of pupils composed of one or more grade groups, organized as one unit with an assigned principal, or person acting in the capacity of principal, to give instruction of the type defined in the NC Standard Course of Study, and housed in a school plant of one or more buildings.
School Improvement Plan
All LEAs must delineate a set of student performance goals aimed at increasing student achievement. These goals shall address specific, measurable goals for all student performance indicators adopted by the state board. Locally developed student performance goals must be stated in terms of three-to five-year student performance goals, including annual milestones to measure progress in meeting those goals.
Secondary Budget Manager
Secondary budget managers are assistant principals or a cabinet member may establish central office administrators as secondary budget manager.
Self-Contained Classroom - Exceptional Child
A separate class for exceptional children receiving special education for more than 60% of the school day.
Self-Contained - Exceptional Child
A self-contained student refers to an exceptional student who is taught in a separate class by exceptional children teachers for at least 60% of his or her instructional day.
Senate Bill 2 (SB2)
The Flexibility and Accountability Statute approved by the 1989 General Assembly (Senate Bill 2) which allows more flexibility and involvement in decision making by teachers, principals, and parents in their efforts to improve student achievement. The performance-based accountability program is voluntary and each unit is participating. Units submit a local school improvement plan to the State Board of Education with (1) three-year student performance goals; (2) a differentiated pay plan (if participating in differentiated pay); and (3) a request for waiver of state laws and regulations that may inhibit the local accountability goals.
Service Lease
A lease under which the lessor maintains and services the asset.
Service Level
Services or products which comprised actual or expected output of a given program. Focus is on results, not measures of workload.
Short Term Disability
The length of short-term disability includes two months waiting period and 12 months of benefits for a total of 14 months.
SIMS Ð Students Information Management System
This system is responsible for monitoring local boards of education compliance with class size maximums in accordance with G. S. 115c-301.
SIP
School Improvement Plan.
Site-based Budgeting
A decentralized budget process whereby budget preparation and development are based on individual school (and department) sites.
Source of Revenue
Revenues are classified according to their source or point of origin.
Special Categorical Funds
A dollar allotment which may be used to fund positions or other support such as supplies, materials, etc., for that particular program.
SST
Support Services Teacher.
State Allotted Positions/Months of Employment
Positions or months of employment allotted and paid from the State Public School Fund.
State Formula
The calculations used by the state to fund various allotments to the local education agency. Formulas can be based on number of positions calculated on average daily membership (ADM), months of employment (MOE), or flat dollar amounts.
State Public School Fund
Appropriations for the current operating expenses of the public school system from moneys made available to the local school administrative unit by the State Board of Education.
Student Accounting
The data collection system regarding student enrollment, membership, attendance, and withdrawal from membership in the public schools. The Student Information Management System (SIMS), or other Uniform Education Reporting System (UERS) compliant systems, are the official means by which this data is reported to the Department of Public Instruction.
Subsistence
Subsistence is an allowance related to lodging, and meal costs, and gratuities thereon.
Substitute Teacher
Substitute teacher means a person whose credentials have been evaluated by the local superintendent, who has been determined to be capable of performing substitute teaching duties, and who has been approved by the local board of education.
Supplemental Appropriation
An additional appropriation made by the governing body after the budget year or biennium has started.
Supplemental Request
Programs and services which departments would like to have added (in priority order) over their target budget, or if revenue received is greater than anticipated.
Supporting Services
Supporting services are those services that provide administrative, technical, personal, and logistical support to facilitate and enhance instruction. Supporting services exist to sustain and enhance instruction, rather that add entities within themselves.
T
Target Budget
Desirable expenditure levels provided to departments in developing the coming year's recommended budget. Based on the prior year's adopted budget, excluding one-time expenditures, projected revenues, and reserve requirements.
Tax Levy
The resultant product when the tax rate per one hundred dollars is multiplied by the tax base.
Taxes
Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments.
Teacher Certification
Area in which a teacher is qualified and certified to teach.
Tenth Day Adjustments
Adjustments to specific allotments following receipt of actual membership data for the tenth day of school.
Textbooks
The textbook allocation is a state source of funds. The textbook account is a credit balance from the state.
Title I
A federally-funded categorical and supplementary program which provides federal assistance to state and local school systems through the Elementary and Secondary Education Act of 1965 (ESEA). The program was reauthorized in 1994, by the Improving America's Schools Act. Its goals are to help low-achieving children succeed in the classroom, attain grade level proficiency, and acquire the higher level skills that all children are expected to master.
Title VI
The purpose of Title VI is to provide formula grants to assist states in developing the assessments required under the No Child Left Behind ESEA legislation, and competitive grants to states to support collaborative efforts with Institutions of Higher Education.
Trainable Mentally Handicapped
Trainable mentally handicapped (TMH) refers to a student who is significantly below general cognitive functioning and who has a reduced rate of learning which adversely affects that student's educational performance.
Transfers In/Out
Amounts transferred from one fund to another to assist in financing the services for the recipient fund.
Trust and Agency Fund
Revenues and expenditures for trust and agency funds as needed by the local education agency to account for trust and agency arrangements such as endowments, funds of individuals held by the School Finance Officer, and special funds of individual schools.
Tydings Amendment
Federal law provides that certain federal funds not obligated during the first year of allotment shall remain available for obligation and expenditure for one additional year. Federal grant periods vary. Therefore, each grant must be reviewed to determine if the Tydings Amendment will apply. Since the federal fiscal year begins October 1 and the state fiscal year begins July 1, many grant periods can be active up to 27 months when provisions of the Tydings Amendment are applicable.
U
UERS
Uniform Education Reporting System. The comprehensive system by which LEAs and Charter Schools report data electronically to the Department of Public Instruction. Some components of UERS include SIMS (Student Information Management System), and expenditure reporting in compliance with the Uniform Chart of Accounts.
Undesignated Fund Balance
Portion of the total fund balance available for appropriation which is uncommitted at year end.
Unencumbered Balance
The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes.
Uniform Budget Format
The State Board of Education, in cooperation with the Local Government Commission, shall cause to be prepared and promulgated a standard budget format for use by local school administrative units throughout the state. The format shall be organized to enable the board of education and the board of county commissioners to accomplish the local fiscal policies embodied in the uniform budget format, facilitate the control and fiscal management of the local school administrative unit, and facilitate the gathering of accurate and reliable fiscal data on the operation of the public school system.
Uniform Chart of Accounts
In 1975, the General Assembly enacted a law requiring a uniform accounting system for all local education agencies effective July 1, 1976. The NC Public Schools Uniform Chart of Accounts is a complete listing of account codes for recording public school expenditures by different dimensions available for LEAs. It classifies the individual accounts by fund, function, program report code, and object.
Unreserved Fund Balance
The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation.
USDA
United State Department of Agriculture.
User Charges
The payment of a fee for direct receipt of a public service by the party who benefits from the service.
Variable Cost
A cost that increases/decreases with increases/decreases in the amount of service provided such as the payment of a salary.
W
Waiver for Unavailable Categories
Provides a separate account into which LEAs may transfer fund to cover the purchases of items (not personnel) not found in the Chart of Accounts for other categories.
WAN
Wide Area Network.
Workload Indicator
A unit of work to be done.
Workweek
For overtime purposes, according to the Fair Labor Standards Act, the workweek is a fixed and regularly recurring period of 168 hours - seven consecutive 24-hour periods. A nonexempt employee is entitled to overtime at time and one-half for all hours worked over 40 in a workweek. It may begin on any day of the week and any hour of the day established by the employer.
Y
Year Round Education
Reorganization of the school calendar into instructional blocks with vacations distributed across the calendar year so that learning is continuous throughout the year.
Year Round Pay
Annual salary distributed in twelve payments for personnel employed less than twelve months in a year round school.