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Financial Management for Elected Officials January 2013 <br /> <br />Institute for Local Government www.ca-ilg.org 24 <br /> <br /> <br /> <br />Generally Accepted Accounting Principles <br />(GAAP) <br />Uniform minimum standards used by state and local <br />agencies for financial recording and reporting which have <br />been established by the Governmental Accounting <br />Standards Board (sometimes referred to by the acronym <br />GASB). <br /> <br />Governmental Accounting Standards Board <br />(GASB) – <br />The body that sets accounting standards for governmental <br />entities at the state and local levels. <br />Grant A payment of money from one entity to another for a <br />specified purpose, activity or facility. Generally, grants do <br />not have to be repaid by the recipient, as long as the <br />recipient uses the funds for the promised purposes, <br />activities or facilities. <br /> <br />Intergovernmental Revenue Revenues from other public agencies in the form of grants, <br />entitlements, shared revenues or payments in lieu of taxes. <br />Investment Earnings Revenue earned from the investment of public funds. <br />Licenses and Permits These represent the agency’s permission to engage in <br />certain kinds of activities. Local agencies often charge <br />fees designed to reimburse local agency for costs of <br />regulating activities being licensed, such as licensing of <br />animals, bicycles, etc. <br /> <br />Lien A claim on assets, especially property, for the payment of <br />taxes or utility service charges. <br />Liquidity The ability to convert a security into cash promptly with <br />minimum risk of principal. <br />Local Agency Investment Fund (LAIF) A special investment fund in the state treasury into which <br />local agencies may deposit money for investment. <br />Maintenance of Effort (MOE) A requirement often imposed as a condition of receiving <br />certain kinds of funding, that the agency maintain a certain <br />level of spending. The goal of such requirement is to have <br />the funding being provided increase the level of spending <br />on the program (and conversely, avoid having the extra <br />funding be used to replace existing spending). <br />Mandate A state of federal requirement that local agencies perform <br />a task in a particular way or perform a task to meet a <br />particular standard, often without providing the revenues <br />to do so. <br />Page 46 of 109