Accounting

Statewide Accounting glossary

This is a list of terms used within the Washington Administrative and Accounting Manual (WAAM) and within Workday. To find a term, enter it in in the search box, and select 'Apply'.

Term	Category	Definition
Fixed assets		A fixed, physically attached, and permanent improvement or real property. Fixed assets are normally those that are capitalized.
Foundational Data Model (FDM)		The data framework that serves as the backbone for Workday's transaction processing, reporting, and security, replacing the AFRS chart of accounts.
Full-time equivalent		As a unit of measure of state employees: refers to the equivalent of one person working full-time for one year (approximately 2,088 hours of paid staff time). Two persons working half-time also count as one FTE. As a unit of measure of students in K-12 or higher education facilities: refers to the equivalent of one student attending class full-time for one school year (based on fixed hours of attendance, depending on grade level).
Function		The major functional areas by which agencies are grouped according to general purpose: education, natural resources, human services, governmental operations and transportation.
Fund		For state purposes, a fund is referred to as an account. Refer to Account. Refer to Workday Term Worktag: Fund.
Fund balance		The excess of the assets of an account over its liabilities and reserves. For governmental funds, fund balance represents the difference between fund assets (beginning balance and estimated revenues for the period) and fund liabilities (including reserves and appropriations for the period).
Fund type		One of 11 classifications into which all individual accounts can be categorized. Governmental fund types include the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. Proprietary fund types include enterprise funds and internal service funds. Fiduciary fund types include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds and agency funds. See also: Generally Accepted Accounting Principles
General fund		A fund established to account for all financial resources and transactions except those required by law to be accounted for in specific dedicated accounts.
General obligation bonds		Statewide bond issues whose repayment is guaranteed by the full faith, credit, and taxing power of the state and that are subject to the state's debt limit. General obligations bonds are the traditional form of government debt financing for major construction projects.
Generally Accepted Accounting Principles (GAAP)		Uniform minimum standards for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application but also detailed practices and procedures.
Governmental funds		A fund classification used to account for most typical governmental functions. The acquisition, use, and balance of the state's resources and related current liabilities, unless required to be accounted for in proprietary funds or fiduciary funds, are accounted for in this classification of funds. There are five types of governmental funds: General Fund, Special Revenue funds, Capital Projects funds, Debt Service funds and Permanent funds.
Grant		Awards of financial assistance, including cooperative agreements, in the form of money or property in lieu of money to an eligible grantee. Capital grants are restricted for the acquisition, constructions, or renovation of capital assets associated with a specific program. Operating grants support all or a portion of current operating expenses within a certain program.
Hierarchies		Hierarchies are organizational structures that show relationships between different elements in the FDM. Hierarchies reflect each code’s relative place in that worktag structure. For ledger accounts, these hierarchies are referred to as summaries.
Independent Contingent Worker	Financial	An independent contingent worker (ICW) not represented by a supplier, and accounted for as a 1099 supplier. You issue purchase orders to, create receipts for, and pay ICWs just as you do suppliers.
Indirect cost		Costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.
Information Technology (IT)		All electronic technology systems, products and services. Equipment, software, services, and products used in processing information, office automation, and telecommunications (voice, data and/or video).
Internal service fund		A fund type used to report activities that provide goods or services to other funds, departments, or agencies of the state on a cost reimbursement basis. Internal service funds are used where the state is the predominate participant in the activity.
Intersection Security Group	Cross Application	An intersection security group is one whose members are other security groups. Workers associated with all included security groups are granted access through an intersection security group.
Job-Based Security Group	Cross Application	A job-based security group includes one or more job-related attributes or objects including job profile, job family, job category, management level, or exempt/non-exempt status.
Ledger account		Asset, liability, equity, revenue and expense accounts. Balance sheet accounts are entered directly on transactions and revenue and expense accounts default from the Spend/Revenue Categories of the Pay Component.
Legacy Data Extracts		The support provided by the Data Conversion Team in cleansing, extracting, and transforming data from legacy systems for submission and consolidation into Workday.
Legacy System Remediation (LSR)		The collaborative effort to update current systems designed for AFRS, enabling them to seamlessly integrate with the future OneWA financials.
Local fund/accounts		Accounts under the control of an agency with cash on deposit in a local bank account and requiring the signature of agency officials on a check for disbursement. Some local funds are on deposit with the State Treasurer as a matter of convenience or statutory requirement.
Location Membership Security Group	Cross Application	A location membership security group is one whose members are any workers assigned to that location.
Modified accrual basis		The basis of accounting under which expenditures, whether paid or unpaid, are formally recognized when the liability is incurred against the account, but revenues are recognized only when they become both measurable and available to finance expenditures of the current accounting period. All governmental funds use the modified accrual basis of accounting.
Nonappropriated funds		Moneys that can be expended without legislative appropriation. Only funds in accounts specifically established in state law as being exempt from appropriation fall into this category. Nonappropriated accounts can be either budgeted (and subject to OFM allotment approval) or nonbudgeted.
Nonbudgeted funds		Funds that are not subject to either the appropriation or the allotment process.
Object of expenditure		A common grouping of expenditures made on the basis of homogenous activity, goods or services purchased, or type of resource to be used. Applies to the character of the article purchased or service obtained (rather than the purpose).
Open Item	Financial	Supplier and customer invoices that have an amount owing or due. For expense reports, a line item to be paid or reconciled.
Operating budget		A biennial plan for the revenues and expenditures necessary to support the administrative and service functions of state government.

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