Title 36, Chapter 81, Section 2
As used in this article, the term:
(1) "Budget" means a plan of financial operation embodying an
estimate of proposed expenditures during a budget period and the
proposed means of financing them.
(2) "Budget officer" means that local government official charged
with budget preparation and administration for the local
government. The official title of the local government budget
officer shall be as provided by local law, charter, ordinance, or
appropriate resolution of the governing authority.
(3) "Budget ordinance," "ordinance," or "resolution" means that
governmental action which appropriates revenues and fund balances
for specified purposes, functions, or activities for a budget
(4) "Budget period" means the period for which a budget is
proposed or a budget ordinance or resolution is adopted.
(5) "Capital projects fund" means a fund used to account for
financial resources to be used for the acquisition or construction
of major capital facilities other than those financed by resources
from proprietary type activities which are accounted for in
enterprise funds or those financed with funds held by the local
government in a trustee capacity.
(6) "Debt service fund" means a fund used to account for the
accumulation of resources for and the payment of general long-term
debt principal and interest.
(7) "Enterprise fund" means a fund used to account for operations
that are financed and operated in a manner similar to private
business enterprises where the intent of the governing authority
is that the costs of providing goods and services to the general
public on a continuing basis be financed or recovered primarily
through user charges or where the governing authority has decided
that periodic determination of revenues earned, expenses incurred,
or net income is appropriate for capital maintenance, public
policy, management control, accountability, or other purposes.
For purposes of this paragraph, the term "costs" means expenses,
(8) "Fiduciary fund" means those trust and agency funds used to
account for assets held by a local government in a trustee
capacity or as an agent for individuals, private organizations,
other governmental units, or other funds.
(9) "Fiscal year" means the period for which a budget is proposed
or a budget ordinance or resolution is adopted for the local
government's general fund, each special revenue fund, if any, and
each debt service fund, if any.
(10) "Fund" means a fiscal and accounting entity with a
self-balancing set of accounts recording cash and other financial
resources, together with all related liabilities and residual
equities or balances, and changes therein, which is segregated for
the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations,
restrictions, or limitations.
(11) "General fund" means the fund used to account for all
financial resources except those required to be accounted for in
(12) "Governing authority" means that official or group of
officials responsible for governance of the unit of local
(13) "Internal service fund" means a fund used to account for the
financing of goods or services provided by one department or
agency to other departments or agencies of the governmental unit
or to other governmental units on a cost-reimbursement basis.
(14) "Legal level of control" means the lowest level of budgetary
detail at which a local government's management or budget officer
may not reassign resources without approval of the governing
authority. The legal level of control shall be, at a minimum,
expenditures for each department for each fund for which a budget
is required. This does not preclude the governing authority of a
local government from establishing a legal level of control at a
more detailed level of budgetary control than the minimum required
legal level of control.
(15) "Special revenue fund" means a fund used to account for the
proceeds of specific revenue sources, other than those for major
capital projects or those held by the government in a trustee
capacity, that are legally restricted to expenditure for specified
(16) "Unit of local government," "unit," or "local government"
means a municipality, county, consolidated city-county government,
or other political subdivision of the state. Such terms do not
include any local school district or board of education. For
purposes of this paragraph, "county" includes any county officer
who is paid in whole or in part on a salary basis and over whom
the county governing authority exercises budgetary authority.