Accrual Method Of Accounting
In the context of a financial audit, audit findings represent weaknesses or deficiencies in internal controls, or instances of noncompliance with applicable laws and regulations, that are presented in an audit report.

Accounts Payable
Amounts that a business owes

Net Income
Gross income less expenses; it represents a business's profit for a given year.

Audit
A systematic review or examination of the assertions or actions of a third party to evaluate conformance to some norm or benchmark.

Cash Method Of Accounting
Accounts for income and expenses when actually received or paid.

Accounts Receivable
Amounts owed to a business that the business expects to receive.

Statement
A formal written summary of outstanding invoices.

Blue Book
This is the term commonly used to describe the Government Finance Officers Association publication Governmental Accounting, Auditing and Financial Reporting. Initially, the blue book was the authoritative source for GAAP for state and local governments.

Base Adjustment
Adjustments made to the initial base level budget to reflect total base level funding available to the agency. The list of acceptable base level technical and policy adjustments are included in the biennial budget instructions. Adjustments are generally made on a technical or policy basis. Examples of technical adjustments are one-time appropriations and program sunsets. Examples of policy adjustments are salary increases and space rental changes.

Ledger
A physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable.