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Glossary

 

This glossary is designed to assist you in understanding the terms referenced in the Controlling Board application. In addition, the OAKS inquiry screens are referenced when applicable.

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Adjusted Appropriation

The amount of the original appropriation minus any executive order reductions plus net transfers. For prior budget fiscal years, the adjusted appropriation always equals the sum of disbursements and outstanding encumbrances. (QAPPR02)

Appropriation

An authorization granted by the Ohio General Assembly to make budgetary expenditures and to incur obligations for specific purposes. An appropriation limits the amount that may be spent for a given purpose in a given period of time. No appropriation may be made for a period longer than two years.

Agency Administration of Capital Expense (Local Administration)

The administration and bidding authority given to state agencies for a construction related project utilizing capital appropriations. This authority may only be granted by the Ohio Department of Administrative Services, Office of the State Architect, or as prescribed by law.

Amendment

An amendment is a written change to a contract.

Appropriation Line Item (ALI)

The seven-character code that identifies the specific purpose of appropriations as authorized by law and accounted for within its fund. The ALI name indicates the specific purpose of amounts appropriated or expended. ALI codes are used in the accounting system for budgetary reporting and control.

Available Balance

In reference to an ALI, this is the amount available for spending from the ALI. Calculated as original appropriation plus net transfers, minus reductions, spending, un-allotted and unassigned amounts. (QAPPR02)

Biennium

A two-year period that begins July 1 and ends twenty-four months later on June 30.

Budget

A plan of financial operation embodying an estimate of proposed expenditures and obligations for a given period and the proposed means of financing them.

Buy America

The Federal Buy America Act requires that only domestic end products be acquired for public use, except articles, materials and supplies; for which the agency head determines that domestic preference would be inconsistence with the public interest; that are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities, of a satisfactory quality (see Federal Code 25.102(a) and 25.108).

Buy Ohio

Preference is given to companies whose product(s) being offered are raised, grown, produced, mined or manufactured in Ohio or who have significant economic presence within the state of Ohio.

"Significant Ohio economic presence" means business organizations that:

  1. Have sales offices, divisions, sales outlets or manufacturing facilities in Ohio or which facilities demonstrate a significant capital investment in Ohio;
  2. Pay required taxes to the state of Ohio; and
  3. Are registered and licensed to do business in the state of Ohio with the office of the secretary of state.

For additional information, refer to DAS State Purchasing or the State Procurement Handbook, Appendix 5 Terms and Conditions, Policies and Procedures, Miscellaneous, Page 6 Rev. 05/01/02.

Capital Appropriation Act (Budget Bill)

Capital plan approved by the Ohio General Assembly for all state-financed capital improvements projects.

Cash

Cash is money on deposit in a financial institution under the Treasurer of State's administration. Cash balance is affected by disbursements (decreased) and revenue (increased). Cash is accounted for at the fund level in OAKS.

Contract (New)

A contract is a legally binding arrangement or agreement between two parties that involves the sale and purchase of products, supplies and/or services. An agency's initial contract with a supplier or an agency's subsequent contract with a supplier if the subsequent contract is not based upon the exercise of a renewal option in the prior contract.

Contract (Amendment)

An addition, deletion or revision of a current contract.

Contract (Renewal)

The exercise of an option to enter into a subsequent contract with a supplier in accordance with a renewal provision specified in a preceding contract.

Controlling Board

The Controlling Board is comprised of the Director of the Office of Budget and Management, or his or her designee, and six members of the Ohio General Assembly. The board provides legislative oversight over certain capital and operating expenditures by state agencies and has approval authority over various other state fiscal and purchasing activities.

Controlling Board Meeting Agenda

The agenda summarizes each request submitted by the Controlling Board President to the Controlling Board for action at a particular Controlling Board meeting.

Controlling Board Meetings

The Controlling Board meets at least once a month. The Board usually meets every other Monday afternoon.

Controlling Board Number

A six-character code assigned by the agency that identifies a particular request. The first three characters are the agency's OAKS Code and the last three are numeric and unique to that agency for the fiscal biennium. Once a request is approved, this number serves as the legal authority for the expenditure of appropriation consistent with the approval.

Controlling Board President

The Director of the Office of Budget and Management or his or her designee serves as the President of the Controlling Board.

Controlling Board Executive Secretary

The Director of the Office of Budget and Management designates an employee of OBM to serve as Executive Secretary of the Controlling Board. The Executive Secretary assists the President of the Controlling Board and makes and keeps a record of each request received by the Board and the Board's action on the request.

Cumulative Purchase (Controlling Board) Threshold

This threshold is the dollar amount per supplier that establishes when an agency must come to the Controlling Board for a waiver of competitive selection for the purchase of supplies or services.

  1. The cumulative threshold for purchases is $50,000 for supplies and services ($75,000 for institutional agencies) and $75,000 and for real estate leases.
  2. To determine if a state agency has reached the cumulative threshold for purchases, the amount of the purchase proposed to be made by the state agency shall be combined with both the amount of all the disbursements by the agency to the particular supplier or contractor during the fiscal year and the amount of all outstanding encumbrances of the agency for the supplier or contractor.
  3. Real estate leases, purchases specified in R.C. Section 127.16(E), and purchases for which Controlling Board has granted a waiver of competitive selection shall not be considered.

Note: Amounts per exempted object codes must be excluded from the total amount to determine if non-exempt total exceeds agency thresholds. If non-exempt total is less than agency thresholds, a Controlling Board request is not required.

Disbursement

A payment made for any purpose.

Encumbrance

A OAKS spending document that legally reserves appropriation from an agency's available appropriation balance which represents purchase orders and contracts entered into by state agencies and institutions of higher education. This document may either be a State of Ohio Purchase Order or State of Ohio Contract Encumbrance.

Equipment

Durable goods such as computers, desks, chairs or cars.

Expenditures

Payments against appropriations that reduce the cash balance after legal requirements have been met. A fiscal year's expenditures are payments actually made in that fiscal year, regardless of the state fiscal year in which the appropriations were reserved or encumbered for such payments.

Fiscal Year (FY)

A twelve-month period of time used for fiscal planning purposes. The state fiscal year (usually FY, but sometimes abbreviated as SFY) begins on the first day of July and ends at the close of the thirtieth day of June of the succeeding calendar year.

Fund

A separate fiscal and accounting entity with a self-balancing set of accounts. A fund created in the state treasury usually has one or more appropriation line items facilitating expenditures from the fund. If the fund has only one appropriation line item, the ALI name often is the same as the fund name.

(Budget) Fund Group

This category is used to group similar funds for Ohio's budgetary reporting purposes. Ohio's funds are categorized according to their revenue sources and purposes for which they are used. The Budget Fund Group can be located within the appropriation act or through the OAKS Master Table- FUND.

Legal Authority

The authorization for the expenditure established by a House Bill, Senate Bill, Controlling Board action, or Governor's Executive Order. (QAPPR04)

Legislative Service Commission (LSC)

The Ohio Legislative Service Commission (LSC) was created by statute in 1953 to provide technical, research, and fiscal services to members of the Ohio General Assembly.

The Ohio Legislative Service Commission's fourteen members consist of the Speaker of the House of Representatives and six members of the House appointed by the Speaker; the President of the Senate and six members of the Senate appointed by the President. Minority party participation in the Commission is insured through a requirement that not more than four of the six members appointed by the Speaker of the House or the President of the Senate be of the same political party. The Commission selects from its membership a Chairman and a Vice-Chairman who serve for two years. The two positions customarily rotate between the houses. Traditionally, the Senate President or the Speaker of the House serves as Chairman.

Minority Business Enterprise (MBE)

A company that meets criteria established by Ohio Revised Code and certified by the Equal Opportunity Center within the Ohio Department of Administrative Services as a minority business enterprise.

OAKS (Ohio Administrative Knowledge System)

An acronym for the state Ohio Administrative Knowledge System used by State of Ohio employees to manage administrative functions.

Ohio Office of Budget & Management (OBM)

OBM provides fiscal accounting and budgeting services to state government which include coordination, development and monitoring of agency operating and capital budgets and the review, processing and reporting of financial transactions made by state agencies.

OBM Budget Analyst

OBM Budget Analysts assist the Governor in developing and implementing the state operating and capital budgets for submission to the Ohio General Assembly. In addition, the analysts provide economic and fiscal forecasting and monitor the state's financial resources and obligations.

Object

A three-character code which identifies an object of expense as defined by State Accounting.

Object Category

One-character code used to identify a group of object classes.

Ohio Revised Code (ORC)

All statutes of permanent and general nature of the state as revised and consolidated into general provisions, titles, chapters, and sections.

Operating Appropriation Act (Budget Bill)

An operating plan approved by the Ohio General Assembly for all state-financed operating activities or programs.

Original Appropriation

The amount appropriated in the original appropriations act. (QAPPR02)

Purchase

The act of buying, renting, leasing, lease purchasing, or otherwise acquiring supplies or personal services.

Release and Permit, DAS

A Release and Permit is issued by DAS to state agencies when purchasing limits exceed the agency's direct purchase authority and when it has been determined that the product or service cannot be procured by DAS through the competitive selection process.

For purchases above DAS' Direct Purchase Authority, an approved Release & Permit is issued by DAS when DAS has determined that procurement of a supply or service by DAS would not be advantageous to the state. The agency may proceed in making the purchase using procurement guidelines provided by DAS.

Release of Capital Appropriation

Authorization which an agency must obtain from the Controlling Board before the agency may expend a capital appropriation. Under certain provisions specified in law, the Director of OBM may authorize the release of capital appropriations.

Request For Proposal (RFP)

The administration and bidding authority given to state agencies for a construction related project utilizing capital appropriations. This authority may only be granted by the Ohio Department of Administrative Services, Office of the State Architect, or as prescribed by law.

Service

Includes the furnishing of labor, time or effort by a person(s) which may be technical, non-technical, consulting, advisory, professional or non-professional in nature.

Supply

All property, including, but not limited to, equipment, insurance, materials, with the exception of land.

Transfer of Appropriation

An adjustment of appropriation between two or more appropriation line items that involve the reduction of appropriation in one line item and the increase of appropriation in another line item(s).

Unassigned Amount

Dollar amounts that are appropriated but not allocated to a SAC with a Fiscal Year Allotment Plan. For capital purposes these are amounts not previously released for use. (QAPPR02)

supplier Identification Number

The ten-character identification under which the supplier is identified in the OAKS. This may be either an employer identification number (EIN) or a social security number (SSN). (QVNDR01)

Waiver of Competitive Selection

Under certain circumstances, the Controlling Board is authorized to waive an agency's obligation to follow competitive selection for the purchase of supplies or services.