Glossary

Balance Sheet

A financial statement listing the assets, liabilities, and college equity as of a specific date.

Bank Reconciliation

The analysis that details the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger.

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.

Disposal of Equipment

Equipment disposal refers to both physically removing properties from a department and to the removing of the item from a department's active inventory, relieving the department of accountability for reporting/tracking.  Federal or agency-owned property cannot be disposed, cannibalized, transferred or removed without prior written approval from the funding agency or private entity.

Fiscal Year

The annual accounting period adopted by the college for financial reporting.

Fixed Asset

Physical items (tangible) or rights (intangible) that are owned by the college, have a useful life of two years or more and have a cost threshold of $5,000 or greater.

Journal Entry

The form of recording a transaction into banner (financial system).

Petty Cash

A special cash fund used to make immediate relatively small purchase of authorized items.  Petty cash funds may not be established to circumvent the college's purchasing guidelines.

Physical Inventory

The detailed listing of fixed assets on hand.

Salvage Value of equipment

Property that, because of its worn, damaged, deteriorated, or incomplete condition or specialized nature, has no reasonable prospect of sale or use as serviceable property without major repairs, but has some value in excess of its scrap value.

Threshold of capitalized assets

This is the amount the college has determined in which assets will be capitalized.  The standard capitalization threshold for the college has been established at $5,000 and greater.  The only exception is land.  The capitalization threshold for land is $0. 

Trade-in allowance

The amount a seller grants a buyer for a fixed asset that is traded in for a similar asset.  The college allows this for most vehicles and gators.

Voucher

A document that serves as evidence of authority to pay cash.

Controller's Office
152 Maple Street
Marble Works, Suite 102
Middlebury College
Middlebury, VT 05753