Economic Fiscal Year - A twelve month period between July 1st of one year and June 30th of the next year.

Budget - Comprehensive plan expressed in financial terms by which an operational plan is put into effect during a period of time given with the objective of attending it's clients needs.

Consolidated Government Budget - The group of liabilities and resources of the Government of Puerto Rico which include: all of ordinary operation and permanent improvements expenditures charged to the General Fund, Grants from the United States Government, Public Improvements Fund, Special State Funds, and the net budget from public corporations, including contributions and compensations received from the Central Government. Budgets from municipalities are excluded in this definition.

Central Government Consolidated Budget-The General Fund appropriations included in the General Budget Joint Resolution for ordinary operating expenses, the Special appropriations from the General Fund for operating expenses and capital improvements, the Public Improvements Fund and the Special State and Federal Funds for operating expenses and capital improvements, self generated operational Income, and Other Sources.

Consolidated Budget from Public Corporations - Operation or service expenditures and liabilities, and the public corporations investments in permanent improvements charged to the General Budget Joint Resolution and General Fund Special Appropriations, to their Operational Income, Loans and Bond Issues, Grants from the United States Government, and other sources.

Public Policy - The basic position or curse of action selected by the government in order to direct decisions concerning a need or situation of public interest. The main sources of public policy expression are the Constitution, the laws, and official government proclamations.

Public policies define the government's order of priority and the perimeter of action in the treatment of problems or needs, according to its nature and urgency.

Government Program - Strategic work plan for four years of the elected Governor to establish the public policies that will direct the Government's actions.

Programmed Commitments - Governor's priorities for each fiscal year, as the Government's Program is unveiled.

Mission -Corresponds to the duty, or basic or fundamental responsibility of an entity. It refers to it's reason for being and what makes it different from others. In general purpose, main objective, policy and institutional identity. It presents the course of action selected by the government to direct decisions in regard to a need or problem of public interest.

Vision-The desired future. An image or broad and positive affirmation of what to achieve, of what we want to transform our organization.

Legal Base - Refers to the Law, Executive Order or Resolutions that stipulates the creation of an organization, program or resources appropriations.

Organizational Structure - The system by which the directive, administrative and operational duties, authority and normative responsibilities of the governmental entities are distributed, integrated and coordinated. In the budget we present the organization work units in alphabetical order.

V. PROGRAM AREAS AND SECTORS

Program Area - The group of wide governmental action goals that identifies each one of the eight principal parts in which budget allocation are classified in order to execute governmental duties. The program areas are: Legislative Assembly, Government Management, Social Development, People and Property Protection and Safety, Economic Development, Technical and Economic Assistance to Municipalities, Debt Service to the Debt and, General Court of Justice. These areas are divided into program sectors.

Program Sector - Group of specific objectives within a program area. In each program sector a group of programs with similar purposes is gathered. An agency may have programs that may correspond to different program sectors and areas.

Program Structure - Refers to the group of programs, sub-programs, and activities that an agency performs in order to reach those planned goals and objectives.

Management for Results - An objective and systematic evaluation instrument with the purpose of providing evidence on the obtained accomplishments over the proposals executed by the government, organization, program and activity in such a manner that it can provide information in the decision making and increase confidence and credibility from the citizens towards the government.

Work Plan - It is the organized response of an agency in order to take care of the needs that fall within its mission, within an established period of time. This response includes establishing goals and objectives, the selection and fulfillment of service practices and the use of resources.

Program - It is a group of projects geared towards one or various common goals. Single agency program, exclusive of the own agency. Multi agency program is directed at achieving a coordinated action that involves the participation of several agencies in order to accomplish the goals or purposes it pursues through it’s development.

Program Description - A narrative expression that presents the services it provides. The description should answer what does it do?, and the clientele it serves or benefits from.

Purpose of the Program - It depicts what the fulfillment of the mission is trying to accomplish. It establishes the curse of action and must indicate why and what for the program exists, as well as the wanted result.

Clients Served - The potential users or beneficiaries that are obliged under law to attend the program.

Goal - It is the general result or the end that wants to be reached in a period of time, the attention paid to a need that gives foundation to a project and falls within the mission of the agency. It includes what is being tried to reach and the result or condition to be accomplished.

Activity - The group of tasks or actions performed as part of a program in order to reach the objective or final product of a program. It has as a result the rendering of a service or product. Generally, the activities are done at an intermediate level of the organizational structure, as could be a session.

Objective - It is the most specific result that must be reached in a shorter period in order to reach the goal. It is quantitative or qualified, concise and comprehensive, viable and realistic, acceptable and reached within a fiscal year.

Performance Measures - They are quantitative or qualitative measures utilized to analyze the progress attained in terms of the planned results. They are instruments by which the inputs that are part of the production of an asset or service are measured. They also measure the efficiency and effectiveness in terms of quality, satisfaction and service.

Input Indicators - They are a measure of the resources utilized during a year to offer the services of a program. They give an idea of the magnitude of the investment and they may be expressed in monetary or non monetary terms. They represent all of the elements that are involved in the operation process of a program, such as: personal, resources, and support services invested in the program.

Production Indicators - They reflect the work performed with the allocated resources. They measure the amount of services provided. Then are generally expressed in terms of human/units at end of activity.

Efficiency Indicators (Cost by Unit) - They establish the relation between the inputs and the production, they measure the cost per produced unit or service. They provide data about the return of the investment and the relative efficiency of the services.

Effectiveness Indicators - They measure the result attained with the services offered. They depict the accomplishment of the objectives or results of a program or activity. They point if the production reached the quality standards, service and clients satisfaction is the expected

Projects - It is an autonomous group of resources and institutional measures designed to attain one or several goals and objectives in a determined period of time.

General Fund - It is the fund where all moneys collected by the Department of the Treasury are deposited, from which later the Legislative Assembly gives out the appropriations to pay for the different service programs and public investments for each fiscal year. These resources originate from tax collections, essentially over property, income, estate, donations, alcoholic beverages, and from consumer goods like cigarettes, petroleum products, motor vehicles and accessories, electronic or gas products, and others. Also counted as revenue sources for the Government are collections from vehicle licenses, and other licenses; the General Budget remainders; transfers from the Investment Interest Fund; duties & fees, fines, and confiscation; revenues proceeding from the Lottery, Customs duties, and shipping fees.

Public Improvements Fund - It is composed of revenues collected from the sale of bond issues authorized by the Legislative Assembly by virtue of the laws in effect. These resources are utilized to finance the permanent improvements program and can not be used to pay for agencies' operating expenses.

Special State Funds - Funds where determined resources are deposited for specific purposes in accordance with the laws in effect. They proceed from tax collections, duties and licenses, services fees, contributions from people and donations from private entities, and other collections from some Government entities. The expenses charged to these special funds do not require annual legislative action, due to the fact that the disbursements are authorized by previously approved legislation, which rules until the Legislative Assembly may take a new action towards its effect.

Special Federal Funds – Grants from the United States Government for education, health, social welfare, employment, permanent improvements, and other programs. These resources do not need any legislative action, since its use has already been determined by federal legislation.

Rainy Fund – It is capitalized annually by an amount no less than one percent (1.0) of the total of the net revenues of the previous fiscal year. It also orders that beginning fiscal year 1999-2000, all of the revenues that do not constitute net income to the General Budget's Joint Resolution that are destined by law to a specific purpose, be deposited into the Budget Fund. The maximum balance of this Fund will not exceed six (6) percent of the Funds approved in the Budget Joint Resolution of the year in which it was assigned. It is used to cover approved appropriations for any economic year if the available revenues for that year are not sufficient to cover them, in order to honor the payment of the public debt. It can also be used to take care of emergency situations. This Fund was created by virtue of Law No. 147 of June 18, 1980, amended by Law No. 89 of August 18, 1994 and Law No. 93 of August 20, 1997.

Emergency Fund - It joins resources to take care of public needs caused by natural disasters, such as: hurricanes, earthquakes, flooding, draughts, and others. It is capitalized from annual assignments of an amount no less than the one percent (1.0) of the General Budget Joint Resolution total of the previous fiscal year. The balance of such fund will not exceed five (5) percent of the Funds assigned during that year. This Fund was created by virtue of Law No. 91 of June 21, 1966, amended by Law 89 of August 18, 1994 and Law No. 93 of August 20, 1997.

Public Debt Redemption Fund - In this fund the revenues generated by non exempt property tax are deposited, equivalent to a 1.03 percent and the contributions form the General Fund for the payment of the principal and interest of the long term debt of the Central Government.

Revolving Funds and/or of Industrial Capital - Specially created to register all revenues and expenses from transportation services, printing and other expenses offered by the agencies themselves, as those attached to the General Services Administration, offered to the government agencies. These nurture from the charges for services rendered to the agencies.

Government Companies Funds - They are devoted to paying for the Central Government's public companies or commercial activities operations for the benefit of the public and are nurtured by resources from the proceeds charged for the services they provide to the public and to the government, as well as contributions from the General Fund and Other Funds.

Social Security Fund - Resources from the collection of employers and employees' contributions for retirement, social security, compensations, unemployment and other similar ends.

Trust Funds - Resources under the Central Government's custody for the benefit of other agencies or individuals which do not constitute part of the governmental budget.

Special Appropriations - Resources from the General Fund authorized by the Legislative Assembly for the development of programs or activities of special character, permanent or temporary.

Fiscal Appropriation - Amount of resources from the General Fund authorized by the Legislative Assembly to be used within a determined period of a fiscal year.

Non-Fiscal Appropriation - Authorized resources by the Legislative Assembly for a specific purpose. This allocation remains active until its purpose is fulfilled, independently from the fiscal year of approval.

Auto-Renewable Appropriation - Resources from the General Fund authorized by the Legislative Assembly for specific means and they are renewed annually, without any need of new enacting legislation.

Non-Departmental Appropriation - Resources from the General Fund deposited under the custody of an agency for the use of other entities.

Appropriation under the Custody of the Office of Management and Budget - Deposited resources under the custody of the Office of Management and Budget for different purposes or uses, proceeding from the General Fund and/or the Public Improvements Fund for which a coveted control is kept, due to the nature and/or complexity of the proposed use (reimbursement costs for raises in the Federal Minimum Wage, salary raises, sector reorganizations and others).

Human Resources - Group of persons directed towards accomplishing a determined necessary job in order to fulfill the agency's mission.

Monetary Resources - Amount of money needed by each organization unit in order to perform their action program.

Liquid Reserves - Resources for the attention of unexpected situations and/or emergencies. They are composed of the following funds: budgetary, emergency, and contingency reserves.

Contingency Reserves - Resources under the custody of the Office of Management and Budget to promote productivity and provide for any unexpected resource insufficiency to cover the expenses of any fiscal year.

Community Services - Includes all programs which offer services to the community, in a direct or indirect way, such as: health, education, public safety, social security, among others. It includes the cost of offering of services as well as the administrative particulars of these.

Services to other Agencies - Programs directed at offering services to other agencies, so that they can fulfill their mission. They mostly involve government managerial duties.

Inter-Agency Services - Support services to agency internal programs such as, administration, data systems, planning, among others.

Debt Service - Total disbursements steered at payments towards the agencies’ public and managerial debts. The public debt is the amount of money owed at the time the bonds and general liability notes are issued backed by the good faith and credit of the Government of Puerto Rico, paid from the General Fund and the Special State Fund. The management debt is the amount of money owed by the administration of a public entity for services received as well as for loans where the good faith an credit of the Government of Puerto Rico is not involved, paid from allocations the General Fund. Public Corporation's debts are paid from their own income.

Mayor Expense Concepts - Classification with a similar purpose as the line items included in Order No. 49 of the Department of Treasury, as revised to July 1, 1998 with the implementation of the new PRIFAS accounting system. The following is a list of the mayor expense concepts which appear in the Budget Document:

Salaries, regular personnel

Salaries, transit personnel

Wages, irregular positions

Wages, regular positions or part time transit

Wages, over time, regular positions

Wages, over time, irregular positions

Fees and other compensations – independent contractors

Additional compensation to employees-Christmas bonus-regular employee

Additional compensation to employees-Christmas bonus-transit employee

Additional compensation to employees-Christmas bonus-irregular employee

Employee additional compensations

Per diem expense for over time work

Compensation employee accumulated sick leave

Additional compensation Civil services and Legal – Christmas Bonus - employee for Retirement System

Additional compensation employees – retroactive interest paid

Payment day care

Additional compensation employees – non classified

Employee Insurance – workers compensation (FSE)

Employee hospital and medical attention insurance

Disbursements for disability, employees' death

Employees pension

Pensions to employees heirs

Pension advances

Awards

Compensations laborers and employees – accidental and sickness (SSC)

Social Security Contribution – Federal

Medicare

Christmas Bonus

Retirement System

State Insurance Fund

Hospitalization and Care Insurance

Federal Social Security

Unemployment Insurance

Fringe Benefits

Overtime Compensation

Other compensations

Liquidation Payments

Incentives

Communication Services- non classified

Payment for debts incurred in previous years with the Telephone Authority - Debt

Service payments to the Electrical Power Authority - current expense

Payment for debts incurred in previous years with the Electrical Power Authority - Debt

Service payments to the Aqueduct and Sewers Authority - current expense

Payment for debts incurred in previous years with the Aqueduct and Sewers Authority - Debt

Service payments to the Public Buildings Authority - current expense

Payment for debts incurred in previous years with the Public Buildings Authority - Debt

Legal Services

Medical Services

Engineering and Architectural Services

Accounting Services

Professional and Consulting Services (OCAP)

Professional and consulting services non classified

Professional and consulting services- with withholdings

Private Services, institutional operation payments

Preservation and repair of buildings and other constructions and leased equipment

Other leases - facilities

Payment for services offered by the Transportation Area - current expenses

Payment for debts

Payment for printing and bookbinding services from the General Services Administration-current expenses

Payment for debts incurred in previous years with the General Services Administration - Debt

Payment for training services

Student transportation

Rent of other public entities

Payment debt

Preservation and repairs of buildings and structures

Advertisement

Publicity

Donations, subsidies, taxes and other compensations

Contributions to Public Companies and the UPR

Contribution to municipality in order to match Federal Funds

Disbursement for scholarships

State contribution to match Federal Funds

Transfer of operational funds to:

The Construction Fund

Renovation and Replacement Fund

Other Funds or Reserves

Legislators' meal allowance and Board members

Representation fees non-classified

Travel and Meal Allowances

Hospital patient compensation, confined and isolated – state institutions

Radiogram Services

Special Artistic Shows

Membership and subscriptions

Animal care

Land conservation and secondary improvements

Hospital Services

Miscellanous Services – not classified

Banking Services

Agricultural Effects

Seeds

Insecticieds

Extinction Material

Menial Tools

Other equipment parts

Office equipment

House equipment

Kitchen equipment

Educational and recreational equipment

Medical, dental, and lab equipment

Private advertisement and printing services

Public services

Printing of stamps

Miscellaneous services

Printing and replacement of Law Volumes

Expenses to attain evidence

Purchase of extinction material and clothes

Purchase of books and didactic material

Purchase of construction materials

Purchase of asphalt and priming materials

Labor Department travel expenses - Employment Security Bureau

Federal Government Assistance in case of emergency

Materials, Fuel, Supplies, and Parts

Drugs and Medications

Payment for debts incurred in previous years

Budgetary reserve

Lump Sum Appropriations

Claims