An account that records a council's day-to-day expenditure and income on such items as salaries and wages and other running costs of services.

Expenditure to be classified as capital for funding purposes when it does not result in it being carried on the balance sheet as property, plant and equipment.

A grant paid by government to every local authority to help to finance its expenditure generally and not specific services. It is based on the government's assessment of how much the council needs to spend in order to provide a standard level of service.

Loans where repayment is due to be made or repayment can be demanded, within one year from the date of advance.

This relates to borrowing and cash activities (including investment) of the council, and the effective management of any associated risks. Local authorities' treasury management activities are prescribed by statute. In England & Wales the source of such powers is the Local Government Act 2003, which simplified past complexities and gave further clarification. A local authority may borrow or invest for any purpose relevant to its functions, under any enactment (law) for the purpose of the prudent management of its financial affairs. The council also applies the CIPFA code of practice on treasury management in public services