Principles of Finance

Question 1

What are 5 responsibilities of a CO as listed in the Corps Accounting Guide?

Answer 1

1. Raising & Securing income for Corps Programming
2. Safeguard all income received
3. Spending of any money must be done in conformity and with an approved budget.
4. Accounting records must be up to date
5. Required reports to funding organizations and/or supervising headquarters should be submitted on a timely basis

Question 2

How do we release financial information to the public or an individual donar?

Answer 2

We Don’t

Question 3

When can we release financial information to the public or an individual donar?

Answer 3

Only If prior approval is obtained by DHQ.

Question 4

How long do we maintain bank statement records?

Answer 4

7 years

Question 5

How long do we maintain cancelled check records?

Answer 5

7 years

Question 6

How long do we maintain Payroll records?

Answer 6

They are permanent; but when in doubt follow the retention manual.

Question 7

What is the Accounting Equation

Answer 7

Assets (deposits) = Liability (expenses) + Fund Balance (What you are worth)

Question 8

What is Fund Accounting?

Answer 8

A fund designates a different set of books within a company.

Each Fund must have their own balance sheet and must balance within the fund.

Question 9

What is the difference between Cash and accrual accounting?

Answer 9

Cash = what you have now to spend
Accrual= expenses that are reported when incurred and income is recorded as it is earned.

Question 10

What is the 3 purposes of accounting?

Answer 10

1. Record
2. Report
3. Manage

Question 11

Who is responsible for Accounting?

Answer 11

The Corps. Commanding Officer

Question 12

What is the SA Fiscal Year?

Answer 12

Oct 1 - Sept 30

Question 13

How often do we issue cartidge receipts/ listings to our soldiers and attendees?

Answer 13

Annually (yearly)

Question 14

What are Board Designated Funds?

Answer 14

Programs that maintains their own funds i.e Womans Ministries, Troops, Mens Fellowship programs.

Question 15

Are Board designated Funds subject to support services?

Answer 15

For the most part Yes, with minimal acceptions

Question 16

What income is exempt from support services?

Answer 16

World Services- Self Denial
World Services- Women's Ministries
Appropriations/ DHQ EXEMPT
Gifts in Kind Exempt
Program Service Fees
War Cry sales

Question 17

What are the 5 types of donations?

Answer 17

1. Unrestricted
2. Restricted
3. Conduit Contributions
4. Quid Pro Quo
5. Gifts in Kind

Question 18

What are gifts in kind?

Answer 18

Material Donations, Non cash gifts

Question 19

What makes up world Services Income?

Answer 19

Harvest Festival

Self Denial

Question 20

What dollar amount are we mandated by the government to provide a receipt letter for a donation?

Answer 20

$250

Question 21

How many people should count income, especially cash?

Answer 21

2 - must not be related.

Question 22

How often do we make deposits?

Answer 22

Weekly

Daily During Kettles

Question 23

How do we take money out of our Corps bank account?

Answer 23

By check

Question 24

Can we use a statement to back up documentation?

Answer 24

No, it must be an invoice.

Question 25

Are Volunteers reimbursed fro meals and travel expenses?

Answer 25

YEs, as long as they have a receipt.

Question 26

Can we issue manual checks?

Answer 26

No

Question 27

What needs to be included on receipts for Gas purchases?

Answer 27

``` License Plate Number Initials Mileage Price per gallon How many gallons purchased ```

Question 28

Who issues checks to employees?

Answer 28

DHQ

Question 29

Who files quarterly and annual payroll reports to government agencies?

Answer 29

DHQ

Question 30

How much is remitted to DHQ/ Payroll Company?

Answer 30

Gross wage of employee + FICA

Question 31

How does an officer receive reimbursements for dry cleaning , child care expenses?

Answer 31

Submits receipts to DHQ, is reimbursed in bi weekly check.

Question 32

What is petty cash?

Answer 32

Cash that is kept on hand for miscellaneous small expenses.

Question 33

Who are petty cash reimbursment checks written to?

Answer 33

The Petty cash custodian.

Question 34

What are bank reconciliations?

Answer 34

Reconciling your bank statement with your check book.

Question 35

How often do we reconcile bank statements?

Answer 35

Monthly

Question 36

What is power of attorney?

Answer 36

The legal document that states who is authorized to act on behalf of the SA locally (Corps)

Question 37

Who authorizes Accounts?

Answer 37

DHQ

Question 38

How many signatures are needed for bank transactions?

Answer 38

2