Quiz 5

Question 1

What is Budgeting?

Answer 1

The allocation of finite resources to the
prioritized needs of an organization.

Question 2

Budgeting involves different stake holders including?

Answer 2

Administrators
School Boards
School Employees
Community Members

Question 3

Budgeting can be seen as what?

Answer 3

as a tool for the control and
evaluation of sources and the use of resources.

Question 4

School budgeting has become increasingly more input
focused as a result of greater calls for accountability. True/False

Answer 4

False, (Outcome focused)!

Question 5

According to Hartman, the key steps of the budgeting
process include

Answer 5

Establishing Priorities
Allocating Resources
Engaging Stakeholders
Conducting Elections where required

Question 6

A budget is a financial plan that involves at least 3
elements. True/False

Answer 6

False, 4!

Question 7

What are the 4 elements of a budget?

Answer 7

Planning
Receiving Funds
Spending Funds
Evaluating Results

Question 8

The school district budget has been conceptualized as an
equilateral triangle. True/False

Answer 8

True, the budgets 3 dimensions!

Question 9

The Budgets 3 Dimensions

Answer 9

The Base is The Educational Program

One side Represents the Cost of the Program

The other side Represents the Revenue Plan of the Program

Question 10

What is Systems Analysis?

Answer 10

A way of looking at the functions involved in
administration; a practical philosophy on how to assist a decision
make with complex problems, such as budgeting.

Question 11

What are the elements of systems analysis?

Answer 11

Formulation
Search
Explanation
Interpretation
Verification
and Structuring of the problem, design of the analysis and conceptual
framework.

Question 12

Districts and schools have utilized a variety of budgetary
approaches over the last 30 years; five types of models
continue to be used. True/False

Answer 12

True

Question 13

Line Item/Traditional Budgeting

Answer 13

Based on historical expenses
and revenue data.

Question 14

Performance Budgeting

Answer 14

Centered on desired outcomes or
accomplishments.

Question 15

Program and Planning Budgeting

Answer 15

Bases expenditures primarily
on programs.

Question 16

Zero-Based Budgeting

Answer 16

All programs must be justified.

Question 17

Site-Based Budgeting

Answer 17

Budget development through joint efforts
of stakeholders.

Question 18

The three parts of a district budget document are?

Answer 18

The organizational, financial, and informational sections.

Question 19

Budgeting is done annually and is a process of continuous
planning. True/False

Answer 19

True

Question 20

The budget calendar should include elements to be considered
on a monthly basis throughout the fiscal year; it should include what?

Answer 20

fixed or suggested dates and should be predetermined for the
completion of certain actions.

Question 21

The budget process overlaps from year to year and includes what?

Answer 21

operation of the current budget, finalizing the previous year’s
budget and planning for the following year.

Question 22

Multiple steps are involved in estimating the district budget
for the upcoming year, including?

Answer 22

Projections of Student Enrollment
Projections of Personal Requirements
Estimating Expenditures
Estimating revenues
Balancing Budget

Question 23

What is a Budget Hearing?

Answer 23

Budget hearings offer citizens and taxpayers an opportunity
to become involved in the decision making process and
provide a forum for holding administrators accountable for
their actions

Question 24

Most states have laws that require a formal hearing before
adoption of the annual school district budget.
True/False

Answer 24

True

Question 25

School Level Budgeting

Answer 25

1. Most schools have a district account and a school account, both of which have unique guidelines. 2. Monies from the district account are used to buy equipment and supplies. 3. The school account includes funds from students, faculty and patrons collected by the school in various forms and may also include grants. 4. Student activity funds belong to the students and are used to support student organizations and clubs. 5. District activity funds belong to the district and are used to support district programs.

Question 26

The purpose of accounting is planning and stewardship of public funds. True/False

Answer 26

True

Question 27

There are several purposes of the accounting system that assist the school district, including?

Answer 27

* Creating a method to accumulate, categorize, report and control the fiscal transactions of the district. * Creating a mechanism to assist districts in estimating how well they are achieving state goals. * Providing a method to report to legislatures how districts are meeting responsibilities. * Providing historical data needed for budget preparation. * Safeguarding the proper handling of tax dollars.

Question 28

There are several principles that may be applied to form the basis of an adequate and effective accounting system in schools:

Answer 28

Accuracy Completeness and Timeliness Simplicity Uniformity Other recommended characteristics include understandability, reliability, relevance, consistency and comparability.

Question 29

The Financial Accounting for Local and State Systems handbook has long been a financial reporting guide with various editions spanning more than 30 years. True/False

Answer 29

False, 60! The handbook explains an account code structure designed to serve as an efficient coding facility and basic management tool and to establish a common language for reporting the financial activities of a school district.

Question 30

The Government Accounting Standards Board is what?

Answer 30

is an independent organization that establishes accounting and financial reporting standards for state and local governments; it issues policy statements to governmental entities that sometimes affect education accounting practices.

Question 31

Many school districts are required to file a Comprehensive Annual Financial Report (CAFR), which generally contains financial and non-financial information. True/False

Answer 31

True

Question 32

CAFRs must have at least three sections:

Answer 32

Introductory Financial Statistical A fourth section, Compliance and Controls, is also becoming common.

Question 33

Two government wide statements, statement of net assets and statement of activities, are also included in CAFRs. True/False

Answer 33

True

Question 34

CAFRs contain financial statements for three types of funds:

Answer 34

government funds, proprietary funds and fiduciary funds.

Question 35

Notes are required and offer narrative explanations to supplement numeric presentations. True/False

Answer 35

True

Question 36

School districts may be required by their governments to file other reports as well. True/False

Answer 36

True

Question 37

A fund is?

Answer 37

a separate accounting and fiscal entity.

Question 38

Funds may be characterized as restricted (can be legally used only for certain purposes) or unrestricted (can be carried forward for reallocation in a future fiscal year). True/False

Answer 38

True

Question 39

Types of funds

Answer 39

* Government funds * Proprietary funds * Fiduciary funds

Question 40

An encumbrance represents?

Answer 40

a commitment related to unperformed contracts for goods and services, such as the signing of a contract or issuance of a purchase order.

Question 41

Encumbrance accounting serves the purpose of keeping the administrator informed about expenditure commitments. True/False

Answer 41

True

Question 42

Encumbrance accounting is so important that some states require it of all school districts, while others allow districts to submit their yearly reports with or without encumbrances. True/False

Answer 42

True

Question 43

Cost accounting?

Answer 43

helps answer questions related to various types of costs; it has two primary values

Question 44

Two Primary Values of Cost Accounting

Answer 44

* It provides information for in-school choices and decisions in the expenditure of funds, and * Costs for the same services can be compared with those of other schools.

Question 45

Accrual accounting is?

Answer 45

the superior method of accounting for the economic resources of the proprietary and fiduciary funds in a local education agency.

Question 46

The essential elements of accrual accounting include

Answer 46

* Accrual of expenditures when occurred and amortized, * Deferral of revenues until they are earned and * Capitalization of long-term expenditures and the subsequent depreciation of those costs.

Question 47

The school accounting function begins with the receipt of funds from the agency that allocates funds to the district, as well as from local collections. True/False

Answer 47

True

Question 48

General authorization for the expenditure of funds comes from the budget and minutes of the board of education meetings. True/False

Answer 48

True

Question 49

Some boards of education authorize charges against the district by sole action of the superintendent with accountability to the board, while others require preapproval or ratification at a board meeting of all expenditures or encumbrances above a certain amount. True/False

Answer 49

True

Question 50

An audit is?

Answer 50

a systematic process or procedure for verifying the financial operations of a school district to determine whether property or funds have been or are being used in a legal and efficient way.

Question 51

Timeliness is essential in auditing. True/False

Answer 51

True

Question 52

The purposes of audits are?

Answer 52

* To satisfy state and local district requirements, * To protect school funds and * To help establish confidence in the operation of the schools.

Question 53

The three most common types of school audits are?

Answer 53

* Internal audits, also called continuous audits, * State audits and * External audits.