Financial Management & Budgeting Flashcards

A school district wants to evaluate whether its programs are achieving desired outcomes relative to their costs. Which analytical approach is most appropriate?

Answer: Cost-benefit analysis

Cost-benefit analysis compares the monetary value of program outcomes to their costs, helping decision-makers determine whether resources are producing sufficient results.

Which of the following describes the 'supplemental' requirement under Title I funding rules?

Answer: Federal funds must increase the total resources available beyond the state/local baseline

The supplement, not supplant rule requires that Title I funds add to—not replace—the educational services that would be provided using state and local funds.

What is the primary advantage of program-based budgeting over traditional line-item budgeting?

Answer: It links resource allocation directly to program goals and outcomes

Program-based budgeting organizes expenditures around programs and their objectives, making it easier to evaluate whether spending achieves educational goals.

A district administrator is reviewing invoices before payment. This practice is an example of which type of internal control?

Answer: Preventive control

Reviewing invoices before payment is a preventive control designed to stop errors or unauthorized transactions before they occur.

Which of the following is a characteristic of a fiscally stable school district?

Answer: Recurring revenues consistently exceeding recurring expenditures

Fiscal stability is indicated when recurring revenues reliably cover recurring expenditures, avoiding dependence on one-time funds for ongoing operations.

What is the purpose of a 'reserve for economic uncertainties' in a school district's budget?

Answer: To maintain a financial cushion against unexpected revenue shortfalls or expenses

A reserve for economic uncertainties provides a financial buffer that allows the district to manage unexpected downturns in revenue or unanticipated cost increases.

An administrator is comparing the district's per-pupil expenditure to similar districts. This is an example of which type of financial analysis?

Answer: Benchmarking

Benchmarking compares a district's financial metrics—such as per-pupil spending—to peer districts or standards to assess relative efficiency and equity.