PCP Budget and Financial Management 2

Question 1

A principal notices that a budget line item is being depleted faster than expected and will be exhausted before year-end. The BEST immediate action is to:

Accepted Answer

Analyze spending patterns and implement cost controls immediately

Answer

Submit a budget amendment to increase the allocation

Answer

Continue spending and address the deficit at year-end

Answer

Transfer funds from another fund without district approval

Question 2

The 'supplement not supplant' rule in federal education funding requires that:

Accepted Answer

Federal funds must add to, not replace, existing state and local funding

Answer

Federal funds must exceed state funding in every category

Answer

State funds supplement federal allocations for special programs

Answer

Federal grants must be matched dollar-for-dollar by local funds

Question 3

A principal is developing a budget proposal for a new STEM laboratory. Which approach BEST demonstrates sound fiscal planning?

Accepted Answer

Conducting a needs assessment and obtaining vendor quotes for accurate cost estimates

Answer

Estimating costs based on a prior unrelated renovation project

Answer

Requesting the maximum allowable amount to ensure sufficient funding

Answer

Allocating funds equally across all departments to ensure fairness

Question 4

Which of the following expenditures would be MOST appropriate for a school's professional development budget?

Accepted Answer

Paying for a teacher to attend a curriculum alignment workshop

Answer

Purchasing classroom furniture for a newly hired teacher

Answer

Funding a student field trip to a science museum

Answer

Buying instructional software licenses for student use

Question 5

When a principal suspects financial fraud in school transactions, the FIRST appropriate step is to:

Accepted Answer

Report the concern through proper channels, such as to the district's internal auditor or superintendent

Answer

Confront the suspected employee directly and privately

Answer

Immediately dismiss the suspected employee pending a personal investigation

Answer

Conduct an informal internal investigation before escalating to superiors

Question 6

Per-pupil expenditure (PPE) is PRIMARILY used by educational leaders to:

Accepted Answer

Compare resource allocation efficiency across schools and districts

Answer

Calculate annual teacher salary increases

Answer

Determine the maximum allowable class size by grade level

Answer

Set individual building maintenance and facilities budgets

Question 7

A grant that requires the recipient school to contribute a portion of the project cost from non-federal funds is known as a:

Accepted Answer

Matching grant

Answer

Formula grant

Answer

Discretionary grant

Answer

Block grant