School Finance & Budget Management Flashcards

What is the primary purpose of a school district's general fund?

Answer: To account for the primary day-to-day operating expenses of the district

The general fund accounts for the primary operating revenues and expenditures of a school district, including instruction, administration, and support services.

Which budget format organizes resource allocation by specific programs and their associated costs rather than solely by object codes?

Answer: Program-based budgeting

Program-based budgeting organizes expenditures by educational programs and activities, allowing leaders to evaluate costs and outcomes for each individual program.

During which phase of the budget cycle is the proposed budget formally presented to the board of education for approval?

Answer: Budget adoption

The budget adoption phase is when the proposed budget is presented to and approved by the board of education through a formal vote, giving the district legal authority to spend.

In school district accounting, what does the term 'encumbrance' refer to?

Answer: A commitment of funds for a purchase order or contract not yet paid

An encumbrance represents a commitment of budgeted funds for obligations such as purchase orders or contracts that have been made but not yet paid.

Which federal legislation most directly governs Title I, Part A funding allocation to schools serving high concentrations of students from low-income families?

Answer: ESSA

The Every Student Succeeds Act (ESSA) governs Title I, Part A funding, which provides supplemental resources to schools and districts serving high concentrations of economically disadvantaged students.

Zero-based budgeting is best defined as a process in which:

Answer: Every expenditure must be justified from a zero base each budget cycle

Zero-based budgeting requires that all expenditures be justified from the ground up each cycle, rather than using prior year allocations as a starting point.

For most school districts in the United States, the primary local revenue source is:

Answer: Property taxes

Property taxes are the primary local revenue source for the majority of U.S. school districts, which is why local property values significantly influence district funding levels.