SSA School Finance & Budget Management 2

Question 1

In governmental fund accounting, 'fund balance' is best defined as:

Accepted Answer

The difference between a fund's total assets and total liabilities at year-end

Answer

The total outstanding bond obligations the district owes to creditors

Answer

The amount of federal funds remaining after all annual expenditures

Answer

The portion of the budget formally allocated to contingency reserve accounts

Question 2

Which type of school district bond is secured by the district's taxing authority and typically requires voter approval for an accompanying property tax increase?

Accepted Answer

General obligation bonds

Answer

Revenue bonds

Answer

Municipal certificates of participation

Answer

Convertible lease bonds

Question 3

A school district receives a grant specifically designated for purchasing science laboratory equipment. This funding is classified as:

Accepted Answer

Categorical (restricted) aid

Answer

Unrestricted general revenue

Answer

Capital outlay entitlement funding

Answer

Discretionary block grant funding

Question 4

Which financial statement provides a summary of a school district's assets, liabilities, and net position at a specific point in time?

Accepted Answer

Balance sheet or statement of net position

Answer

Statement of revenues, expenditures, and changes in fund balances

Answer

Statement of cash flows

Answer

Budget variance report

Question 5

A superintendent identifies a significant structural budget deficit for the upcoming fiscal year. Which approach is MOST sustainable for long-term financial health?

Accepted Answer

Conducting a systematic program review to reduce costs while preserving educational priorities

Answer

Borrowing through short-term tax anticipation notes each year until revenues recover

Answer

Deferring all facility maintenance expenditures to free up operational funds immediately

Answer

Drawing down the fund balance reserve until the local economy improves

Question 6

What does GASB stand for, and why is it significant for school district finance?

Accepted Answer

Governmental Accounting Standards Board — establishes financial reporting standards for U.S. state and local governments

Answer

Government Accounting and Standards Board — sets rules for federal spending

Answer

General Accounting and Standards Bureau — oversees IRS audits of public entities

Answer

Government Auditing Standards Bureau — certifies external auditors for public schools

Question 7

A school district's debt service fund is established to:

Accepted Answer

Accumulate resources for and make payments on long-term debt principal and interest

Answer

Pay salaries and benefits for instructional and support staff

Answer

Fund major capital improvements and new facility construction

Answer

Maintain emergency reserves for unanticipated operational expenses