Domain 1 - Organizational Mgmt.

Question 1

Accounting: Segregation of Duty

Answer 1

No individual should have control of any financial transaction 
• Initiation (check requests)
• Authorization (approval)
• Asset custody (keeping the checkbook)
• Recording the transaction

Question 2

Clean Audit

Answer 2

Statement of Financial Position = fairly presented
Statement of Activities = fairly presented
Statement of Cash Flows = fairly presented

Question 3

Unqualified Audit

Answer 3

Attention given to a particular matter and provides for disclosure of additional financial statements or draws attention to an additional important matter.

Question 4

Who hires the auditor?

Answer 4

The Board of Directors

Question 5

What created regulatory requirements for corporations related to the audit function?

Answer 5

Sarbanes-Oxley

Question 6

Dashboard concept

Answer 6

Identifies critical variables that determine a chapter’s success and a system for measuring with full, safe, low, and warning levels.

Question 7

Five basic steps to set up your dashboard:

Answer 7

1. Revisit the mission and vision of the national organization and the chapter/component.
2. Define the gauges as they relate to the mission.
3. Establish methods to measure success.
4. Conduct a chapter assessment to establish initial dashboard readings.
5. Assign a staff member to regularly monitor the gauges.

Question 8

Balanced scorecard, monitoring

Answer 8

A for-profit means of expressing strategy in measurable terms. Board performance is measured in four categories to provide a “balanced” perspective: financial performance, customer satisfaction, process efficiency and, at the time, innovation.

Question 9

Budgeting, strategic program

Answer 9

Allocating salaries & other overhead to a program budget to know the true profitability of its products and services. (Achieved through systematic study related to staff time to program categories, then applying the calculated prorated share of overhead expense to programs identified.)