Final for Principles of Finance (from Jackie's study guide)

Question 1

What are the five responsibilities of the CO as listed in the Corps Accounting Guide?

Answer 1

1. Raise and Secure adequate income to fund the corps programs.
2. Safeguard all income received.
3. Make sure all funds and resources are spent and managed in conformity with the approved corp budget, all existing rules and regulations, and the mission of TSA.
4. Make sure all corps accounting records are up-to-date and accurate at all times.
5. Make sure all reports to funding organizations and supervising headquarters are submitted on a timely basis..

Question 2

How do we release financial information to the public or an individual donor?

Answer 2

With permission from DHQ only!.

Question 3

How long do we maintain records?

Answer 3

We maintain records according to the “Retention Manual” on Lotus/IBM Notes.

It depends on the record.
Bank statements = 7 yrs.
Canceled checks and backup documentation for checks = 7 years
Payroll records are permanent records and may never be destroyed..

Question 4

What is fund accounting?

Answer 4

This is where a “fund” designates a different set of books within a company. Each fund must contain its own balance sheet and must balance within the fund..

Question 5

What is the difference between cash and accrual accounting?

Answer 5

Timing: when we record activity
Accrual: when we earn it or incur debt
Cash: when it is received or when we write the check.

Question 6

What is the purpose of accounting?

Answer 6

To keep track of finances: Record, report, analyze .

Question 7

Who is responsible for accounting?

Answer 7

The Commanding Officer.

Question 8

What is the Fiscal Year for TSA?

Answer 8

Oct. 1 - Sept. 30.

Question 9

What are things that we do on a calendar year?

Answer 9

Cartridges

Employee insurance.

Question 10

What are ‘Board Designated Funds?’

Answer 10

Major Corps group activities that are generally self-supporting and/or account for a material volume of income and/or expenditures (10% of total corps budget) during a fiscal period. .

Question 11

Examples of Board Designated funds:

Answer 11

Home League/Women’s Ministries
Men’s Club/Men’s Ministries
Older Adult Ministries/Senior Clubs
Senior and YP Music: Band/Songsters/Timbrels/etc.
Troops: Girl Guards, Adventure Corps, Sunbeams, etc.
Teens/Torchbearers/Youth Club.

Question 12

Are Board Designated Funds subject to support service?

Answer 12

For the most part, yes. Some are not..

Question 13

How much do you pay in Support Service to DHQ?

Answer 13

10%

.

Question 14

What income is exempt from support service?

Answer 14

World Service-Self Denial
World Service-Harvest Festival
Appropriations/DHQ-Exempt
Gifts-in-Kind
Program Service Fees.
War Cry sales equal to the Cost

Question 15

What are the types of donations?

Answer 15

Unrestricted 
Restricted
Permanently Restricted
Temporarily Restricted
Board Designated Funds.

Question 16

Define ‘Unrestricted Funds’

Answer 16

Donations that are made with no restrictions. This money can be used for the general operating fund or any other way that is needed..

Question 17

Restricted Donations:

Answer 17

Given with conditions for a specific purpose, that money must be used for that purpose..

Question 18

Permanently Restricted Donations:

Answer 18

Funds that are forever controlled in the use of. Any income that results from that donation may or may not be restricted as well. .

Question 19

Temporarily restricted donations:

Answer 19

Must be put away to be used for the specific project that it was given for. When that project starts the money can be used..

Question 20

Regarding types of donations, what are Board Designated Funds:

Answer 20

unrestricted funds for which TSA trustees decide to use for a specific purpose

Question 21

What are gifts in kind/contributed services?

Answer 21

Material donations
Gifts of anything (goods or services) other than money.
Non-cash gifts from the Public

Question 22

What makes up World Services income?

Answer 22

Self-denial: goes overseas

harvest Festival-what comes to Cadets in budgets

Question 23

At what dollar amount are you mandated by the government to provide a receipt/letter for a donation?

Answer 23

$250 or more

Question 24

How many people should count income, especially cash?

Answer 24

2-non related

Question 25

How often do we issue cartridge receipts/listings to our soldiers and attendees?

Answer 25

At least yearly/quarterly.

Question 26

How often do we make deposits?

Answer 26

Weekly

daily during kettles

Question 27

How do we take money out of our Corps bank account?

Answer 27

by check from Shelby on computer

through DHQ, depending on the division

Question 28

Can we use a statement as a backup documentation?

Answer 28

No, it must be an invoice, a statement does not have enough detail.

Question 29

Can we issue manual checks?

Answer 29

No!

Question 30

What needs to be included on receipts for gasoline purchases?

Answer 30

License plate number, Initial, Mileage

Question 31

Who issues checks to employees?

Answer 31

DHQ

Question 32

Who files quarterly and annual payroll reports to government agencies?

Answer 32

DHQ

Question 33

How much is remitted to DHQ/Payroll Company?

Answer 33

Gross wage of employee + FICA (employer portion)

Question 34

How does an officer receive reimbursement for dry cleaning, or child care expenses?

Answer 34

Submit receipts to DHQ on payroll and it will come in a check with the bi-weekly allowance.

Question 35

What is Petty Cash?

Answer 35

A relatively small amount of cash kept at hand for making immediate payments for miscellaneous small expenses.
A Fund to pay small routine or incidental expenses.
The only acceptable way to pay expenses other than by checks issued on approved bank accounts.

Question 36

Who are checks written to?

Answer 36

Whoever is in charge of petty cash (only they should touch it)
Corps Officers

Question 37

What is a Bank Reconciliation?

Answer 37

Reconciling your bank statement with your records.

Question 38

How often do you do the Bank reconciliation?

Answer 38

Monthly

Question 39

What is a Power of Attorney

Answer 39

A legal document listing the authorized representatives of the corporation for the bank account.
Form issued by DHQ to open/ have access to the corps accounts.

Question 40

Who Authorizes Accounts?

Answer 40

DHQ- Territorial Board of Trustees

Question 41

How many signatures are needed?

Answer 41

2 (not related by birth)