Final for Principles of Finance (from Jackie's study guide) Flashcards
What are the five responsibilities of the CO as listed in the Corps Accounting Guide?
- Raise and Secure adequate income to fund the corps programs.
- Safeguard all income received.
- 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.
- Make sure all corps accounting records are up-to-date and accurate at all times.
- Make sure all reports to funding organizations and supervising headquarters are submitted on a timely basis..
How do we release financial information to the public or an individual donor?
With permission from DHQ only!.
How long do we maintain records?
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..
What is fund accounting?
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..
What is the difference between cash and accrual accounting?
Timing: when we record activity
Accrual: when we earn it or incur debt
Cash: when it is received or when we write the check.
What is the purpose of accounting?
To keep track of finances: Record, report, analyze .
Who is responsible for accounting?
The Commanding Officer.
What is the Fiscal Year for TSA?
Oct. 1 - Sept. 30.
What are things that we do on a calendar year?
Cartridges
Employee insurance.
What are ‘Board Designated Funds?’
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. .
Examples of Board Designated funds:
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.
Are Board Designated Funds subject to support service?
For the most part, yes. Some are not..
How much do you pay in Support Service to DHQ?
10%
.
What income is exempt from support service?
World Service-Self Denial World Service-Harvest Festival Appropriations/DHQ-Exempt Gifts-in-Kind Program Service Fees. War Cry sales equal to the Cost
What are the types of donations?
Unrestricted Restricted Permanently Restricted Temporarily Restricted Board Designated Funds.
Define ‘Unrestricted Funds’
Donations that are made with no restrictions. This money can be used for the general operating fund or any other way that is needed..
Restricted Donations:
Given with conditions for a specific purpose, that money must be used for that purpose..
Permanently Restricted Donations:
Funds that are forever controlled in the use of. Any income that results from that donation may or may not be restricted as well. .
Temporarily restricted donations:
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..
Regarding types of donations, what are Board Designated Funds:
unrestricted funds for which TSA trustees decide to use for a specific purpose
What are gifts in kind/contributed services?
Material donations
Gifts of anything (goods or services) other than money.
Non-cash gifts from the Public
What makes up World Services income?
Self-denial: goes overseas
harvest Festival-what comes to Cadets in budgets
At what dollar amount are you mandated by the government to provide a receipt/letter for a donation?
$250 or more
How many people should count income, especially cash?
2-non related
How often do we issue cartridge receipts/listings to our soldiers and attendees?
At least yearly/quarterly.
How often do we make deposits?
Weekly
daily during kettles
How do we take money out of our Corps bank account?
by check from Shelby on computer
through DHQ, depending on the division
Can we use a statement as a backup documentation?
No, it must be an invoice, a statement does not have enough detail.
Can we issue manual checks?
No!
What needs to be included on receipts for gasoline purchases?
License plate number, Initial, Mileage
Who issues checks to employees?
DHQ
Who files quarterly and annual payroll reports to government agencies?
DHQ
How much is remitted to DHQ/Payroll Company?
Gross wage of employee + FICA (employer portion)
How does an officer receive reimbursement for dry cleaning, or child care expenses?
Submit receipts to DHQ on payroll and it will come in a check with the bi-weekly allowance.
What is Petty Cash?
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.
Who are checks written to?
Whoever is in charge of petty cash (only they should touch it)
Corps Officers
What is a Bank Reconciliation?
Reconciling your bank statement with your records.
How often do you do the Bank reconciliation?
Monthly
What is a Power of Attorney
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.
Who Authorizes Accounts?
DHQ- Territorial Board of Trustees
How many signatures are needed?
2 (not related by birth)
