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Study Guide

Field 056: School Treasurer
Sample Multiple-Choice Questions

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Domain I–Governance and Leadership

Objective 0001
Understand the legal roles and responsibilities of the treasurer as the chief fiscal officer of the school district and how to participate fully as a member of the school district leadership team.

During the implementation of a school district's strategic plan, the treasurer works to identify and provide information regarding the financial resources required to effectively support the strategic plan and associated organizational goals. The treasurer will be able to fulfill this responsibility effectively if the strategic plan includes:

  1. clearly delineated materials, services, personnel, and timelines for the completion of all initiatives and programs.
  2. measurable objectives that are clearly articulated and aligned with the district's mission and vision.
  3. documentation of internal board of education assumptions and discussions prior to approval of the plan.
  4. statements and assurances that all resources related to the plan comply with relevant laws and district policies.
Answer
Correct Response: A. Identifying the necessary materials, services, and timelines will help the treasurer provide accurate financial information and determine the extent to which the district can commit fiscal resources to the plan.

A treasurer regularly takes part in meetings of the district's leadership team. The treasurer believes that their proper role to take is to serve as an advisor to the committee, but that sometimes it is important to act as an advocate for a particular point of view. It would be most important for the treasurer to step outside the role of advisor and act as advocate when members of the committee are discussing which of the following topics?

  1. the presentation of a school-bond issue to community members and other district stakeholders
  2. a proposal that the treasurer believes would undermine the long-term fiscal stability of the district
  3. how additional funding for the district's after-school programs will affect the transportation and custodial budgets
  4. a proposal that the treasurer believes would require transferring funds from one budget account to another
Answer
Correct Response: B. While a district treasurer may not have the educational expertise necessary to speak to the benefits of a particular proposal, they have both the knowledge and responsibility as the district's fiscal steward to advocate for a position if the proposal threatens the long-term financial health of the district.

Objective 0002
Understand how to establish and maintain sound fiscal practices that support school district programs, policies, and procedures in collaboration with the board of education, superintendent, district leadership team, and other stakeholders.

The leadership team of a school district is considering the implementation of a new science, technology, engineering, and mathematics (STEM) program at both the district middle school and high school. The treasurer should provide answers to which one of the following questions to best help the team make its decision?

  1. How many students currently enrolled in the district will benefit from the new program?
  2. Can the district meet the costs associated with starting the program and sustaining it?
  3. Can current facilities support the program and its possible expansion in the future?
  4. Would additional staff members be needed to run the program successfully?
Answer
Correct Response: B. The treasurer in this scenario has to consider both immediate costs as well as future commitments. The district's ability to sustain the program would, in large part, be determined by treasurer's answers regarding this question.

A school district is upgrading its business office technology by purchasing new computer hardware and software that will streamline operations and increase overall office efficiency. Implementation of the new technology will require several formal training sessions with office staff and some upgrading of peripheral devices. When calculating the cost-effectiveness of the new program, which of the following factors would be considered a "hidden cost?"

  1. staff time taken from normal duties during training sessions
  2. installation and maintenance costs of new hardware and software
  3. expenses for disposing of replaced computers and peripherals
  4. lost productivity until staff members learn to use the new technology efficiently
Answer
Correct Response: D. An initial hidden cost for a school district in this scenario would be the downtime or slowdown in productivity as staff members learned to operate the new system. Over time, this hidden cost would be mitigated by improved efficiency as the staff learned to operate the new system efficiently.

Domain II–Financial Management, Accounting, and Reporting

Objective 0003
Understand how to collect, analyze, interpret, and report financial data for budgeting, forecasting, and decision making.

A school district planning committee is charting educational priorities for the next few years. One faction within the committee is seeking to increase the allocation of resources for an expanded technological literacy program in district middle and high schools. Other members of the committee are concerned about what this would mean for funding of other programs such as fine and performing arts, languages, and library and media services. The treasurer can best contribute to this discussion by:

  1. asking members in favor of the proposal to develop an analysis of the funds needed and the existing programs from which they would be drawn.
  2. reassuring members who are opposed to increased funding for technology literacy that district revenues would likely increase in the near future.
  3. providing current levels of revenue and expenditures, five-year projections, and other financial data to members on both sides of the proposal.
  4. analyzing the current budget and deciding which programs would be cut to fund technology literacy programs.
Answer
Correct Response: C. Given the scenario, it is important that the treasurer not advocate for one side or the other publicly. The treasurer could most appropriately contribute to the stakeholder discussion by providing detailed, current, and clear information about the district's finances.

One of the primary advantages of deploying an Education Management Information System (EMIS) in a school district is that such a system:

  1. facilitates the collection and analysis of a wide range of academic, administrative, and operational data in one place.
  2. costs less to install, maintain, and use than other information management tools such as spreadsheets and databases.
  3. requires only minimal training before district business personnel can apply the system effectively to manage financial data.
  4. allows the use of simulations to model different scenarios using various combinations of assumptions about financial conditions.
Answer
Correct Response: A. The range of data produced and utilized by school districts is considerable. Using an EMIS to facilitate the collection and analysis of this data in decision-making processes represents an efficient use of technology.

Objective 0004
Understand public school funding and the school district's resource allocations via the appropriation and budget process.

To calculate the amount of per-pupil state aid a school district receives in Ohio, the state starts with a base amount. The base amount is then reduced by which of the following?

  1. gross revenues of the district's businesses
  2. local capacity
  3. amount paid by district residents in state taxes
  4. federal adjusted gross income of the district residents
Answer
Correct Response: B. Local capacity allows the Ohio state government to distribute its financial resources in a manner based on district need and the ability that districts have to fund their efforts with local revenue.

A treasurer prepares a district’s five-year forecast. Changes to which of the following variables are most likely to have the biggest impact on the latter years of the forecast?

  1. the state budget adopted every two years
  2. the supplies and materials ordered
  3. the number of homes bought and sold in the district
  4. the number of students that graduate from the district
Answer
Correct Response: A. Changes in the state budget would be expected to result in adjustments to unrestricted and restricted state grants. These grants are among the major revenue sources for districts.

Objective 0005
Understand how to manage school district finances, including managing cash and debt, accounting practices, auditing procedures, and accurate financial reporting.

In accordance with Uniform School Accounting System coding practices, monies for providing services and materials to in-district students attending nonpublic schools within a district would most likely come from:

  1. the Auxiliary Services fund.
  2. the Alternative Schools fund.
  3. the Other Grants fund.
  4. the Disadvantaged Children/Targeted Assistance fund.
Answer
Correct Response: A. School districts use Generally Accepted Accounting Practices because they are uniform and consistent across organizations. A standard state-level fund identified in this system is the Auxiliary Services fund. The purpose of this fund is to supplement districts faced with costs such as payments to nonpublic schools.

When managing monthly cash flow, which of the following practices is most important for a treasurer to follow?

  1. prioritizing fixed expenditures over discretionary expenditures
  2. making disbursements only when all expected revenues are collected
  3. excluding state aid from cash flow projections since it is not received until the end of the fiscal year
  4. discounting one-time receipts or disbursements, such as significant capital purchases, from cash flow projections
Answer
Correct Response: A. Since many fixed expenditures are the result of contractual agreements, prioritizing these expenditures is the most prudent and responsible allocation of fiscal resources when managing cash flow.

Domain III–Capital Asset Management, Purchasing Procedures, and Risk Management

Objective 0006
Understand the acquisition, financing, and maintenance of school buildings and other capital assets.

Once a school board opens bids for a construction project, it must award and execute a contract with the successful bidder within which of the following timeframes?

  1. 14 days
  2. 30 days
  3. 60 days
  4. 90 days
Answer
Correct Response: B. The Ohio Revised Code establishes timelines and financial thresholds regarding open bidding for public school construction projects. One of the timelines calls for districts to enter into a contract with a successful bidder no later than thirty days after a bid is accepted.

Which of the following strategies would be most appropriate and effective for protecting a district's capital equipment such as maintenance vehicles and snowblowers?

  1. working with building leaders to conduct regular walk-throughs of school facilities to inspect the condition of equipment
  2. communicating with the maintenance department to ensure that a schedule of preventative maintenance is in place
  3. requesting maintenance staff to prepare a quarterly summary of expenditures for all repairing for all district equipment
  4. promptly replacing each piece of equipment as it reaches the end of its expected life
Answer
Correct Response: B. While the treasurer has no direct responsibility for the upkeep of the capital equipment in the scenario, effective communication with the maintenance department about service schedules would help in the fiscal planning process as equipment and vehicles age and must be replaced.

Objective 0007
Understand how to manage purchasing procedures and provide financial oversight and analysis of fiscal impact of school district support services.

The primary reason for instituting the practice of segregation of duties for purchasing procedures is to:

  1. allow non-administrative staff to participate in purchasing decisions.
  2. manage the workload of administrators responsible for purchasing duties.
  3. use the expertise of more than one person to resolve purchasing problems.
  4. reduce the possibility of fraud or theft by individuals responsible for purchasing.
Answer
Correct Response: D. By sharing responsibilities for purchasing procedures among several employees in a district or office, an effective system of checks and balances is established.

In general, which of the following budget categories is likely to have the least amount of its funds encumbered?

  1. teacher salaries
  2. transportation
  3. debt service
  4. educational materials
Answer
Correct Response: D. School districts have a number of encumbrances related to services involving contractual obligations with employee bargaining units or outside organizations. Educational materials would be the category that most likely would not involve encumbrances to the level of the other items mentioned.

Objective 0008
Understand how to develop and monitor risk management practices to protect school district assets.

Obtaining input from building/department leaders is most important during which of the following steps in the process of conducting a risk assessment?

  1. defining categories of risk mitigation
  2. identifying potential risks
  3. calculating costs and benefits of various risk responses
  4. prioritizing risks on a scale of severity and frequency
Answer
Correct Response: B. Gathering information and insights from several people with diverse experiences is essential if a district leader is to have a panoramic view of potential risks and their costs.

A contractual risk transfer provides:

  1. liability in agreements between school districts and outside vendors.
  2. liability coverage to a school district in cases involving litigation.
  3. indemnification clauses for personal injury claims against the district.
  4. safe harbor for districts when operating with care, skill, and diligence.
Answer
Correct Response: A. This answer is correct because agreements involving contractual risk transfer place liability with third parties.

Domain IV–Compliance, Communication, Collaboration, and Professionalism

Objective 0009
Understand how to ensure compliance of school district operations with state and federal laws, rules, and regulations; district policies; and contractual provisions and how to model high standards for professional ethics and values.

Some custodians in a school district work overtime hours after a snowstorm. Under the Fair Labor Standards Act (FLSA) and the Ohio Minimum Fair Wage Standards Act (O M F W A), the district is obligated to:

  1. offer those custodians who do not work overtime the opportunity to do so in the future.
  2. establish an overtime pay scale for all contracted employees based on years of service in the district.
  3. ensure that overtime hours are distributed evenly among all full-time custodial staff members in the district.
  4. pay a rate of one-and-one-half times an employee's normal rate of pay, or "hourly wage," for any time above 40 hours of work per week.
Answer
Correct Response: D. The Ohio Revised Code establishes this rate as the amount an employer must pay an employee if they work above 40 hours per week.

Which of the following documents are available to all citizens through a records request?

  1. records involving law enforcement investigations
  2. students' medical records kept by a school nurse
  3. emails exchanged on a district server by school volunteers
  4. information related to a specific child's behavioral record
Answer
Correct Response: C. According to Ohio Revised Code 149.43, correspondences exchanged via a district server are subject to a public records request.

Objective 0010
Understand how to lead, manage, and promote professional development for personnel in the treasurer's office; communicate and collaborate with all stakeholders; and maintain a strong commitment to personal professional development and the advancement of the school treasurer profession.

When starting the annual process of creating a district budget for the upcoming school year, a treasurer reviews the district improvement plan. Which of the following statements explains how this would be most beneficial for the treasurer when creating a budget?

  1. Reviewing the improvement plan allows the treasurer to assess the progress made by the district regarding the plan in the previous year.
  2. Reviewing the improvement plan helps the treasurer align resources with the educational goals of the district.
  3. The treasurer will be prepared to identify areas of the improvement plan where potential cost savings could occur.
  4. The treasurer could offer insights to district educators about how the district could develop an action plan for improvement.
Answer
Correct Response: B. While district leaders often have limited resources and must make difficult choices regarding funding, the mission of educating students should be a guiding principle for each decision made by those leaders.

Staff members working in the treasurer's office submit professional goals each year. The treasurer then reviews the goals and works with each staff member to identify various options for meeting their individual goals. Which of the following statements describes the most significant benefit of this approach to professional development?

  1. Individualizing professional growth activities allows each staff member to become a specialist on specific organizational topics.
  2. Assigning staff members responsibility for their own professional growth frees supervisors to devote more attention to more immediate school concerns.
  3. Allowing staff members to choose a preferred activity supports their engagement with professional learning and promotes ownership of the growth process.
  4. Developing professional goals helps ensure an effective system of accountability and provides additional criteria for staff members' performance evaluations.
Answer
Correct Response: C. Adults learn best when their learning is goal-oriented, involves personal choice, and is largely self-directed.