Municipal Finance Administration Final Questions With
Complete Solutions
1996 Comprehensive Education Improvement Funding Act
Correct Answers Established Core Curriculum
Direct commissioner to calculate cost of providing standards
Base aid on cost per pupil
Provide additional aid categories
Found constitutional for NON ABBOTT districts
Abott v Burke changes Correct Answers Declared 1975 act
unconstitutional
Created Quality of Education of 1990 QEA
Establish a foundation of formula system
Special needs districts were to receive extra aid
Allow an equity spending cap
Accounts Receivable Systems Correct Answers Money owed
the municipality by state agencies, taxpayers etc are recorded
Accrual Method Correct Answers Expenses are recognized
when they are encumbered.
Revenue is recognized when it is earned (ie accounts receivable
are recognized as revenue)
Accused official is entitled to: Correct Answers due process,
such as notice, hearing, counsel and a confidential process.
Appeals from determinations of the Local Finance Board go to
the Office of Administrative Law, where the official is entitled
to a full hearing.
,After Audit Correct Answers Governing body must pass
resolution accepting and indicating they have read comments
and have adopted a corrective action plan within 45 days of
receipt
Will at times prepare AFS in smaller Locals
All Schools are required to adopt and maintain a Correct
Answers double entry bookkeeping system
GAAP promulgated
Annual audit activities Correct Answers Performs sample
compliance tests on financial transactions
Any noncomformity is reported as comments
Recommendations are provided as well at times
Annual audit must be completed within Correct Answers 6
months of the end of the fiscal year
Annual Audit performed by a Correct Answers RMA -
registered Municipal Auditor
Anyone doing business at over 15% of threshold should Correct
Answers have a BRC on file
Article VIII section IV Correct Answers Legislature must
provide for through and efficient education of free public
schools for children 5-18
Creates state school fund for support of free public schools
Legislature may prescribe for transport of children to and from
any school
Creates State Department of Education
,Authority accountability Correct Answers Constituency groups
who keep eye on authority
User groups
Parent government
State, county, local
People residing in area
Wvrsa example air scrubber
Authority budget highlights and messaging Correct Answers
Effect on user fees
Changes in income by source
Capital improvement and projections
Local economy as it affects the authority
Provisions for financing capital improvements
Projected balance of retained earnings or deficit
Rate schedules and fees
Delinquent accounts impact as percent to billings
Amount due from local unit customers
Copies of grant agreements etc.
Schedule of principal and interest for budget year and
succeeding 4 years
Depreciation of property
Subject to annual audit
Authority budgeting Correct Answers Authorities like districts
must submit budget 60 days prior to fiscal year
Goes to DLGS
Annual budgets submitted to DLGS
BANs must be noticed to local finance board
Audits sent to DLGS
, Authority Fee Structures Correct Answers User fees = pay as
you go compared to general taxation
Connection fees are a one time capital payment
Connection fees
Charges must be uniform within each class
Amount shall not exceed cost of the connection
Authority Indebtedness Correct Answers Outstanding debt
considered to be overlapping debt
Financed by user revenues imposed by authority
It is not a direct obligation of the underlying governing unit
Authority independence Correct Answers Authority can be truly
independent
If there is no termination date in the enabling act of charter
Allowing freedom of call ability of bonds
Reappointing present members of the board at end of each term
Arranging that appointed members having different terms than
elected officials of appointing governing body
Allowing executive director be appointed by board members
Denying other governments the ability to remove chair or
members other than for misconduct at public hearing
Finances controlled by authority
Award of contract from a bid exception must be advertised
Correct Answers within 20 days of the award
BA responsible for Correct Answers Day to day
Purchasing, budget development, Control debt Management,
Payroll Processing, Cash receipts, and disbursements etc.
Complete Solutions
1996 Comprehensive Education Improvement Funding Act
Correct Answers Established Core Curriculum
Direct commissioner to calculate cost of providing standards
Base aid on cost per pupil
Provide additional aid categories
Found constitutional for NON ABBOTT districts
Abott v Burke changes Correct Answers Declared 1975 act
unconstitutional
Created Quality of Education of 1990 QEA
Establish a foundation of formula system
Special needs districts were to receive extra aid
Allow an equity spending cap
Accounts Receivable Systems Correct Answers Money owed
the municipality by state agencies, taxpayers etc are recorded
Accrual Method Correct Answers Expenses are recognized
when they are encumbered.
Revenue is recognized when it is earned (ie accounts receivable
are recognized as revenue)
Accused official is entitled to: Correct Answers due process,
such as notice, hearing, counsel and a confidential process.
Appeals from determinations of the Local Finance Board go to
the Office of Administrative Law, where the official is entitled
to a full hearing.
,After Audit Correct Answers Governing body must pass
resolution accepting and indicating they have read comments
and have adopted a corrective action plan within 45 days of
receipt
Will at times prepare AFS in smaller Locals
All Schools are required to adopt and maintain a Correct
Answers double entry bookkeeping system
GAAP promulgated
Annual audit activities Correct Answers Performs sample
compliance tests on financial transactions
Any noncomformity is reported as comments
Recommendations are provided as well at times
Annual audit must be completed within Correct Answers 6
months of the end of the fiscal year
Annual Audit performed by a Correct Answers RMA -
registered Municipal Auditor
Anyone doing business at over 15% of threshold should Correct
Answers have a BRC on file
Article VIII section IV Correct Answers Legislature must
provide for through and efficient education of free public
schools for children 5-18
Creates state school fund for support of free public schools
Legislature may prescribe for transport of children to and from
any school
Creates State Department of Education
,Authority accountability Correct Answers Constituency groups
who keep eye on authority
User groups
Parent government
State, county, local
People residing in area
Wvrsa example air scrubber
Authority budget highlights and messaging Correct Answers
Effect on user fees
Changes in income by source
Capital improvement and projections
Local economy as it affects the authority
Provisions for financing capital improvements
Projected balance of retained earnings or deficit
Rate schedules and fees
Delinquent accounts impact as percent to billings
Amount due from local unit customers
Copies of grant agreements etc.
Schedule of principal and interest for budget year and
succeeding 4 years
Depreciation of property
Subject to annual audit
Authority budgeting Correct Answers Authorities like districts
must submit budget 60 days prior to fiscal year
Goes to DLGS
Annual budgets submitted to DLGS
BANs must be noticed to local finance board
Audits sent to DLGS
, Authority Fee Structures Correct Answers User fees = pay as
you go compared to general taxation
Connection fees are a one time capital payment
Connection fees
Charges must be uniform within each class
Amount shall not exceed cost of the connection
Authority Indebtedness Correct Answers Outstanding debt
considered to be overlapping debt
Financed by user revenues imposed by authority
It is not a direct obligation of the underlying governing unit
Authority independence Correct Answers Authority can be truly
independent
If there is no termination date in the enabling act of charter
Allowing freedom of call ability of bonds
Reappointing present members of the board at end of each term
Arranging that appointed members having different terms than
elected officials of appointing governing body
Allowing executive director be appointed by board members
Denying other governments the ability to remove chair or
members other than for misconduct at public hearing
Finances controlled by authority
Award of contract from a bid exception must be advertised
Correct Answers within 20 days of the award
BA responsible for Correct Answers Day to day
Purchasing, budget development, Control debt Management,
Payroll Processing, Cash receipts, and disbursements etc.
