IL185ILTS Chief School Business Official Practice
Exam
**Question 1.** Which financial planning tool is most appropriate for projecting
future enrollment trends in a district?
A) Cash flow statement
B) Demographic projection model
C) Debt service coverage ratio
D) Capital improvement plan
**Answer:** B
**Explanation:** Demographic projection models use birth rates, migration
patterns, and other data to estimate future student enrollment, essential for
long‑range financial planning.
**Question 2.** A school district wants to align its budget with specific
instructional outcomes. Which budgeting approach best supports this goal?
A) Line‑item budgeting
B) Zero‑based budgeting
C) Performance‑based budgeting
D) Program budgeting
**Answer:** C
**Explanation:** Performance‑based budgeting ties funds to measurable results,
linking resources directly to instructional outcomes.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 3.** Under GASB, which fund type uses the modified accrual basis of
accounting?
A) Enterprise fund
B) General fund
C) Internal service fund
D) Private‑enterprise fund
**Answer:** B
**Explanation:** Governmental funds such as the General Fund report using
modified accrual accounting, recognizing revenues when measurable and
available.
**Question 4.** Which of the following is a categorical state aid program?
A) General State Aid (GSA)
B) Weighted Student Formula (WSF)
C) Title I
D) Local property tax levy
**Answer:** C
**Explanation:** Title I is a federal categorical program targeting schools with
high percentages of low‑income students.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 5.** In the annual external audit, which act requires a Single Audit for
entities receiving federal funds?
A) Sarbanes‑Oxley Act
B) Uniform Guidance (2 CFR Part 200)
C) Federal Audit Act of 1984
D) Government Accountability Office Act
**Answer:** B
**Explanation:** The Uniform Guidance (2 CFR Part 200) mandates a Single Audit
for entities expending $750,000 or more in federal funds.
**Question 6.** Which factor is NOT typically considered when evaluating the
sustainability of a weighted student formula?
A) Per‑pupil cost differentials
B) Teacher seniority rules
C) Student demographic characteristics
D) Funding source volatility
**Answer:** B
**Explanation:** Teacher seniority rules pertain to staffing, not directly to the
financial sustainability of a weighted student formula.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 7.** A district plans to issue general obligation bonds. Which legal
limitation must it observe?
A) Debt service ratio cannot exceed 10% of total revenues
B) Bond proceeds may be used for operating expenses
C) Voter approval is required for issuance
D) Bonds must be repaid within five years
**Answer:** C
**Explanation:** General obligation bonds require voter approval because they
are backed by the taxing power of the district.
**Question 8.** Which procurement method is required for purchases exceeding
the competitive bidding threshold when the goods are specialized and unique?
A) Sole source procurement
B) Competitive sealed bidding
C) Request for proposals (RFP)
D) Direct purchase
**Answer:** C
Exam
**Question 1.** Which financial planning tool is most appropriate for projecting
future enrollment trends in a district?
A) Cash flow statement
B) Demographic projection model
C) Debt service coverage ratio
D) Capital improvement plan
**Answer:** B
**Explanation:** Demographic projection models use birth rates, migration
patterns, and other data to estimate future student enrollment, essential for
long‑range financial planning.
**Question 2.** A school district wants to align its budget with specific
instructional outcomes. Which budgeting approach best supports this goal?
A) Line‑item budgeting
B) Zero‑based budgeting
C) Performance‑based budgeting
D) Program budgeting
**Answer:** C
**Explanation:** Performance‑based budgeting ties funds to measurable results,
linking resources directly to instructional outcomes.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 3.** Under GASB, which fund type uses the modified accrual basis of
accounting?
A) Enterprise fund
B) General fund
C) Internal service fund
D) Private‑enterprise fund
**Answer:** B
**Explanation:** Governmental funds such as the General Fund report using
modified accrual accounting, recognizing revenues when measurable and
available.
**Question 4.** Which of the following is a categorical state aid program?
A) General State Aid (GSA)
B) Weighted Student Formula (WSF)
C) Title I
D) Local property tax levy
**Answer:** C
**Explanation:** Title I is a federal categorical program targeting schools with
high percentages of low‑income students.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 5.** In the annual external audit, which act requires a Single Audit for
entities receiving federal funds?
A) Sarbanes‑Oxley Act
B) Uniform Guidance (2 CFR Part 200)
C) Federal Audit Act of 1984
D) Government Accountability Office Act
**Answer:** B
**Explanation:** The Uniform Guidance (2 CFR Part 200) mandates a Single Audit
for entities expending $750,000 or more in federal funds.
**Question 6.** Which factor is NOT typically considered when evaluating the
sustainability of a weighted student formula?
A) Per‑pupil cost differentials
B) Teacher seniority rules
C) Student demographic characteristics
D) Funding source volatility
**Answer:** B
**Explanation:** Teacher seniority rules pertain to staffing, not directly to the
financial sustainability of a weighted student formula.
, IL185ILTS Chief School Business Official Practice
Exam
**Question 7.** A district plans to issue general obligation bonds. Which legal
limitation must it observe?
A) Debt service ratio cannot exceed 10% of total revenues
B) Bond proceeds may be used for operating expenses
C) Voter approval is required for issuance
D) Bonds must be repaid within five years
**Answer:** C
**Explanation:** General obligation bonds require voter approval because they
are backed by the taxing power of the district.
**Question 8.** Which procurement method is required for purchases exceeding
the competitive bidding threshold when the goods are specialized and unique?
A) Sole source procurement
B) Competitive sealed bidding
C) Request for proposals (RFP)
D) Direct purchase
**Answer:** C
