IL224ILTS Chief School Business Official Practice
Exam
**Question 1.** Which of the following best describes a zero‑based budget in a
school district?
A) It starts with the previous year’s budget and makes incremental adjustments.
B) Every program must be justified from a zero base each year.
C) It only includes capital expenditures.
D) It is prepared solely by the finance department.
Answer: B
Explanation: A zero‑based budget requires each program to be justified as if
starting from zero, ensuring resources are allocated based on current needs rather
than historical spending.
**Question 2.** In Illinois, the Educational Fund is primarily used for:
A) Transportation costs.
B) Instructional materials and salaries.
C) Facility maintenance.
D) Debt service payments.
Answer: B
Explanation: The Educational Fund supports instructional expenses, including
teacher salaries and classroom supplies, as required by the Illinois School Code.
**Question 3.** The Equalized Assessed Valuation (EAV) is used to:
A) Determine the amount of state aid a district receives.
, IL224ILTS Chief School Business Official Practice
Exam
B) Calculate property tax rates for local levies.
C) Set employee salaries.
D) Estimate enrollment projections.
Answer: B
Explanation: EAV represents the taxable value of property and is the basis for
calculating local property tax rates that fund school levies.
**Question 4.** Which financial statement provides a snapshot of a district’s
financial position at a specific point in time?
A) Statement of Revenues, Expenditures, and Changes in Fund Balances.
B) Balance Sheet (Statement of Net Position).
C) Statement of Cash Flows.
D) Annual Financial Report (AFR).
Answer: B
Explanation: The Balance Sheet (or Statement of Net Position) shows assets,
liabilities, and fund balances at a particular date.
**Question 5.** Under the Illinois Program Accounting Manual (IPAM), which
fund type must be used for the purchase of a school bus?
A) Educational Fund.
B) Operations and Maintenance Fund.
C) Transportation Fund.
, IL224ILTS Chief School Business Official Practice
Exam
D) Capital Projects Fund.
Answer: C
Explanation: The Transportation Fund is designated for costs directly related to
student transportation, including bus purchases and operation.
**Question 6.** The primary purpose of a long‑range facilities plan is to:
A) Determine teacher evaluation criteria.
B) Forecast future building and maintenance needs.
C) Establish state aid formulas.
D) Set employee benefit rates.
Answer: B
Explanation: A long‑range facilities plan identifies projected building capacity,
renovation, and maintenance requirements over a multi‑year horizon.
**Question 7.** Which of the following is a requirement for a competitive bid in
Illinois?
A) Only one vendor may be invited.
B) Bids must be posted publicly for a minimum of 30 days.
C) The bid must be awarded to the lowest responsible bidder.
D) Bids can be awarded without a formal evaluation.
Answer: C
, IL224ILTS Chief School Business Official Practice
Exam
Explanation: Illinois procurement law mandates that contracts be awarded to the
lowest responsible bidder after a fair and open competitive bidding process.
**Question 8.** Title I funds are classified as:
A) Local revenue.
B) State categorical aid.
C) Federal assistance.
D) Private donations.
Answer: C
Explanation: Title I is a federal program that provides financial assistance to
schools with high numbers of low‑income students.
**Question 9.** Which of the following best defines “predictive maintenance” for
school facilities?
A) Routine cleaning performed daily.
B) Repairs made after equipment fails.
C) Maintenance scheduled based on equipment data trends.
D) Annual repainting of classrooms.
Answer: C
Explanation: Predictive maintenance uses data and condition monitoring to
schedule service before failures occur, optimizing equipment lifespan.
Exam
**Question 1.** Which of the following best describes a zero‑based budget in a
school district?
A) It starts with the previous year’s budget and makes incremental adjustments.
B) Every program must be justified from a zero base each year.
C) It only includes capital expenditures.
D) It is prepared solely by the finance department.
Answer: B
Explanation: A zero‑based budget requires each program to be justified as if
starting from zero, ensuring resources are allocated based on current needs rather
than historical spending.
**Question 2.** In Illinois, the Educational Fund is primarily used for:
A) Transportation costs.
B) Instructional materials and salaries.
C) Facility maintenance.
D) Debt service payments.
Answer: B
Explanation: The Educational Fund supports instructional expenses, including
teacher salaries and classroom supplies, as required by the Illinois School Code.
**Question 3.** The Equalized Assessed Valuation (EAV) is used to:
A) Determine the amount of state aid a district receives.
, IL224ILTS Chief School Business Official Practice
Exam
B) Calculate property tax rates for local levies.
C) Set employee salaries.
D) Estimate enrollment projections.
Answer: B
Explanation: EAV represents the taxable value of property and is the basis for
calculating local property tax rates that fund school levies.
**Question 4.** Which financial statement provides a snapshot of a district’s
financial position at a specific point in time?
A) Statement of Revenues, Expenditures, and Changes in Fund Balances.
B) Balance Sheet (Statement of Net Position).
C) Statement of Cash Flows.
D) Annual Financial Report (AFR).
Answer: B
Explanation: The Balance Sheet (or Statement of Net Position) shows assets,
liabilities, and fund balances at a particular date.
**Question 5.** Under the Illinois Program Accounting Manual (IPAM), which
fund type must be used for the purchase of a school bus?
A) Educational Fund.
B) Operations and Maintenance Fund.
C) Transportation Fund.
, IL224ILTS Chief School Business Official Practice
Exam
D) Capital Projects Fund.
Answer: C
Explanation: The Transportation Fund is designated for costs directly related to
student transportation, including bus purchases and operation.
**Question 6.** The primary purpose of a long‑range facilities plan is to:
A) Determine teacher evaluation criteria.
B) Forecast future building and maintenance needs.
C) Establish state aid formulas.
D) Set employee benefit rates.
Answer: B
Explanation: A long‑range facilities plan identifies projected building capacity,
renovation, and maintenance requirements over a multi‑year horizon.
**Question 7.** Which of the following is a requirement for a competitive bid in
Illinois?
A) Only one vendor may be invited.
B) Bids must be posted publicly for a minimum of 30 days.
C) The bid must be awarded to the lowest responsible bidder.
D) Bids can be awarded without a formal evaluation.
Answer: C
, IL224ILTS Chief School Business Official Practice
Exam
Explanation: Illinois procurement law mandates that contracts be awarded to the
lowest responsible bidder after a fair and open competitive bidding process.
**Question 8.** Title I funds are classified as:
A) Local revenue.
B) State categorical aid.
C) Federal assistance.
D) Private donations.
Answer: C
Explanation: Title I is a federal program that provides financial assistance to
schools with high numbers of low‑income students.
**Question 9.** Which of the following best defines “predictive maintenance” for
school facilities?
A) Routine cleaning performed daily.
B) Repairs made after equipment fails.
C) Maintenance scheduled based on equipment data trends.
D) Annual repainting of classrooms.
Answer: C
Explanation: Predictive maintenance uses data and condition monitoring to
schedule service before failures occur, optimizing equipment lifespan.
