Exam 12: Budgeting and Performance Measurement

GASB Concepts Statement No. 2 requires state and local governments to include service efforts and accomplishments measures within the comprehensive annual financial report.

Under certain circumstances a cost generally unallowable under a grant agreement may be allowable.

Service efforts and accomplishments reporting is also referred to as citizen-centric reporting.

Under service efforts and accomplishments (SEA) reporting input measures are quantity measures that reflect the quantity of a service provided, such as the number of lane-miles of road repaired.

The finance officer of a small city has heard that certain items of cost may be allowable under federal grants, even though they were not incurred specifically for the grant. To what source could the finance officer go to determine what costs are allowable under federal grants? Why do you think the federal government specifies the allowability of costs?

Which of the following statements regarding service efforts and accomplishments (SEA) is not True?

The schedule of legally required events in the budgeting process is generally referred to as the:

Which of the following has contributed most to governments' interest in activity-based costing?

Under service efforts and accomplishments (SEA) reporting, outcome measures gauge accomplishments, or the results of services provided, such as the percentage of lane-miles of road in excellent, good, or fair condition.

When planning, budgeting, and performance measurement are related, good performance is rewarded, and consequences exist for substandard performance.

Effective capital budgeting for general capital assets of a government requires:

The sole purpose of preparing a government budget is to show compliance with laws and regulations.

A major disadvantage of activity-based costing (ABC) in a government setting is the very limited number of activities for which it can be used.

A budgeting method that derives the subsequent year's budget from the current year's budget is called:

For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate definition. A. Allowable costs B. Cost principle C. Cost objective D. Indirect costs E. Direct costs F. Activity-based costing ________ 1. A system that identifies specific costs that drive the cost of service or production activities ________ 2. Costs incurred that cannot be identified specifically with a cost objective ________ 3. Costs that meet specific criteria determined by the resource provider ________ 4. A program, function, activity, award, organizational subdivision, contract, or work unit established for the accumulation of costs

Cash receipts and cash disbursement budgets for a government:

The United States Office of Management and Budget (OMB) publishes uniform guidance, which provides streamlined guidelines for grant accounting and reporting.

Identify and define the three broad categories of service efforts and accomplishments (SEA) measures.

The GASB "Budgeting Principle" states that an annual budget should be adopted by (for) every:

Efficiency measures, as the term is used in the service efforts and accomplishments (SEA) literature, can be described as: