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WGU D023 SCHOOL FINANCIAL LEADERSHIP
EXAM | COMPREHENSIVE Q&A FOR
GUARANTEED SUCCESS
Activity Funds (what, how, whom?) -correct-answer-Activity funds are established
to direct and account for monies used to support cocurricular and extracurricular
student activities. -cocurricular activities are any kinds of school-related activities
outside the regular classroom that directly add value to the formal or stated
curriculum. Cocurricular activities involve a wide range of student clubs and
organizations.
-Extracurricular activities encompass a wide variety of other district-directed
activities, typified by organized sports and other nonacademic interscholastic
competitions.
payments in lieu of taxes -correct-answer-Amounts paid by one government in
place of property taxes they are not required to pay. Generally occurs when a
jurisdiction contains a substantial amount of facilities of other governments; for
example, when the federal government makes payments to a local school district
in lieu of property taxes it would be required to pay on a military base within the
district if federal property were not tax-exempt.
Student activity funds -correct-answer-which belong to the students and are used
to support student organizations and clubs
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-fiduciary
-controlled by principal
-various clubs such as art, auto, cheerleaders, chorus, debate, drama, foreign
language, journalism, pep, and photography, as well as class (sophomore, junior,
senior) funds, the marching band, the National Honor Society, and the student
council
District activity funds -correct-answer-which belong to the school district used to
support district programs
-special revenue
-deposited in district accounts
-athletics, Book Fair, lyceums, concerts, and plays
Capital Outlay -correct-answer-funds used for fixed assets, equipment,
construction projects and the purchase of property
Where do capital funds come from (3 ways)? -correct-answer-1. pay as you go
2. building reserve fund
3. bonding
Bonding -correct-answer--Most common
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-Issue bonds to pay for buildings
-Take the revenue from the bonds and build the building and then the people who
invested will get the money back with interest on it
-Complicated with lawyers and accountants
-District has a credit rating
-"Like a mortgage"
-Leads to inequities in that wealthy schools can get low interest bonds, and low
income schools get high interest bonds
serial bonds -correct-answer-This kind of bond provides for payment of accrued
interest each year and also for retirement of part of the principal each year on an
amortized basis. This reduces the total interest cost as interest is charged only on
the unpaid balance of the principal. It also affords an extension of further bonding
capacity as the amounts on the principal are paid.
Straight Term Bonds -correct-answer--debt certificates that require money to be
saved until the end of the bonding period, when it is paid (with interest) to retire
the certificates
-little value to a school district
Bond Amortization -correct-answer-Reducing the amount of a bond discount or
premium over time.
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callable bonds -correct-answer-Bonds that give the issuer the option to retire
them at a stated amount prior to maturity.
-may cost more
-"refundable"
registered bonds -correct-answer-bonds issued in the names and addresses of
their holders
Building Reserve Fund -correct-answer-Put money into a capitol reserve every
year, and save for 5-? years. Many states limit how much you can have into a
savings account because they don't want taxpayer money being saved.
Mill Levy -correct-answer-A way property tax is often expressed in which the
number of mills, or thousandths of a dollar, that are charged per $1000 of
assessed value.
How are capital funds used? -correct-answer-for infrastructure
WGU D023 SCHOOL FINANCIAL LEADERSHIP
EXAM | COMPREHENSIVE Q&A FOR
GUARANTEED SUCCESS
Activity Funds (what, how, whom?) -correct-answer-Activity funds are established
to direct and account for monies used to support cocurricular and extracurricular
student activities. -cocurricular activities are any kinds of school-related activities
outside the regular classroom that directly add value to the formal or stated
curriculum. Cocurricular activities involve a wide range of student clubs and
organizations.
-Extracurricular activities encompass a wide variety of other district-directed
activities, typified by organized sports and other nonacademic interscholastic
competitions.
payments in lieu of taxes -correct-answer-Amounts paid by one government in
place of property taxes they are not required to pay. Generally occurs when a
jurisdiction contains a substantial amount of facilities of other governments; for
example, when the federal government makes payments to a local school district
in lieu of property taxes it would be required to pay on a military base within the
district if federal property were not tax-exempt.
Student activity funds -correct-answer-which belong to the students and are used
to support student organizations and clubs
,2|Page
-fiduciary
-controlled by principal
-various clubs such as art, auto, cheerleaders, chorus, debate, drama, foreign
language, journalism, pep, and photography, as well as class (sophomore, junior,
senior) funds, the marching band, the National Honor Society, and the student
council
District activity funds -correct-answer-which belong to the school district used to
support district programs
-special revenue
-deposited in district accounts
-athletics, Book Fair, lyceums, concerts, and plays
Capital Outlay -correct-answer-funds used for fixed assets, equipment,
construction projects and the purchase of property
Where do capital funds come from (3 ways)? -correct-answer-1. pay as you go
2. building reserve fund
3. bonding
Bonding -correct-answer--Most common
,3|Page
-Issue bonds to pay for buildings
-Take the revenue from the bonds and build the building and then the people who
invested will get the money back with interest on it
-Complicated with lawyers and accountants
-District has a credit rating
-"Like a mortgage"
-Leads to inequities in that wealthy schools can get low interest bonds, and low
income schools get high interest bonds
serial bonds -correct-answer-This kind of bond provides for payment of accrued
interest each year and also for retirement of part of the principal each year on an
amortized basis. This reduces the total interest cost as interest is charged only on
the unpaid balance of the principal. It also affords an extension of further bonding
capacity as the amounts on the principal are paid.
Straight Term Bonds -correct-answer--debt certificates that require money to be
saved until the end of the bonding period, when it is paid (with interest) to retire
the certificates
-little value to a school district
Bond Amortization -correct-answer-Reducing the amount of a bond discount or
premium over time.
, 4|Page
callable bonds -correct-answer-Bonds that give the issuer the option to retire
them at a stated amount prior to maturity.
-may cost more
-"refundable"
registered bonds -correct-answer-bonds issued in the names and addresses of
their holders
Building Reserve Fund -correct-answer-Put money into a capitol reserve every
year, and save for 5-? years. Many states limit how much you can have into a
savings account because they don't want taxpayer money being saved.
Mill Levy -correct-answer-A way property tax is often expressed in which the
number of mills, or thousandths of a dollar, that are charged per $1000 of
assessed value.
How are capital funds used? -correct-answer-for infrastructure
