Term
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Definition
| a system of policies, procedures and practices that are meant to protect the assets of the organization from error, fraud, and guarantee the maintenance of precise records. |
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Term
| 6 components of integrated financial performance management |
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Definition
| Planning- the articulation of goals and objectives; programming- the selection of appropriate activities to realize the planned goals; budgeting-expenditure of plan; financing-financial resources that execute the plan; controlling- means to ensure financial objectives are carried out according to targets and expectations, and evaluating- the activity that determines whether or not objectives and goals have been met. |
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Term
| Why is it important for an organization to have a mission? |
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Definition
| The mission is the purpose for the organization’s existence. All actions of the organization should support the mission directly or indirectly. |
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Term
| How are public, nonprofit and private objectives different? |
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Definition
| Purpose/goals, accountability, financial drivers. Both private and public sector are concerned with the finances of operation and the management of flow of funds. Public and nonprofit produce collective or indivisible goods and/or services that are non-excludible to all. The good and services are based on need and no individuals charges/costs are paid by those who receive the goods or services. While private sector depends on the contribution of investors. |
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Term
| What is meant by the term Muted Market? |
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Definition
| The buyer of services and the user of services are often different people/entities. The result can be disconnected goals and success measures. |
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Term
| What are the key elements of a strategic planning and performance management process? |
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Definition
| Strategic planning-mission statements, goals, objectives, external factors that may hinder achievement, detailed outline and time on future evaluation of the program, how results are established, issues agency goals and objectives and stakeholders and customers. |
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Term
| What is a SWOT analysis? Give some examples. |
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Definition
| SWOT stands for strength (anything internal that may lead to an advantage for the organization in terms of funding), weakness (anything internal that may lead to a disadvantage), opportunity and threat/challenges are social, economic, technological, political/regulatory trends and developments that have implication for the services, clients, donors and other key parts of the organization.S=skilled staff, W= under-developed marketing, O=bank pullback/high nonprofit needs and demands, T=higher risks due to economy. |
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Term
| Describe the Government Performance Results Act. |
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Definition
| Improve the effectiveness of agencies by requiring measurable goals. Linked planning, accountability for results, and performance-based budgets. |
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Term
| How does a “Balanced Scorecard” help assess performance? |
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Definition
| Assesses strategic performance in four distinct and inter-related areas of focus; customer, internal business process, innovation & learning, and financial. |
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Term
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Definition
| If your boss, the city comptroller, told you that the city expected tax revenues to be 15% lower than last year and asked you to prepare decision packages to justify all of the city’s discretionary programs, you would use a _ZERO-BASED_budget. |
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Term
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Definition
| If your boss at New York Assisted Living said “The budget seems pretty good but what would happen if we don’t get an average of 200 residents next year?” You would prepare¬ _FLEXIBLE_ budget to answer her question. |
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Term
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Definition
| A _CAPITAL_ budget reflects the long-lived resources that an organization intends to acquire during the budget year while a(n) _OPERATING_ budget reflects the expected cost of using those resources during that budget year. |
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Term
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Definition
| A _PROGRAM_ allows an organization to plan for different services that it provides across its various functional departments. |
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Term
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Definition
| the difference between _ACTUAL_salaries and _BUDGETED_ salaries. |
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Term
| What is the usefulness of a program performance budget? |
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Definition
| A program performance budget provides for a cost and output/impact view of a particular program. It contains financial and performance measures by program rather than by department. Program evaluations require the use of performance measures. |
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Term
| List the seven Basic Accounting Concepts and Principles |
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Definition
| Money as measure, the entity concept, the going-concern and periodicity, consistency, conservatism and the cost-concept foster, matching, and duality concept. |
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Term
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Definition
| recognizes only activities that can be quantified in monetary terms. |
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Term
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Definition
| requires that financial records are maintained for each legal or economic entity separate from others. |
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Term
| The going-concern and periodicity |
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Definition
| address questions about the time horizon for accounting and financial value. Accounting is based on the assumption that a specific period of time is identified but that the entity will continue for an indefinite time period in the future. |
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Term
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Definition
| requires that accounting standards be applied the same way from one period of time to another. Inconsistencies must be reported. |
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Term
| Conservatism and the cost-concept |
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Definition
| foster confidence in accounting information by choosing the least optimistic choices. Recording assets at the cost rather than “market value” is one application. |
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Term
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Definition
| requires that accounting records match expenses to accomplish an activity with the revenue generated by the same activity. Matching applies to the time period for reporting. |
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Term
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Definition
| recognizes that every accounting transaction has two sides, an exchange of a “give” and a “take.” |
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Term
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Definition
| the preparation of a financial statement, which offers a measurement of past and current financial status mainly to extern users. Financial accounting focuses on the recording of financial transaction and the predation of reliable historical and current financial information for external users. |
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Term
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Definition
| focuses on providing financial information to insider users to plan, measure and improve financial activities. managerial accounting is concerned with the providing information to aid internal management in improving the effectiveness of programming, decision-making, and control. |
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Term
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Definition
| generally accepted accounting principle established by FASB. They are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations, and governments. |
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Term
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Definition
| Financial accounting standards board is the highest authority in establishing generally accepted accounting principles for public and private companies, as well as non-profit entities. |
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Term
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Definition
| Governmental accounting standards board operated under a set of principles, assumption, and constraints, different from those of standard private sector GAPP. |
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Term
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Definition
| Under accrual accounting, Revenues and Support are recognized when an organization _EARNS_ an amount that it is likely to collect and it recognizes Expenses when it _USES_ a resource. |
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Term
| Modified-accrual accounting |
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Definition
| Modified-accrual accounting records Revenue as they _ ARE MEASURABLE AND AVAILABLE _ and Expenditures whey they _ ARE LEGALLY OBLIGATED TO BE PAID (DELIVERED). |
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Term
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Definition
| Under cash basis accounting, Revenue is recorded when _IT IS RECIVED_ and Expenses are recorded when they _ARE PAIDS_. |
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Term
| What is the basic accounting equation? |
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Definition
| ASSETS=LIABILITY + NET ASSETS |
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Term
| 7. What is the equation for the Activities Statement? |
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Definition
| PROGRAM REVENUE – NET (EXPENSE) REVENUE = CHANGE IN ASSETS |
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Term
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Definition
| employs the means to obtain and allocate resources and/or money, based on implied or articulated priorities. it utilizes methods and control to effectively achieve its mission and goals. |
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