Quiz 10/20

Introduction and State Uniform Accounting System

Encumberance

Goods or services have been delivered, the department is required to pay for the items, but payment has not yet been made

SAM Sections 7620-7680

Contains the general ledger accounts and outlines the purpose and nature of those accounts

Accounting System

Used to record and report accurate and timely information on all phases of financial transactions including a complete coordination of all activities, to ensure that certain objectives are maintained

Encumbrance Accounting

Involves the recognition of commitments incurred by governmental entities that subsequently will be converted into expenditures. Helps to ensure that allotment and appropriation balances are not exceeded

State Controller’s Office

Maintains control accounts of each department’s appropriation to ensure departments do not exceed their legal spending authority

Uniform Codes Manual

The State’s uniform coding system or chart of accounts for accounting, reporting and budgetary purposes

Office Revolving Fund

Acceptable method of disbursement when the normal claim process would result in inefficiencies and time delays

Obligation

A commitment has been made to expend funds, although the goods or services have not yet been received

What is a fund?

A legal, budgeting, and accounting entity that provides for the segregation of moneys or other resources in the State Treasury for obligations in accordance with specific restrictions or limitations. A separate set of accounts must be maintained for each fund to show its assets, liabilities, reserves, and balance, as well as its revenue and expenditures.

What are the four components of the fiscal cycle?

Budgeting, Accounting, Reporting, Auditing

What is an appropriation?

The authorization for a specific agency to make expenditures or to create obligations from a specific fund for a specific purpose; is usually limited in amount and period of time for which it may be expended.

What four major objectives must the State’s uniform accounting system meet?

• Coordination of department records with SCO records

• Uniform and consistent accounting among all state departments

• Consistency between accounting and budgeting

• Uniform reporting for inclusion in financial reports by SCO

What are the three ways departments may obtain cash from the Federal Government?

Departments receive federal cash through the federal letter of credit, cash advance, or as reimbursement for their federal expenditures

What is an allotment?

The approved division of an amount (usually of an appropriation) to be expended for a particular purpose during a specified time period.