ADMINISTRATIVE PROCEDURE MANUAL

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04-0101 1 OF 1 SECTION 4 Finance November 2, 1987 The purpose of this section is to outline the overall purpose for and extent of the Administrative and Business Services Volume of the Administrative

1 OF 1 SECTION 4 Finance November 2, 1987 The purpose of this section is to outline the overall purpose for and extent of the Administrative and Business Services Volume of the Administrative Procedures Manual. The Administrative and Business Services Volume presents all procedures applying to the finance and accounting operations of the College. This volume is designed to be utilized by those College personnel and supportive staff responsible for operational processes in the various areas of finance. The general terms, definitions and procedures presented are designed to be used in conjunction with direct support and guidance from Administrative and Business Services. Date Adopted: November 2, 1987 Page 1 of 5

2 ORGANIZATION OF 1 Section 4 - Finance November 2, 1987 The purpose of this section is to present, for information purposes, the basic organization of Volume IV of the Administrative Procedures Manual. The Administrative and Business Services Volume (Volume IV) of the APM is divided into sixteen (16) chapters as follows: Chapter I II III IV V VI VII VIII I X X XI XII XIII XIV XV XVI Area(s) of Interest Purpose, Organization & Definitions Basic Account Numbers Budget Development & Management Investment Management Payroll Administration Cash Receipts Accounting Cash Funds & Bank Reconciliations Cash Disbursements Accounting Disbursement of Financial Aid Awards Travel Fixed Asset Accounting Accounts Receivable Bad Debt Collections Insurance Coverage Externally Funded Projects Reports Adopted Date: November 2, 1987 Page 2 of 5

3 DEFINITIONS OF 3 The purpose of this section is to present definitions of terms, which will be utilized throughout the volume. The following definitions apply to this volume: Accounting System - A formal communications network that supplies relevant information for planning, control, decision-making, and evaluation. An accounting system is judged by how it helps promote and impel personnel toward organizational goals. Allocation - Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use. Appropriation - An authorization to spend up to a specified dollar amount. Breakeven Point - That level of operations where total expenses equal total revenue. Budget - A plan of action expressed in dollar amounts. Capital Budgeting - Planning for proposed capital outlays and their financing. Cash Flow - The net effect of cash receipts and disbursements for a specified period. Controlling - Obtaining conformity to plans through action and evaluation. Cost Center - The smallest unit of activity or area of responsibility for which costs are accumulated. Cost of Goods Sold - Inventoriable costs released to the current period (an expense) as a result of the sale of goods. Discretionary Costs - Those costs that arise from periodic, usually yearly, appropriation decisions that directly reflect top-management policies. Also called managed costs and programmed costs. Feedback - The data (performance reports and cost analyses) supplied by an accounting system for purposes of investigation, evaluation, and follow-up. Fixed Cost - A cost, which, for a given period of time and range of activity called the relevant Page 3 of 5

4 DEFINITIONS OF 3 range, does not change in total but becomes progressively smaller on a per-unit basis as volume increases. Forecast - In budgeting, a projection of what costs and revenues should be. Functional Authority - The right to command action laterally and downward with regard to a specific function or specialty. Internal Check - The coordinated methods and measures in an organization designed to check the accuracy and validity of organization data and to safeguard assets. This definition represents parts (c) and (d) of the definition of internal control, a more inclusive concept. Internal Control - The coordinated methods and measures in an organization designed to: (a) promote efficiency; (b) encourage adherence to prescribed management plans and policies; (c) check the accuracy and validity of organization data; and (d) safeguard assets. Management by Exception - The practice, by the executive, of focusing his attention mainly on significant deviations from expected results. It might also be called management by variance. Master Budget - The budget document which consolidates the organization's overall plans. Organization Chart - A drawing of lines of authority and responsibility in an organization. Performance Report - The comparison of actual results with budgeted allowances. Reallocation (Reapportionment) - Allocation of the costs of operating the service departments to the various production departments in proportion to the relative benefits or services received by each production department. Responsibility Accounting - A system of accounting that recognizes various responsibility centers throughout the organization and that reflects the plans and actions of each of these centers by allocating particular revenues and costs to the one having the pertinent responsibility. Also called profitability accounting and activity accounting. Return on Investment (rate of return) - The most widely used single measure of a firm's operating efficiency. It is the ratio of net income to invested capital or asset turnover times margin on sales. Service Departments - Those departments that exist solely to aid the production departments by rendering specialized assistance with certain phases of the work. Transfer Price - The price charged by one segment of an organization for a product or service, which it supplies to another segment of the same organization. Page 4 of 5

5 DEFINITIONS OF 3 Variable Cost - A cost which is uniform per unit, but which fluctuates in total in direct proportion to changes in the related total activity or volume. Adopted Date: November 2, 1987 Page 5 of 5

CURRICULUM MAPPING FORM

CURRICULUM MAPPING FORM Course Accounting 1 Teacher Mr. Garritano Aug. I. Starting a Proprietorship - 2 weeks A. The Accounting Equation B. How Business Activities Change the Accounting Equation C. Reporting Financial Information