Exam (elaborations)
Certified Association Executive Flash Cards with 100% correct answers | verified | latest update 2024
Certified Association Executive Flash Cards with 100% correct answers | verified | latest update 2024
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Certified Association Executive FlashCards
Accounting: Segregation of Duty - ANS-No individual should control all four aspects of
any financial transaction:
Initiation (check request)
Authorization (approval to pay)
Asset custody (Keeping the checkbook)
Recording transactions (posting)
Qualitative vs Quantitative research - ANS-Qualitative research: Subjective, inductive
research that focuses on quality and is often anecdotal in nature
Quantitative research: focuses on numbers and objective data to test theory.
Clean Audit - ANS-An opinion providing the highest level of assurance that:
The Statement of Financial Position fairly presents the organizations financial position.
The Statement of Activities fairly presents the results of the organization operations
The Statement of Cash Flow fairly presents cash flow.
Summative vs Formative evaluations - ANS-Summative evaluations: something is
examined after it is over and decisions are made as to whether it was satisfactory or
not. A meeting evaluation form is an example of summative evaluation.
Formative Evaluation: methods of examining program activities as they occur and
adjusting them along the way if necessary. Formative evaluation would be collecting
continuous feedback from participants in a program in order to revise the program as
may be indicated.
Unqualified Audit - ANS-An opinion providing the highest level of assurance an audit
can provide.
Attention is given to a particular matter and provides for disclosure of additional financial
statement - or - draws attention to an additional important matter.
Communities of Practice - ANS-Groups of people who gather together to accumulate
and share their collective learning
Statement of Financial Position - ANS-Summarizes the financial makeup of the
organization at a specific point in time.
,The statement reflects Assets, Liabilities and Residual Net Assets representing net
worth
Formerly called the Balance Sheet.
Consent AGENDA - ANS-Maximizes board and committee effectiveness, consent
agenda is a batched list of items for approval by the board or committee. Items on the
consent agenda are routine and non-controversial and are given to board members
prior to the meeting.
Any member can remove an item from the consent agenda for discussion. When this is
requested, it is done with no questions asked.
In a single motion, the board approves the entire agenda. This eliminates the need for
most oral reporting at meetings.
Statement of Activities - ANS-Shows the organization's financial activity by month and
on a year-to-date basis.
The Activity Statement reports Revenue, Expense and results in net income or net loss.
Formerly called the Statement of Revenue and Expense - or - Profit and Loss
Statement
Affiliation Agreements (Contracts) - ANS-A Memorandum of Understanding (MOU) or
partnership between the parent org. and the chapters or affiliates. The agreement binds
both organizations and sets forward how each is to be governed, the extent one is an
agent of the other and how the chapter is permitted to use the name of the parent.
Balanced Score Card (Monitoring) - ANS-A popular for-profit means of expressing
strategy in measurable terms.
Board performance is measured in four categories that provide a more balance
perspective:
Financial performance
Customer Satisfaction
Process Efficiency
Innovation
,Dialogue before deliberation - ANS-On key issues before the org., leadership should
engage in dialogue with members at large. After dialogue, leadership should bring what
has been learned to the board room for deliberation on the issue.
This process keeps the leadership relevant to the membership and the membership
engaged with the Org.
Branding - ANS-A marketing process that incorporates a singular look, feel and
message in building a belief about your organization and its products.
It creates the perception that there is no product on the market quite like yours.
The power of a brand is its ability to influence purchasing behavior.
Governance - ANS-The board is the chief governing body, ensuring that the org
achieves that it should and avoids unacceptable situations.
Strategic Program Budgeting - ANS-A budgeting best practice - salaries and other
overhead should be allocated to a program budget to know the true profitability of the
products and services.
This is achieved by conducting a systematic study relating allocation of staff time to
program categories and applying a share of the overhead expense to the identified
programs.
Transparency (Governance) - ANS-Operating in an open and accountable manner and
providing the public with information it can use to evaluate the organization's
performance
Dashboard Indicators - ANS-Dashboards identify:
1) Critical variables that determine success
2) A system for measuring success with Full, Safe, Low and Warning levels.
The first step in adopting a dashboard approach is to define the indicator values that fit
your organization.
Five steps to setting up dashboards:
1) Revisit mission and vision of the organization
2) Define the gauges as they relate to the mission
3) Establish methods to measure success
, 4) Conduct an assessment to establish initial readings
5) Assign staff to regularly monitor the gauges
Acting in Good Faith/Bad Faith - ANS-Acting in good faith involves using ordinary due
diligence and care so that you will not be found personally liable for debts or
responsibilities of the Org. (Even incompetence or bad judgement is not sufficient
grounds for personal liability).
Acting in bad faith is based on gross negligence and intentional disregard that causes
injury, violates antitrust laws or is beyond the scope of authority. Bad Faith decisions
can incur personal liability.
Annual Audit - ANS-Management is responsible for the organization's financial reports
and the information within.
The auditor is responsible for verifying the amounts included in the reports.
The Board hires the external auditor as part of its fiduciary responsibility. - It is a conflict
of interest for the CSE or CFO to hire the auditor.
Financial records must agree with the reports certified by the auditor. Any changes the
auditor deems necessary are subject to acceptance by management.
Actual vs. Apparent Authority (Governance) - ANS-Actual Authority: Any party who has
actual authority will be equally responsible for obligations or debts incurred.
Apparent Authority (chapters/parent): May be inferred by a third party where the
national organization permits the chapter to behave as if it has actual authority.
Apparent authority (employment/antitrust): An employer can be responsible for
wrongdoing of an agent/employee even if the agent only appears to be authorized.
(Hydrolevel case applied this concept to volunteers as well in that the org is strictly
liable when it fails to prevent antitrust violations through misuse of the orgs reputation
by its agents - including members volunteers or lower level employees
Financial Controls - ANS-There are four factors essential to good internal financial
controls.
1) Clear lines of authority
2) Clear definition and acceptance of responsibility
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