Budgeting & Financial Management Flashcards
7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budgeting & Financial Management flashcards as text
In corrections budgeting, 'encumbrance accounting' is used primarily to:
Answer: Track funds committed to purchase orders before payment is made
Encumbrance accounting reserves funds against a budget once a purchase order is issued, preventing overspending before actual invoices are paid.
A state correctional agency must submit a budget request 18 months before the fiscal year begins. This long lead time is MOST problematic because:
Answer: Population and cost projections may be inaccurate by the time the budget takes effect
Long budget lead times create forecast uncertainty, as inmate population, inflation, and program needs may shift significantly before the budget year begins.
Which financial document provides a snapshot of an agency's assets, liabilities, and net position at a specific point in time?
Answer: Balance sheet (statement of net position)
The balance sheet (or statement of net position in government accounting) shows what an agency owns, owes, and its net financial position at a given date.
A correctional agency contracts with a private vendor for medical services. The contract includes a 'cost-plus' pricing model. This means:
Answer: The agency pays the vendor's actual costs plus a predetermined profit margin
Cost-plus contracts reimburse actual expenditures and add a profit margin, giving vendors little incentive to control costs but ensuring service availability.
Which of the following BEST describes 'proprietary funds' in government accounting as they apply to corrections?
Answer: Business-like activities such as inmate commissary or canteen operations
Proprietary funds account for government activities that operate like businesses, charging users for services, such as an inmate commissary or work program.
When a correctional facility's overtime costs consistently exceed budget projections, the MOST systemic solution is to:
Answer: Conduct a staffing analysis and adjust authorized positions or post coverage plans
Chronic overtime typically signals a structural staffing gap; a position and post coverage analysis identifies whether more authorized positions or scheduling changes are needed.
A correctional agency receives a federal grant requiring a 25% local match. If the federal award is $400,000, how much must the agency contribute?
Answer: $100,000
A 25% local match on a $400,000 federal grant requires the agency to contribute $100,000 (25% of $400,000).