CCE Budgeting & Financial Management 4

Question 1

A corrections executive is evaluating two proposals: Option A saves $500,000 but reduces program effectiveness by 30%, while Option B saves $200,000 with no program impact. Which financial management principle guides this decision?

Accepted Answer

Balance cost efficiency against mission effectiveness

Answer

Sound correctional financial management requires balancing fiscal responsibility with mission effectiveness, as cutting costs that undermine public safety may ultimately be more expensive.

Question 2

In corrections, 'population-driven costs' refer to expenses that:

Accepted Answer

Vary proportionally with changes in the inmate census

Answer

Population-driven costs such as food, medical care, and clothing increase or decrease in direct proportion to the number of inmates in custody.

Question 3

Which of the following BEST describes the purpose of an internal audit function in a correctional agency?

Accepted Answer

Providing independent assurance that financial controls and operations are effective

Answer

Internal audit provides independent, objective assurance that the agency's risk management, control, and governance processes are operating effectively.

Question 4

A correctional facility has fixed costs of $2 million per year and variable costs of $28 per inmate per day. With an average daily population of 500 inmates, what is the approximate annual per-inmate cost?

Accepted Answer

$14,220

Answer

Variable costs = $28 × 500 × 365 = $5,110,000; total cost = $7,110,000; per inmate = $7,110,000 ÷ 500 = $14,220 annually.

Question 5

Which type of budget format presents proposed expenditures organized by program goals and measured outcomes rather than by object of expenditure?

Accepted Answer

Performance-based budget

Answer

Performance-based budgets link appropriations to specific outcomes and program goals, allowing legislators to evaluate the value received for dollars spent.

(CCE) Certified Corrections Executive Practice Test

(CCE) Certified Corrections Executive Practice Test

CCE Budgeting & Financial Management 4