CCE Budgeting & Financial Management 5

Question 1

A correctional agency is considering outsourcing food service operations to reduce costs. Before proceeding, the executive should FIRST:

Accepted Answer

Conduct a make-or-buy cost comparison analysis

Answer

A make-or-buy analysis compares the true fully-loaded cost of in-house operations against contracted services, including hidden costs like contract management and transition expenses.

Question 2

In government accounting, the 'modified accrual basis' used in corrections budgeting recognizes revenues when:

Accepted Answer

They are both available and measurable

Answer

Modified accrual accounting recognizes revenues when they are measurable and available to finance current-period expenditures, typically within 60 days of fiscal year end.

Question 3

A correctional executive wants to use savings from reduced overtime to fund a new reentry program. This transfer is MOST likely subject to:

Accepted Answer

Legislative or budget office approval if the transfer crosses appropriation categories

Answer

Transferring funds between appropriation categories typically requires legislative or central budget office authorization, as appropriations represent legally binding spending limits.

Question 4

Which risk is MOST associated with a correctional agency becoming overly dependent on federal grants for core operating expenses?

Accepted Answer

Funding discontinuity when grants expire can disrupt essential services

Answer

When core operations are funded by time-limited federal grants, expiration of those grants can create sudden funding gaps that disrupt programs and require emergency budget action.

Question 5

A correctional facility's energy costs have increased significantly. Which financial management strategy would BEST address this long-term?

Accepted Answer

Implement an energy audit and capital investment in efficiency upgrades with ROI analysis

Answer

An energy audit identifies specific inefficiencies, and capital investments with a positive return on investment reduce long-term operational costs more effectively than recurring supplemental requests.

(CCE) Certified Corrections Executive Practice Test

(CCE) Certified Corrections Executive Practice Test

CCE Budgeting & Financial Management 5