Corrections Budgeting & Administration Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Corrections Budgeting & Administration flashcards as text
Which of the following best describes a corrections agency's working capital reserve?
Answer: Liquid assets maintained to cover short-term operational cash flow needs
A working capital reserve provides liquidity to meet payroll and operational expenses when appropriated funds have not yet been received.
A CCM reviewing a vendor contract notices a clause allowing automatic annual price increases tied to CPI. This clause is known as:
Answer: Escalation clause
An escalation clause ties contract pricing to an economic index such as CPI, allowing automatic price adjustments without renegotiation.
Which budget document serves as the legal authority for a government agency to spend public funds?
Answer: The appropriations act
The appropriations act, passed by the legislature, is the legal instrument that authorizes an agency to incur obligations and make expenditures.
What is the purpose of a revenue anticipation note (RAN) in corrections finance?
Answer: To provide short-term borrowing against expected future revenues
A RAN is a short-term debt instrument allowing an agency to borrow against revenues it expects to receive, bridging a temporary cash shortfall.
When evaluating competitive bids for correctional food service, which factor is LEAST appropriate to consider in a best-value award?
Answer: Lowest price offered
In a best-value procurement, lowest price alone is insufficient; technical factors such as nutritional standards, past performance, and vendor stability are equally weighted considerations.
A corrections agency is developing a multi-year capital improvement plan (CIP). Which element is essential to include for each proposed project?
Answer: Life-cycle cost analysis including operating and maintenance costs
A life-cycle cost analysis captures acquisition, operating, maintenance, and disposal costs over a project's useful life, enabling true cost comparisons.
Under GASB standards, corrections agencies are required to report capital assets at:
Answer: Original historical cost less accumulated depreciation
GASB requires governmental capital assets to be reported at historical cost less accumulated depreciation, following the historical cost principle.