CPRP - Certified Park and Recreation Professional Financial Management and Budgeting Questions and Answers

Question 1

A park and recreation agency is developing its budget for the upcoming fiscal year.
The finance director has instructed all department heads to build their budget requests from scratch, justifying every proposed expense without regard to the previous year's funding levels.
Which budgeting method is being implemented?

Accepted Answer

Zero-Based Budgeting

Answer

Incremental Budgeting

Answer

Performance Budgeting

Answer

Capital Budgeting

Question 2

A community's park and recreation department operates a popular golf course that generates enough revenue from greens fees, cart rentals, and concessions to cover all of its operating and maintenance expenses. Which type of fund is most appropriate for managing the finances of this golf course?

Accepted Answer

Enterprise Fund

Answer

General Fund

Answer

Special Revenue Fund

Answer

Capital Projects Fund

Question 3

A park and recreation director is preparing a multi-year plan that outlines major projects such as building a new community center, renovating a swimming pool, and acquiring land for a new park. This long-range plan, which also identifies estimated costs and potential funding sources, is best described as a:

Accepted Answer

Capital Improvement Plan (CIP)

Answer

Operating Budget

Answer

Master Plan

Answer

Strategic Plan

Question 4

Which of the following is considered an 'earned income' source of revenue for a municipal park and recreation agency?

Accepted Answer

Fees from adult softball league registrations

Answer

Property tax allocations

Answer

A grant from the state

Answer

A donation from a local corporation

Question 5

A park agency needs to replace a 20-year-old maintenance facility and construct three new playgrounds. These projects have a long useful life and high costs. What is the most common and appropriate method for funding these types of large-scale projects?

Accepted Answer

Issuing general obligation bonds

Answer

Increasing program fees for one year

Answer

Using funds from the operating budget

Answer

Holding a series of small fundraising events

Question 6

A park and recreation manager is analyzing the budget and finds that administrative salaries, office utilities, and insurance costs are categorized together. These costs, which support the overall functioning of the department rather than a single specific program, are best classified as:

Accepted Answer

Indirect Costs

Answer

Capital Expenditures

Answer

Direct Costs

Answer

Variable Costs