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Administration and Finance Flashcards

7 cards from real CPRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Administration and Finance flashcards as text

  1. Which financial statement shows a park and recreation agency's revenues and expenditures over a specific period?

    Answer: Statement of revenues and expenditures

    The statement of revenues and expenditures (or statement of activities) summarizes financial activity over an accounting period.

  2. A park district is considering issuing general obligation bonds. Which factor most directly affects the interest rate the agency will pay?

    Answer: The agency's credit rating

    Credit ratings assigned by agencies like Moody's or S&P directly influence bond interest rates by signaling the issuer's creditworthiness.

  3. What is the primary purpose of an indirect cost allocation plan in a parks agency?

    Answer: To distribute overhead costs across programs and departments

    Indirect cost allocation plans systematically distribute shared overhead costs (administration, utilities) to programs for accurate cost accounting.

  4. A recreation manager discovers mid-year that a program is significantly over budget. Which action should be taken FIRST?

    Answer: Identify the cause of the variance before making decisions

    Identifying the root cause of a budget variance is the essential first step before any corrective action can be properly targeted.

  5. Which procurement method is typically required when a parks agency purchases goods or services above a specified dollar threshold?

    Answer: Competitive sealed bidding

    Most government agencies require competitive sealed bidding (formal competitive bidding) for purchases above a set threshold to ensure transparency and value.

  6. What does the term 'encumbrance' mean in governmental accounting?

    Answer: A reservation of funds for a future purchase obligation

    An encumbrance is a reservation of appropriated funds to cover a commitment or purchase order that has not yet been paid.

  7. Under the Americans with Disabilities Act (ADA), which aspect of facility planning directly affects a parks agency's capital budget?

    Answer: Transition plan costs for accessibility improvements

    ADA transition plans identify barriers and schedule capital expenditures to bring facilities into compliance over time.