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
A parks agency receives a federal grant restricted to trail development. How should these funds be classified?
Answer: Restricted revenue that may only be spent for the designated purpose
Grant funds with specified purposes must be accounted for as restricted revenue and expended only for the allowable uses defined by the grantor.
Which pricing strategy sets recreation fees based on what the market will bear rather than on actual program costs?
Answer: Market-rate pricing
Market-rate pricing sets fees based on comparable offerings in the marketplace, which may be above or below actual program costs.
What is the primary purpose of a comprehensive annual financial report (CAFR) for a park district?
Answer: To provide a complete audited financial disclosure to stakeholders and the public
A CAFR (now often called an Annual Comprehensive Financial Report, ACFR) provides audited financial statements and full disclosure required for governmental transparency.
Which type of audit is conducted to assess whether an agency's programs are achieving their intended outcomes efficiently?
Answer: Performance audit
A performance audit evaluates the effectiveness, efficiency, and economy of government programs rather than just the accuracy of financial statements.
A park agency's long-term capital improvement plan (CIP) typically covers what time horizon?
Answer: Three to ten years
Capital improvement plans typically project major infrastructure needs, costs, and funding sources over a three- to ten-year planning horizon.
When a recreation agency contracts with a private vendor to operate a concession in a park, which agreement type is most commonly used?
Answer: Concession agreement
A concession agreement grants a private party the right to operate a commercial activity within a public park under specified terms and revenue-sharing arrangements.
Which concept describes the practice of setting aside funds annually to replace major assets at the end of their useful life?
Answer: Capital replacement reserve funding
Capital replacement reserves are funds accumulated over time to pay for major asset replacements, avoiding large unplanned expenditures when assets wear out.