Administration and Finance Flashcards

What is the purpose of an annual report for a parks and recreation agency?

Answer: To communicate accomplishments, financial status, and future plans to stakeholders

An annual report communicates the agency's programs, accomplishments, financial summary, and future plans to elected officials, community members, and other stakeholders.

Which financial management practice matches expenses to the period in which they are incurred?

Answer: Accrual accounting

Accrual accounting records revenues when earned and expenses when incurred, regardless of when cash changes hands, providing a more accurate picture of financial position.

What is the purpose of an audit committee in parks governance?

Answer: To provide oversight of financial reporting and internal controls

An audit committee provides independent oversight of financial reporting accuracy, internal controls, and the external audit process.

Which budget preparation approach requires managers to justify all expenditures from a zero base each year?

Answer: Zero-based budgeting

Zero-based budgeting requires every department to justify all expenditures from scratch each budget cycle rather than simply adjusting the prior year's budget.

What is the primary function of a parks and recreation advisory board?

Answer: To provide community input and recommendations on policies and programs

Advisory boards provide community representation, offer input on policies and program priorities, and help build community support for the parks system.

Which public sector accounting standard applies to state and local government financial reporting?

Answer: GASB (Governmental Accounting Standards Board)

GASB sets the accounting and financial reporting standards for state and local government entities in the United States.