Financial Management and Budgeting Flashcards
6 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 6 Financial Management and Budgeting flashcards as text
What is the primary purpose of a capital improvement plan (CIP) in parks and recreation?
Answer: To schedule and fund long-term infrastructure projects
A capital improvement plan identifies, schedules, and funds major long-term infrastructure and facility projects over a multi-year period.
Which budget format presents expenditures by organizational unit and object class?
Answer: Line-item budget
A line-item budget organizes expenditures by department and specific object classes such as salaries, supplies, and equipment.
What does a variance report compare?
Answer: Actual expenditures against budgeted amounts
A variance report compares actual financial results to the budgeted figures, highlighting differences (variances) that require management attention.
Which funding mechanism allows parks agencies to retain and reinvest revenue from specific facilities?
Answer: Enterprise fund
Enterprise funds are self-supporting funds where revenues from a specific facility or service are retained and used to operate that facility.
What is the break-even point in recreation programming?
Answer: When total revenue equals total costs
The break-even point is where total program revenue equals total program costs, resulting in neither profit nor loss.
Which cost type changes in direct proportion to the number of program participants?
Answer: Variable cost
Variable costs increase or decrease based on the number of participants or units of service provided.