CPRP Financial Management and Budgeting 2

Question 1

What is the primary purpose of a capital improvement plan (CIP) in parks and recreation?

Accepted Answer

To schedule and fund long-term infrastructure projects

Answer

A capital improvement plan identifies, schedules, and funds major long-term infrastructure and facility projects over a multi-year period.

Question 2

Which budget format presents expenditures by organizational unit and object class?

Accepted Answer

Line-item budget

Answer

A line-item budget organizes expenditures by department and specific object classes such as salaries, supplies, and equipment.

Question 3

What does a variance report compare?

Accepted Answer

Actual expenditures against budgeted amounts

Answer

A variance report compares actual financial results to the budgeted figures, highlighting differences (variances) that require management attention.

Question 4

Which funding mechanism allows parks agencies to retain and reinvest revenue from specific facilities?

Accepted Answer

Enterprise fund

Answer

Enterprise funds are self-supporting funds where revenues from a specific facility or service are retained and used to operate that facility.

Question 5

What is the break-even point in recreation programming?

Accepted Answer

When total revenue equals total costs

Answer

The break-even point is where total program revenue equals total program costs, resulting in neither profit nor loss.

CPRP - Certified Park and Recreation Professional Practice Test