CPRP Administration and Finance 5

Question 1

A parks agency receives a federal grant restricted to trail development. How should these funds be classified?

Accepted Answer

Restricted revenue that may only be spent for the designated purpose

Answer

Grant funds with specified purposes must be accounted for as restricted revenue and expended only for the allowable uses defined by the grantor.

Question 2

Which pricing strategy sets recreation fees based on what the market will bear rather than on actual program costs?

Accepted Answer

Market-rate pricing

Answer

Market-rate pricing sets fees based on comparable offerings in the marketplace, which may be above or below actual program costs.

Question 3

What is the primary purpose of a comprehensive annual financial report (CAFR) for a park district?

Accepted Answer

To provide a complete audited financial disclosure to stakeholders and the public

Answer

A CAFR (now often called an Annual Comprehensive Financial Report, ACFR) provides audited financial statements and full disclosure required for governmental transparency.

Question 4

Which type of audit is conducted to assess whether an agency's programs are achieving their intended outcomes efficiently?

Accepted Answer

Performance audit

Answer

A performance audit evaluates the effectiveness, efficiency, and economy of government programs rather than just the accuracy of financial statements.

Question 5

A park agency's long-term capital improvement plan (CIP) typically covers what time horizon?

Accepted Answer

Three to ten years

Answer

Capital improvement plans typically project major infrastructure needs, costs, and funding sources over a three- to ten-year planning horizon.

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Practice Test

CPRP Administration and Finance 5