CPRP Administration & Finance 4

Question 1

A park agency receives a federal grant requiring a 25% local match. If the grant award is $200,000, the required local contribution is:

Accepted Answer

$66,667

Answer

A 25% local match means the agency must contribute 25% of the total project cost; if $200,000 is 75% of the total, the local share is $200,000 × (25/75) = $66,667.

Question 2

Which internal control procedure best prevents fraudulent disbursements in a parks agency?

Accepted Answer

Separation of duties between authorization, custody, and recordkeeping

Answer

Separating duties so no single employee controls all steps of a transaction is the most effective deterrent to fraudulent disbursements.

Question 3

A parks director is preparing a cost-benefit analysis for a new recreation center. Which costs should be included as indirect costs?

Accepted Answer

Administrative overhead, utilities, and depreciation

Answer

Indirect costs are those not directly tied to delivering a specific program, such as shared administrative overhead, building utilities, and asset depreciation.

Question 4

The Governmental Accounting Standards Board (GASB) requires park agencies to report pension liabilities because:

Accepted Answer

It provides a complete picture of long-term financial obligations

Answer

GASB 68 requires reporting the net pension liability on government-wide financial statements to fully disclose long-term obligations to employees.

Question 5

Which document formally authorizes a parks agency to collect revenues and make expenditures for a fiscal year?

Accepted Answer

Appropriations ordinance or resolution

Answer

An appropriations ordinance or resolution passed by the governing board is the legal authorization for the agency to spend money and collect revenues.

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Practice Test

CPRP Administration & Finance 4