CRP Financial Management & Budgeting Flashcards
6 cards from real CRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRP Financial Management & Budgeting flashcards as text
Which budget type requires recreation managers to justify every line item from zero each fiscal year, regardless of prior spending?
Answer: Zero-based budgeting
Zero-based budgeting requires justification of every expenditure from scratch each year, eliminating automatic rollovers from prior budgets.
A recreation department's fee schedule should primarily be based on which combination of factors?
Answer: Cost recovery goals, market rates, and ability-to-pay considerations for the target population
Fee schedules should balance cost recovery targets, competitive market rates, and equity considerations to ensure access while sustaining programs.
What does a cost recovery ratio of 75% mean for a recreation program?
Answer: Program revenues cover 75% of direct program costs, with 25% subsidized by the department
A 75% cost recovery ratio means participant fees and program revenues cover 75% of direct costs, with the remaining 25% funded through tax support or subsidies.
Which financial document provides a snapshot of a recreation agency's assets, liabilities, and net position at a specific point in time?
Answer: Balance sheet (statement of net position)
A balance sheet or statement of net position presents assets, liabilities, and net position at a single point in time, reflecting the agency's financial health.
A recreation manager notices that program supply costs are consistently 15% over budget each quarter. What is the MOST appropriate first response?
Answer: Analyze purchasing patterns to identify causes and revise budget projections or procurement practices
Analyzing the root cause of consistent budget variances is essential before implementing corrective action to ensure the response addresses the actual problem.
Which cost is considered a fixed cost in recreation program budgeting?
Answer: Facility rental fee charged at a flat monthly rate
A flat monthly facility rental fee remains constant regardless of participation levels, making it a fixed cost in the program budget.