NRPA NRPA Financial Management & Budgeting 2

Question 1

Which approach to budgeting requires every expense to be justified from scratch each fiscal year rather than using the prior year as a baseline?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Performance budgeting

Answer

Object-based budgeting

Question 2

What is an enterprise fund in a public parks and recreation context?

Accepted Answer

A fund used for services that are primarily self-supporting through user fees

Answer

A fund reserved for capital projects only

Answer

A fund created by private donations to the agency

Answer

A grant fund restricted to environmental programs

Question 3

Which of the following best describes a fixed cost in parks and recreation programming?

Accepted Answer

A cost that remains constant regardless of the number of program participants

Answer

A cost that increases proportionally with enrollment

Answer

A cost tied directly to consumable supplies per participant

Answer

A cost that varies with seasonal demand

Question 4

What is the primary purpose of a parks and recreation agency establishing a reserve fund?

Accepted Answer

To cover unexpected expenses or revenue shortfalls without disrupting operations

Answer

To fund annual marketing campaigns

Answer

To pay end-of-year staff bonuses

Answer

To finance routine maintenance contracts

Question 5

Which grant type requires a parks agency to match a portion of awarded funds with its own resources?

Accepted Answer

Matching grant

Answer

Formula grant

Answer

Block grant

Answer

Categorical grant

Question 6

What does GASB stand for, and why is it relevant to parks and recreation agencies?

Accepted Answer

Governmental Accounting Standards Board; it sets financial reporting standards for public agencies

Answer

General Accounting and Standards Bureau; it audits federal grants

Answer

Government Agency Support Board; it funds recreation infrastructure

Answer

Grant Administration and Standards Bureau; it reviews park budgets