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

Zero-based budgeting requires managers to justify every line item anew each cycle rather than simply adjusting previous allocations.

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

Enterprise funds account for operations that are intended to be self-supporting, such as golf courses or recreation centers that charge user fees.

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

Fixed costs such as facility rental or staff salaries do not change based on how many participants enroll in a program.

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

Reserve funds provide a financial buffer that allows agencies to manage emergencies or unexpected costs without cutting programs.

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

A matching grant requires the recipient to contribute a specified proportion of funds alongside the grant award.

(NRPA) National Recreation and Park Association Practice Test