NRPA NRPA Financial Management & Budgeting 1

Question 1

What type of budget allocates resources based on the specific activities and programs a parks department will deliver?

Accepted Answer

Program-based budget

Answer

A program-based budget organizes expenditures around specific programs and services rather than simply listing expense categories.

Question 2

Which financial document provides a summary of revenues, expenditures, and net position for a parks and recreation agency?

Accepted Answer

Statement of net position

Answer

The statement of net position (balance sheet) summarizes all assets, liabilities, and net position at a specific point in time.

Question 3

What is a cost recovery ratio in parks and recreation finance?

Accepted Answer

The percentage of program costs covered by earned revenues

Answer

Cost recovery ratio measures how much of a program's direct costs are offset by fees and other earned revenues.

Question 4

Which funding source is typically used in parks agencies to finance major infrastructure improvements like new facilities or renovations?

Accepted Answer

Capital improvement plan (CIP) funds

Answer

Capital improvement plan funds are specifically designated for large, long-term infrastructure investments rather than day-to-day operations.

Question 5

What is the purpose of a parks and recreation agency conducting a fee benchmarking study?

Accepted Answer

To compare program fees with those of comparable agencies in the region

Answer

Fee benchmarking allows agencies to set competitive and equitable fees by comparing their rates with similar organizations.

(NRPA) National Recreation and Park Association Practice Test