Budgeting & Financial Management Flashcards
7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budgeting & Financial Management flashcards as text
A correctional agency is considering outsourcing food service operations to reduce costs. Before proceeding, the executive should FIRST:
Answer: Conduct a make-or-buy cost comparison analysis
A make-or-buy analysis compares the true fully-loaded cost of in-house operations against contracted services, including hidden costs like contract management and transition expenses.
In government accounting, the 'modified accrual basis' used in corrections budgeting recognizes revenues when:
Answer: They are both available and measurable
Modified accrual accounting recognizes revenues when they are measurable and available to finance current-period expenditures, typically within 60 days of fiscal year end.
A correctional executive wants to use savings from reduced overtime to fund a new reentry program. This transfer is MOST likely subject to:
Answer: Legislative or budget office approval if the transfer crosses appropriation categories
Transferring funds between appropriation categories typically requires legislative or central budget office authorization, as appropriations represent legally binding spending limits.
Which risk is MOST associated with a correctional agency becoming overly dependent on federal grants for core operating expenses?
Answer: Funding discontinuity when grants expire can disrupt essential services
When core operations are funded by time-limited federal grants, expiration of those grants can create sudden funding gaps that disrupt programs and require emergency budget action.
A correctional facility's energy costs have increased significantly. Which financial management strategy would BEST address this long-term?
Answer: Implement an energy audit and capital investment in efficiency upgrades with ROI analysis
An energy audit identifies specific inefficiencies, and capital investments with a positive return on investment reduce long-term operational costs more effectively than recurring supplemental requests.
When a corrections budget uses 'activity-based costing,' the primary benefit is:
Answer: Identifying the true cost of specific activities such as classification or medical intake
Activity-based costing traces expenses to specific activities rather than departments, revealing true program costs and helping managers identify inefficiencies.
A correctional agency's external auditor issues a 'qualified opinion' on the agency's financial statements. This means:
Answer: The auditor found material misstatements or scope limitations in specific areas
A qualified opinion indicates the financial statements are fairly presented except for specific identified issues, which is more serious than an unqualified (clean) opinion.