Administration & Finance Flashcards
7 cards from real CPRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Administration & Finance flashcards as text
A park agency receives a federal grant requiring a 25% local match. If the grant award is $200,000, the required local contribution is:
Answer: $66,667
A 25% local match means the agency must contribute 25% of the total project cost; if $200,000 is 75% of the total, the local share is $200,000 × (25/75) = $66,667.
Which internal control procedure best prevents fraudulent disbursements in a parks agency?
Answer: Separation of duties between authorization, custody, and recordkeeping
Separating duties so no single employee controls all steps of a transaction is the most effective deterrent to fraudulent disbursements.
A parks director is preparing a cost-benefit analysis for a new recreation center. Which costs should be included as indirect costs?
Answer: Administrative overhead, utilities, and depreciation
Indirect costs are those not directly tied to delivering a specific program, such as shared administrative overhead, building utilities, and asset depreciation.
The Governmental Accounting Standards Board (GASB) requires park agencies to report pension liabilities because:
Answer: It provides a complete picture of long-term financial obligations
GASB 68 requires reporting the net pension liability on government-wide financial statements to fully disclose long-term obligations to employees.
Which document formally authorizes a parks agency to collect revenues and make expenditures for a fiscal year?
Answer: Appropriations ordinance or resolution
An appropriations ordinance or resolution passed by the governing board is the legal authorization for the agency to spend money and collect revenues.
A parks agency wants to reduce dependency on tax revenues. Which alternative financing strategy involves private investment in exchange for naming rights?
Answer: Corporate sponsorship and partnership
Corporate sponsorships exchange facility naming rights, signage, or promotional opportunities for private funding contributions.
When evaluating a capital project's financial feasibility, a net present value (NPV) of positive $150,000 indicates:
Answer: The project is expected to generate value exceeding its cost in today's dollars
A positive NPV means the present value of future cash flows exceeds the initial investment, indicating the project creates financial value.