NRPA Financial Management & Budgeting Flashcards

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

Answer: Program-based budget

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

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

Answer: Statement of net position

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

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

Answer: The percentage of program costs covered by earned revenues

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

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

Answer: Capital improvement plan (CIP) funds

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

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

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

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

In government accounting, what is a 'fund' as used by parks and recreation departments?

Answer: A self-balancing set of accounts used to track specific activities or purposes

In governmental accounting, a fund is a fiscal and accounting entity with a self-balancing set of accounts used to record activities for specific purposes.