NRPA NRPA Financial Management & Budgeting

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

Line-item budget

Answer

Zero-based budget

Answer

Capital budget

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

Cash flow statement

Answer

Revenue forecast

Answer

Fund balance report

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

The ratio of capital to operating expenses

Answer

The proportion of budget funded by taxes

Answer

The share of overhead costs allocated to programs

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

General operating fund

Answer

Petty cash reserves

Answer

Grant administration funds

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

To determine total annual revenue projections

Answer

To calculate staff-to-participant ratios

Answer

To evaluate grant eligibility criteria

Question 6

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

Accepted Answer

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

Answer

The total annual budget appropriation

Answer

A restricted donation from a private source

Answer

A reserve account for emergency expenses