CPRP COMPREHENSIVE EXAM 2026 QUESTIONS AND
SOLUTIONS RATED A+
✔✔True or False: Most dissatisfied people complain about their service - ✔✔False:
Most dissatisfied people do not complain, they simply quit using the service. Agencies
must be vigilant in seeking out and addressing complaints
✔✔Differential pricing - ✔✔Charging different customers different prices for the same
activity based on desirability of facility, location, prime or non-prime hours, customer
age or ability to pay
✔✔Fees and charges are routinely set to (4 reasons) - ✔✔1. Recover costs
2. Create new resources for other programs
3. Establish the value of a program
4. Influence behavior (late fees, replacement costs, promote use of non-peak time
facility rentals)
✔✔To have an effective dialog about budget needs, you must be able to do three
things: - ✔✔1. Have a thorough understanding of fees and charges
2. Develop a program budget
3. Justify expenditures (most important piece)
✔✔What are the three stages of creating a budget? - ✔✔1. Preparation
2. Adoption/authorization
3. Execution/implementation
✔✔What does it mean that the budget process is cyclical? - ✔✔New budgets are being
prepared as old ones are being executed
✔✔Revenue - ✔✔money coming into the organization. May vary by season, be
responsive to changes in operation, and subject to shifts in trends
✔✔Revenue comes from 5 different sources: - ✔✔1. Compulsory income (taxes)
2. Gratuitous income
3. Earned income
4. Contractual receipts
5. Investment income
✔✔What are the 5 types of taxes that agencies receive income from? - ✔✔1. Real
property taxes
2. Personal property taxes
3. Sales tax
4. Income tax
5. Excise taxes
,✔✔Real property taxes - ✔✔Tax assessed on land and anything that is built or growing
on it. Appraised by local assessor, generally 30-50% lower than fair market value.
✔✔Tax base - ✔✔total assessed value of all properties within the political jurisdiction
✔✔One dollar equals how many mills? - ✔✔1 dollar = 1,000 mills and is 1/1000 of the
assessed property value
✔✔Personal property taxes - ✔✔Tax household and business tangible property (cars,
furniture) and intangible property (stocks and bonds)
✔✔Excise taxes - ✔✔Imposed on a specific good or service.
Some are imposed to discourage production and consumption of these goods. Ex:
cigarettes, alcohol
May be used for specific purposes such as to fund convention and visitors bureaus or to
build or refurbish sports stadiums
✔✔Gratuitous income - ✔✔Income received without expectation of a return including
grants, gifts, donations, planning giving, and sponsorships
✔✔Earned income - ✔✔Income generated by fees and charges. Program fees,
admission fees, user fees, license and permit fees
✔✔Contractual receipts - ✔✔Agencies contract with private agencies to sell
merchandise or provide services for them. Ex: boat rentals, concessions, equipment
shops, instructors.
✔✔Investment income - ✔✔Derived from interest gained from investing agency funds
into investment instruments such as money markets, stocks, and mutual funds. Some
agencies will set up endowments from donations or bequests and use the interest from
the accounts to fund special projects
✔✔What is typically an agency's largest expenditure? - ✔✔Personnel
✔✔Object-classification budgeting system - ✔✔Grouping of expenditures on the basis
of goods or services purchased.
✔✔Cost-control center - ✔✔Any organizational unit that is administered by a staff
person who is responsible for the activities of that unit, including its budget. Ex: Swim
lessons, adult sports
✔✔Budget statements - ✔✔report of allocated and expended monies
, ✔✔Allocated monies - ✔✔money that has been budgeted and approved by the
governing body
✔✔Expended monies - ✔✔spent money
✔✔When obtaining a price quote, what does it mean to "stack the quote"? - ✔✔Select
businesses that they want to choose and a few others that are traditionally high-priced.
✔✔How can "stacking the quote" be avoided? - ✔✔By establishing a list of approved
suppliers from which to obtain quotes
✔✔Formal bid - ✔✔a phase in the bidding process in which a potential supplier states
the price it will charge a client for a project and details the terms of the project
✔✔Invitation for bid - ✔✔vendors submit a sealed bid based on advertising
specifications
✔✔Request for Proposal (RFP) - ✔✔negotiated contract for goods and services wit the
vendor, which details what they will do and at what cost
✔✔What are 5 typical items included in formal bids? - ✔✔1. The review process for the
quote/bid (including deadlines)
2. Specific services required by the agency
3. RFPs require a budget and source of funding
4. Contact names
5. A clause written into the specifications that allows the agency to reject all bids
✔✔What are the four main financial reports that allow employees to monitor budgets? -
✔✔1. Income statements
2. Cash flow statements
3. Balance sheets
4. Project or program reports
✔✔Income statements - ✔✔demonstrate the profitability of the facility or cost center
during a period of time (month, quarter, fiscal year).
Statement includes revenues, expenses, and net income
✔✔Cash-flow statements - ✔✔Depict whether cash flow is positive or negative (is
money coming in or going out?)
✔✔Balance sheets/Statements of financial position - ✔✔Assets = Liabilities + Equity
Shows what the agency owes and owns
SOLUTIONS RATED A+
✔✔True or False: Most dissatisfied people complain about their service - ✔✔False:
Most dissatisfied people do not complain, they simply quit using the service. Agencies
must be vigilant in seeking out and addressing complaints
✔✔Differential pricing - ✔✔Charging different customers different prices for the same
activity based on desirability of facility, location, prime or non-prime hours, customer
age or ability to pay
✔✔Fees and charges are routinely set to (4 reasons) - ✔✔1. Recover costs
2. Create new resources for other programs
3. Establish the value of a program
4. Influence behavior (late fees, replacement costs, promote use of non-peak time
facility rentals)
✔✔To have an effective dialog about budget needs, you must be able to do three
things: - ✔✔1. Have a thorough understanding of fees and charges
2. Develop a program budget
3. Justify expenditures (most important piece)
✔✔What are the three stages of creating a budget? - ✔✔1. Preparation
2. Adoption/authorization
3. Execution/implementation
✔✔What does it mean that the budget process is cyclical? - ✔✔New budgets are being
prepared as old ones are being executed
✔✔Revenue - ✔✔money coming into the organization. May vary by season, be
responsive to changes in operation, and subject to shifts in trends
✔✔Revenue comes from 5 different sources: - ✔✔1. Compulsory income (taxes)
2. Gratuitous income
3. Earned income
4. Contractual receipts
5. Investment income
✔✔What are the 5 types of taxes that agencies receive income from? - ✔✔1. Real
property taxes
2. Personal property taxes
3. Sales tax
4. Income tax
5. Excise taxes
,✔✔Real property taxes - ✔✔Tax assessed on land and anything that is built or growing
on it. Appraised by local assessor, generally 30-50% lower than fair market value.
✔✔Tax base - ✔✔total assessed value of all properties within the political jurisdiction
✔✔One dollar equals how many mills? - ✔✔1 dollar = 1,000 mills and is 1/1000 of the
assessed property value
✔✔Personal property taxes - ✔✔Tax household and business tangible property (cars,
furniture) and intangible property (stocks and bonds)
✔✔Excise taxes - ✔✔Imposed on a specific good or service.
Some are imposed to discourage production and consumption of these goods. Ex:
cigarettes, alcohol
May be used for specific purposes such as to fund convention and visitors bureaus or to
build or refurbish sports stadiums
✔✔Gratuitous income - ✔✔Income received without expectation of a return including
grants, gifts, donations, planning giving, and sponsorships
✔✔Earned income - ✔✔Income generated by fees and charges. Program fees,
admission fees, user fees, license and permit fees
✔✔Contractual receipts - ✔✔Agencies contract with private agencies to sell
merchandise or provide services for them. Ex: boat rentals, concessions, equipment
shops, instructors.
✔✔Investment income - ✔✔Derived from interest gained from investing agency funds
into investment instruments such as money markets, stocks, and mutual funds. Some
agencies will set up endowments from donations or bequests and use the interest from
the accounts to fund special projects
✔✔What is typically an agency's largest expenditure? - ✔✔Personnel
✔✔Object-classification budgeting system - ✔✔Grouping of expenditures on the basis
of goods or services purchased.
✔✔Cost-control center - ✔✔Any organizational unit that is administered by a staff
person who is responsible for the activities of that unit, including its budget. Ex: Swim
lessons, adult sports
✔✔Budget statements - ✔✔report of allocated and expended monies
, ✔✔Allocated monies - ✔✔money that has been budgeted and approved by the
governing body
✔✔Expended monies - ✔✔spent money
✔✔When obtaining a price quote, what does it mean to "stack the quote"? - ✔✔Select
businesses that they want to choose and a few others that are traditionally high-priced.
✔✔How can "stacking the quote" be avoided? - ✔✔By establishing a list of approved
suppliers from which to obtain quotes
✔✔Formal bid - ✔✔a phase in the bidding process in which a potential supplier states
the price it will charge a client for a project and details the terms of the project
✔✔Invitation for bid - ✔✔vendors submit a sealed bid based on advertising
specifications
✔✔Request for Proposal (RFP) - ✔✔negotiated contract for goods and services wit the
vendor, which details what they will do and at what cost
✔✔What are 5 typical items included in formal bids? - ✔✔1. The review process for the
quote/bid (including deadlines)
2. Specific services required by the agency
3. RFPs require a budget and source of funding
4. Contact names
5. A clause written into the specifications that allows the agency to reject all bids
✔✔What are the four main financial reports that allow employees to monitor budgets? -
✔✔1. Income statements
2. Cash flow statements
3. Balance sheets
4. Project or program reports
✔✔Income statements - ✔✔demonstrate the profitability of the facility or cost center
during a period of time (month, quarter, fiscal year).
Statement includes revenues, expenses, and net income
✔✔Cash-flow statements - ✔✔Depict whether cash flow is positive or negative (is
money coming in or going out?)
✔✔Balance sheets/Statements of financial position - ✔✔Assets = Liabilities + Equity
Shows what the agency owes and owns
