CERTIFIED PARKS AND RECREATION
PROFESSIONAL CPRP UPDATED
COMPREHENSIVE EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Purchase Requisition (PR) - ✔✔outlines the purchase and requires the proper
permission to make the purchase
✔✔What are the 5 steps in a typical purchasing process for items falling below the bid
threshold? - ✔✔1. Request a purchase requisition
2. Obtain quotes
3. Determine the means of purchasing (P.O., P-card, credit card etc)
4. Make the purchase and receive the goods
5. Submit receipt to purchasing/accounting dept.
✔✔What are the 3 steps to obtain a grant? - ✔✔1. Planning the project
2. Searching for funding opportunities
3. Writing and submitting grant proposal
✔✔What are 4 examples of Gifts, Donations, and Planned Giving? - ✔✔1. Wills
2. Life insurance policies with the Agency as the named beneficiary
3. Donations of land, stocks, and personal property
,4. Cash prior to or upon a person's death
✔✔Sponsorships - ✔✔Companies donate supplies, equipment, or stall time and skill.
Typically cash or in-kind services.
✔✔How do both the Agency and the Company benefit from a Sponsorship? - ✔✔The
Agency receives goods or services and the Company receives recognition or a
marketing benefit (media ads, logos at events, or access to participants).
✔✔What 4 things should a sponsorship proposal include? - ✔✔1. History of
event/property
2. Logistics
3. Benefits of the event
4. Establish sponsorship packages (title sponsor, presenting sponsor, official sponsor,
official supplier)
✔✔Title sponsor - ✔✔naming rights to event, often including first right of refusal for
other sponsors. Gives sponsor the largest amount of publicity for the event.
✔✔Presenting sponsor - ✔✔25-50% of the value of the title sponsor. Less publicity than
naming sponsor.
✔✔Official sponsor - ✔✔10% of the value of the title sponsor. Good for smaller
businesses that want benefits of being associated with the event
✔✔Official supplier - ✔✔less than 10% of the value of the title sponsor, most likely
providing goods and services
✔✔Cost-recovery analysis - ✔✔Determining what level of cost recovery (subsidization)
different programs must achieve. Programs will be earmarked to make a profit, break
even, or to be subsidized with other revenue streams.
✔✔Demand (for a program) - ✔✔The minimum and maximum enrollment for a program
of the projected number of participants at an event or a facility.
✔✔When establishing a price for the program, it is best to (under/over) estimate
demand and (under/over) estimate costs - ✔✔underestimate demand and overestimate
costs
✔✔Fixed costs - ✔✔do not change with the number of participants and remain constant
for the duration of a program (ex:room rental fee, instructor fee)
✔✔Direct fixed costs - ✔✔A result of conducting a specific program. If the program
didn't exist, the cost would not occur. Ex: hiring an instructor for paint night
, ✔✔Indirect fixed cost/overhead costs - ✔✔Administrative expenses, utilities,
maintenance, debt payment, etc. Costs incurred by the agency that are necessary but
not traceable to a single program.
✔✔Changing fixed costs - ✔✔Costs that change after a certain number of participants
are added. i.e. 2nd Life guard after 25 swimmers.
✔✔Variable costs - ✔✔costs that result from the actual operation of the program and
charge directly and proportionately to the number of people enrolled. Ex: participants
given a t-shirt, cost of t-shirt is a variable cost.
✔✔Formula for break even price - ✔✔P = (F + V) / N
P = Price
F = all fixed costs
V = variable costs
N = demand for program
✔✔Public services - ✔✔offered to the public at large and benefit the community as a
whole. Are 100% subsidized (no fees)
✔✔Name 3 examples of public services - ✔✔1. Parks
2. Trails
3. Playgrounds
✔✔Merit service - ✔✔has a partial cost recovery and partial subsidy.
✔✔Name an example of a merit service - ✔✔Teen after school program.
✔✔Private services - ✔✔for the benefit of the individual participating in the activity. Paid
for by the individual, may break even or make a profit.
✔✔Name an example of a private service - ✔✔A cooking class
✔✔Cost-recovery rate - ✔✔the percentage that the program will be either subsidized,
break even, or make a profit.
✔✔Once the cost-recovery rates are established, the final price of the program can be
set using what formula to find the subsidy rate? - ✔✔P = unit cost x (1-S), S = subsidy
rate
✔✔A negative subsidy means the program... - ✔✔Makes a profit
✔✔A 100% subsidy means the program... - ✔✔is free
PROFESSIONAL CPRP UPDATED
COMPREHENSIVE EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Purchase Requisition (PR) - ✔✔outlines the purchase and requires the proper
permission to make the purchase
✔✔What are the 5 steps in a typical purchasing process for items falling below the bid
threshold? - ✔✔1. Request a purchase requisition
2. Obtain quotes
3. Determine the means of purchasing (P.O., P-card, credit card etc)
4. Make the purchase and receive the goods
5. Submit receipt to purchasing/accounting dept.
✔✔What are the 3 steps to obtain a grant? - ✔✔1. Planning the project
2. Searching for funding opportunities
3. Writing and submitting grant proposal
✔✔What are 4 examples of Gifts, Donations, and Planned Giving? - ✔✔1. Wills
2. Life insurance policies with the Agency as the named beneficiary
3. Donations of land, stocks, and personal property
,4. Cash prior to or upon a person's death
✔✔Sponsorships - ✔✔Companies donate supplies, equipment, or stall time and skill.
Typically cash or in-kind services.
✔✔How do both the Agency and the Company benefit from a Sponsorship? - ✔✔The
Agency receives goods or services and the Company receives recognition or a
marketing benefit (media ads, logos at events, or access to participants).
✔✔What 4 things should a sponsorship proposal include? - ✔✔1. History of
event/property
2. Logistics
3. Benefits of the event
4. Establish sponsorship packages (title sponsor, presenting sponsor, official sponsor,
official supplier)
✔✔Title sponsor - ✔✔naming rights to event, often including first right of refusal for
other sponsors. Gives sponsor the largest amount of publicity for the event.
✔✔Presenting sponsor - ✔✔25-50% of the value of the title sponsor. Less publicity than
naming sponsor.
✔✔Official sponsor - ✔✔10% of the value of the title sponsor. Good for smaller
businesses that want benefits of being associated with the event
✔✔Official supplier - ✔✔less than 10% of the value of the title sponsor, most likely
providing goods and services
✔✔Cost-recovery analysis - ✔✔Determining what level of cost recovery (subsidization)
different programs must achieve. Programs will be earmarked to make a profit, break
even, or to be subsidized with other revenue streams.
✔✔Demand (for a program) - ✔✔The minimum and maximum enrollment for a program
of the projected number of participants at an event or a facility.
✔✔When establishing a price for the program, it is best to (under/over) estimate
demand and (under/over) estimate costs - ✔✔underestimate demand and overestimate
costs
✔✔Fixed costs - ✔✔do not change with the number of participants and remain constant
for the duration of a program (ex:room rental fee, instructor fee)
✔✔Direct fixed costs - ✔✔A result of conducting a specific program. If the program
didn't exist, the cost would not occur. Ex: hiring an instructor for paint night
, ✔✔Indirect fixed cost/overhead costs - ✔✔Administrative expenses, utilities,
maintenance, debt payment, etc. Costs incurred by the agency that are necessary but
not traceable to a single program.
✔✔Changing fixed costs - ✔✔Costs that change after a certain number of participants
are added. i.e. 2nd Life guard after 25 swimmers.
✔✔Variable costs - ✔✔costs that result from the actual operation of the program and
charge directly and proportionately to the number of people enrolled. Ex: participants
given a t-shirt, cost of t-shirt is a variable cost.
✔✔Formula for break even price - ✔✔P = (F + V) / N
P = Price
F = all fixed costs
V = variable costs
N = demand for program
✔✔Public services - ✔✔offered to the public at large and benefit the community as a
whole. Are 100% subsidized (no fees)
✔✔Name 3 examples of public services - ✔✔1. Parks
2. Trails
3. Playgrounds
✔✔Merit service - ✔✔has a partial cost recovery and partial subsidy.
✔✔Name an example of a merit service - ✔✔Teen after school program.
✔✔Private services - ✔✔for the benefit of the individual participating in the activity. Paid
for by the individual, may break even or make a profit.
✔✔Name an example of a private service - ✔✔A cooking class
✔✔Cost-recovery rate - ✔✔the percentage that the program will be either subsidized,
break even, or make a profit.
✔✔Once the cost-recovery rates are established, the final price of the program can be
set using what formula to find the subsidy rate? - ✔✔P = unit cost x (1-S), S = subsidy
rate
✔✔A negative subsidy means the program... - ✔✔Makes a profit
✔✔A 100% subsidy means the program... - ✔✔is free
