CPH Program Management
Management focuses on... - correct answer ✔✔aligning and integrating internal organizational
operations to the organization's strategy, strategic plan, goals, and objectives in order to drive
performance excellence
Fiscal year - correct answer ✔✔the annual timeframe used for financial accounting purposes
Operational plan - correct answer ✔✔Organizations develop an operational plan for a given time horizon
the flows from their strategic plan, goals, and objectives
operational plans cascade down into subplans for departments
Budgets - correct answer ✔✔detailed financial plans comprising estimates of-
revenues or income- money generation by the activities of the operational plan or received from sources
such as grants
expenses or costs- money being expended on resources required to carry out the operational plan
budgeting- the process of estimating the coming year's costs and revenues
variance reports - correct answer ✔✔monthly budget reports that compare the budgeted revenues and
expenses with the actual revenues and expenses for each line item in the budget
positive variance- actual is better than budgeted
negative variance- actual is worse than budgeted
Revenue % variance = (actual revenues - budget revenues)/budget revenues
cost % variance = (budget costs - actual costs)/budget costs
, budget deficit, profit, and margin - correct answer ✔✔budget deficit- when revenues do not exceed or
meet expenses
profit- when revenues exceed expenses in a for-profit org
margin- when revenues exceed expenses in a non-profit org
margin = total revenues - total expenses
defending a budget - correct answer ✔✔Given limited time, money, people, or other resources, which
programs should receive funding?
Benchmarking- performance measurement process in which you find organizations that provide
programs or services similar to yours and compare their financial performance, processes, and outcomes
to yours
ROI- return on investment, financial ratio used to measure program efficiency
[(financial savings from program-cost of program)/cost of program] x100
The higher the ROI, the more financial benefit is accusing from the invested money
Economic evaluation- considers both costs (numerator) and outcomes of the program (denominator)
Includes cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis
line item - correct answer ✔✔each category of revenues or expenses has its own separate line in a
budget
restricted revenues - correct answer ✔✔restricted revenues obtained through grants or contracts should
be used just for those specified purposes
direct vs. indirect/overhead costs - correct answer ✔✔direct costs- costs that would not be incurred and
longer if a program were to disappear because the resources generating those costs would not longer be
needed
Management focuses on... - correct answer ✔✔aligning and integrating internal organizational
operations to the organization's strategy, strategic plan, goals, and objectives in order to drive
performance excellence
Fiscal year - correct answer ✔✔the annual timeframe used for financial accounting purposes
Operational plan - correct answer ✔✔Organizations develop an operational plan for a given time horizon
the flows from their strategic plan, goals, and objectives
operational plans cascade down into subplans for departments
Budgets - correct answer ✔✔detailed financial plans comprising estimates of-
revenues or income- money generation by the activities of the operational plan or received from sources
such as grants
expenses or costs- money being expended on resources required to carry out the operational plan
budgeting- the process of estimating the coming year's costs and revenues
variance reports - correct answer ✔✔monthly budget reports that compare the budgeted revenues and
expenses with the actual revenues and expenses for each line item in the budget
positive variance- actual is better than budgeted
negative variance- actual is worse than budgeted
Revenue % variance = (actual revenues - budget revenues)/budget revenues
cost % variance = (budget costs - actual costs)/budget costs
, budget deficit, profit, and margin - correct answer ✔✔budget deficit- when revenues do not exceed or
meet expenses
profit- when revenues exceed expenses in a for-profit org
margin- when revenues exceed expenses in a non-profit org
margin = total revenues - total expenses
defending a budget - correct answer ✔✔Given limited time, money, people, or other resources, which
programs should receive funding?
Benchmarking- performance measurement process in which you find organizations that provide
programs or services similar to yours and compare their financial performance, processes, and outcomes
to yours
ROI- return on investment, financial ratio used to measure program efficiency
[(financial savings from program-cost of program)/cost of program] x100
The higher the ROI, the more financial benefit is accusing from the invested money
Economic evaluation- considers both costs (numerator) and outcomes of the program (denominator)
Includes cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis
line item - correct answer ✔✔each category of revenues or expenses has its own separate line in a
budget
restricted revenues - correct answer ✔✔restricted revenues obtained through grants or contracts should
be used just for those specified purposes
direct vs. indirect/overhead costs - correct answer ✔✔direct costs- costs that would not be incurred and
longer if a program were to disappear because the resources generating those costs would not longer be
needed
