Certified Nonprofit Professional Practice Exam

Monitoring income and expenses is crucial for which aspect of a program director's responsibilities?

1. Evaluating program coverage

2. Strategic planning

3. Budget management

4. Volunteer management

The correct answer is: Budget management

Monitoring income and expenses is essential for effective budget management, which is a core responsibility of a program director. Budget management involves overseeing the financial resources of a program to ensure that it operates within its financial means and achieves its objectives. By closely monitoring income and expenses, the program director can identify any financial discrepancies, assess whether the program is on track to meet its financial goals, and make informed decisions about future spending or resource allocation. This financial oversight allows the program director to ensure that the necessary funding is available to implement program activities, maintain services, and address any unexpected costs that may arise. Effective budget management ultimately supports the sustainability and success of the program, making it a critical area of focus for program directors.