Which is a core responsibility of the LCPAA in relation to budget management?

• A. Prepare or supervise budgets and financial reports
• B. Approve all grant awards for unrelated agencies
• C. Establish fundraising campaigns for the state
• D. Draft tax returns for the agency

Answer: (A)

The main idea being tested is the responsibility for financial planning and oversight within licensed child-placing agencies. Preparing or supervising budgets and financial reports fits this role because it directly ensures fiscal accountability, proper use of funds, and compliance with regulations. By developing budgets, tracking income and expenditures, forecasting needs, and producing financial reports for the licensing authority, the administrator demonstrates oversight, transparency, and stewardship of resources that support safe and compliant agency operations.

The other options don’t align with the LCPAA’s typical duties: approving grant awards for unrelated agencies falls outside the scope of supervising a licensed agency’s finances; establishing fundraising campaigns for the state is not a function of managing a specific agency’s budget; drafting tax returns is usually handled by the agency’s accountants or tax professionals, not the licensing administrator.