CCAP - Certified Community Action Professional Nonprofit Financial Management Questions and Answers

Question 1

A Community Action Agency receives a significant federal grant.
According to the cost principles outlined in the OMB Uniform Guidance (2 CFR Part 200), for a cost to be allowable, it must be necessary, reasonable, allocable, and what else?

Accepted Answer

Treated consistently as either a direct or indirect cost.

Answer

Approved by the board of directors in the annual budget.

Answer

Incurred within the last quarter of the fiscal year.

Answer

The lowest possible price for the goods or service.

Question 2

The finance director of a Community Action Agency is preparing the key financial reports for the quarterly board meeting. Which financial statement provides a snapshot of the agency's assets, liabilities, and net assets at a specific point in time?

Accepted Answer

Statement of Financial Position

Answer

Statement of Activities

Answer

Statement of Functional Expenses

Answer

Statement of Cash Flows

Question 3

To reduce the risk of fraud and error, a fundamental internal control practice in nonprofit financial management is the segregation of duties. Which of the following scenarios best exemplifies this principle?

Accepted Answer

The employee who authorizes payments is different from the employee who writes and signs the checks.

Answer

The Executive Director is the only person authorized to sign checks to ensure tight control over disbursements.

Answer

The same employee who receives and opens mail containing checks also records the donations in the accounting system.

Answer

The board treasurer personally reconciles the monthly bank statements.

Question 4

A Community Action Agency's accountant needs to allocate the monthly rent expense across several different programs (e.g., Head Start, Weatherization, CSBG). According to federal cost principles, the methodology used for allocating this indirect cost must be:

Accepted Answer

Based on an equitable distribution that reflects the relative benefit received by each program.

Answer

Based on each program's total revenue.

Answer

Divided equally among all active programs.

Answer

Determined by the program manager with the largest budget.

Question 5

Which of the following financial documents is primarily focused on detailing an organization's spending across its major functional areas, such as program services, management and general, and fundraising?

Accepted Answer

Statement of Functional Expenses

Answer

Statement of Financial Position

Answer

Annual Budget

Answer

Statement of Cash Flows

Question 6

A Community Action Agency expends $800,000 in federal awards during its fiscal year from various federal agencies. This level of expenditure triggers what specific compliance requirement?

Accepted Answer

A Single Audit or a Program-Specific Audit.

Answer

A mandatory review by the Office of the Inspector General (OIG).

Answer

The submission of a detailed cost allocation plan to each federal funder.

Answer

An increase in the agency's indirect cost rate.

A Community Action Agency receives a significant federal grant.According to the cost principles outlined in the OMB Uniform Guidance (2 CFR Part 200), for a cost to be allowable, it must be necessary, reasonable, allocable, and what else?

A Community Action Agency receives a significant federal grant.
According to the cost principles outlined in the OMB Uniform Guidance (2 CFR Part 200), for a cost to be allowable, it must be necessary, reasonable, allocable, and what else?