Financial Management & Reporting Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management & Reporting flashcards as text
A subrecipient receives $400,000 in federal pass-through funds. The pass-through entity is responsible for:
Answer: Monitoring the subrecipient's use of federal funds and ensuring compliance
Per 2 CFR §200.332, pass-through entities must monitor subrecipients' activities to ensure federal awards are used for authorized purposes and in compliance with requirements.
Which of the following is NOT a characteristic of a cost that is 'reasonable' under 2 CFR Part 200?
Answer: The cost has been approved in advance by the awarding agency for all purchases
Reasonableness is based on a prudent person standard and market pricing, not on advance agency approval for every purchase.
When must a federal grantee report a suspected fraud related to a federal award?
Answer: Immediately upon suspicion, to the agency's Office of Inspector General (OIG)
Suspected fraud, waste, or abuse involving federal funds must be reported promptly to the relevant federal agency's OIG, regardless of whether internal investigation is complete.
A grantee charges the same $3,000 printer purchase to both a federal grant and a private foundation grant. This is an example of:
Answer: Double billing / duplicate charging, which is prohibited
Charging the same cost to two or more funding sources for the same item is double billing, which is prohibited under 2 CFR §200.403 and constitutes fraud.
What is the primary distinction between a 'subrecipient' and a 'contractor' under 2 CFR Part 200?
Answer: Subrecipients carry out program objectives and are subject to federal compliance requirements; contractors provide goods/services for the entity's own use
Per 2 CFR §200.331, subrecipients implement program objectives and bear compliance requirements, while contractors provide goods/services to support the entity itself.
Under federal cash management rules, a grantee that draws down funds in advance must disburse those funds within how many days?
Answer: 7 calendar days
2 CFR §200.305(b)(3) requires grantees to minimize the time between drawing down federal cash and disbursing it, limiting advance draws to needs within three to seven days.
A 'cost transfer' in grant accounting refers to:
Answer: Reallocating a cost from one grant or account to another after it has been initially recorded
A cost transfer moves an expenditure already recorded under one grant or account to another grant or account, requiring justification and documentation to be allowable.