CGA Financial Management & Reporting 2

Question 1

Under 2 CFR Part 200, what is the threshold for a non-federal entity to require a Single Audit?

Accepted Answer

$750,000 in federal expenditures

Answer

2 CFR §200.501 requires a Single Audit when a non-federal entity expends $750,000 or more in federal awards during a fiscal year.

Question 2

Which financial statement shows the financial position of a grant recipient at a specific point in time?

Accepted Answer

Balance Sheet (Statement of Net Position)

Answer

The Balance Sheet or Statement of Net Position presents assets, liabilities, and net assets/equity as of a specific date.

Question 3

A grantee uses grant funds to purchase equipment and later sells it. Under 2 CFR Part 200, the proceeds from the sale must be:

Accepted Answer

Used to offset the cost of replacement equipment or returned to the federal program

Answer

Per 2 CFR §200.313, proceeds from equipment sales must either be used to offset replacement equipment costs or returned to the federal program.

Question 4

What is a 'program income' in the context of federal grant management?

Accepted Answer

Gross income earned by a non-federal entity that is directly generated by a supported activity

Answer

2 CFR §200.1 defines program income as gross income earned by a non-federal entity that is directly generated by a supported activity or earned as a result of the federal award.

Question 5

The 'additive' method for program income means the grantee must:

Accepted Answer

Add program income to the total budget, increasing the scope of work

Answer

Under the additive method, program income is added to the award funds, effectively expanding the scope or total budget of the project.

(CGA) Certified Grant Administrator Practice Test

(CGA) Certified Grant Administrator Practice Test

CGA Financial Management & Reporting 2