CGA Financial Management & Reporting 3

Question 1

A grantee discovers a $5,000 overcharge on a federal grant after the grant period ends. What is the correct action?

Accepted Answer

Notify the awarding agency and refund the overcharged amount

Answer

Grantees must refund any overcharges to the federal awarding agency and disclose the error, even after the grant period closes.

Question 2

Under the cost principles in 2 CFR Part 200, which test must ALL costs meet to be allowable?

Accepted Answer

Allowable, allocable, reasonable, and consistently applied

Answer

Per 2 CFR §200.405, all costs charged to federal awards must be allowable, allocable, reasonable, and consistently applied across all programs.

Question 3

An organization charges 50% of the executive director's salary to a federal grant. This is an example of which allocation method?

Accepted Answer

Time and effort reporting

Answer

Charging a percentage of salary to a federal award based on documented time spent is time and effort reporting, required under 2 CFR §200.430.

Question 4

What is the primary purpose of a Financial Status Report (FSR) submitted to a federal awarding agency?

Accepted Answer

To document and report actual expenditures against the approved budget

Answer

An FSR (now often called an SF-425 Federal Financial Report) documents actual expenditures, unliquidated obligations, and federal cash drawn down versus the approved budget.

Question 5

Which of the following best describes 'indirect costs' in grant budgeting?

Accepted Answer

Costs incurred for common or joint objectives that cannot be specifically identified with a single award

Answer

Indirect costs are those incurred for common or joint objectives of an organization that cannot be readily identified with a specific project or activity.

(CGA) Certified Grant Administrator Practice Test

(CGA) Certified Grant Administrator Practice Test

CGA Financial Management & Reporting 3