CGA Financial Management & Reporting 5

Question 1

A subrecipient receives $400,000 in federal pass-through funds. The pass-through entity is responsible for:

Accepted Answer

Monitoring the subrecipient's use of federal funds and ensuring compliance

Answer

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.

Question 2

Which of the following is NOT a characteristic of a cost that is 'reasonable' under 2 CFR Part 200?

Accepted Answer

The cost has been approved in advance by the awarding agency for all purchases

Answer

Reasonableness is based on a prudent person standard and market pricing, not on advance agency approval for every purchase.

Question 3

When must a federal grantee report a suspected fraud related to a federal award?

Accepted Answer

Immediately upon suspicion, to the agency's Office of Inspector General (OIG)

Answer

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.

Question 4

A grantee charges the same $3,000 printer purchase to both a federal grant and a private foundation grant. This is an example of:

Accepted Answer

Double billing / duplicate charging, which is prohibited

Answer

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.

Question 5

What is the primary distinction between a 'subrecipient' and a 'contractor' under 2 CFR Part 200?

Accepted Answer

Subrecipients carry out program objectives and are subject to federal compliance requirements; contractors provide goods/services for the entity's own use

Answer

Per 2 CFR §200.331, subrecipients implement program objectives and bear compliance requirements, while contractors provide goods/services to support the entity itself.

(CGA) Certified Grant Administrator Practice Test

(CGA) Certified Grant Administrator Practice Test

CGA Financial Management & Reporting 5