CGA Grant Program Management 3 — Questions and Answers
Question 1: Which of the following best describes 'program income' in the context of federal grant management?
- Funds received from the federal grantor as an advance
- Gross income earned by a recipient that is directly generated by a federally supported activity (Correct answer)
- In-kind contributions from community partners
- Interest earned on an endowment unrelated to the grant
Correct answer: Gross income earned by a recipient that is directly generated by a federally supported activity
Program income is gross income earned by a non-federal entity that is directly generated by a supported activity or earned only as a result of the federal award during the period of performance.
Question 2: Under the 'additive' method for program income, how must the income be treated?
- It must be returned to the federal awarding agency
- It is added to the federal award and used to further the objectives of the project (Correct answer)
- It is used to offset federal expenditures, reducing draws
- It is deposited into a reserve account for future projects
Correct answer: It is added to the federal award and used to further the objectives of the project
Under the additive method, program income is added to the award funds and used to expand the scope or number of beneficiaries of the project.
Question 3: A grantee's employee spends 40% of their time on a federal grant and 60% on other activities. How should their salary be charged to the grant?
- 100% to the grant since the employee works on grant activities
- 40% to the grant, based on the actual proportion of time spent on grant activities (Correct answer)
- 50% to the grant using a standard split allocation
- Only the hours worked beyond 40 per week can be charged to the grant
Correct answer: 40% to the grant, based on the actual proportion of time spent on grant activities
Personnel costs must be charged based on actual effort; the employee's salary should be allocated proportionally to reflect the 40% of time devoted to the grant project.
Question 4: What is the primary purpose of a grant closeout process?
- To negotiate a new grant award with the same agency
- To ensure all administrative, programmatic, and financial actions required by the grant are completed and final reports submitted (Correct answer)
- To audit the grantee's internal controls for the first time
- To transfer grant funds to a successor organization
Correct answer: To ensure all administrative, programmatic, and financial actions required by the grant are completed and final reports submitted
Grant closeout ensures all obligations are met, final financial and performance reports are submitted, and any unobligated balances are returned or accounted for.
Question 5: A grant administrator discovers a potential fraud scheme by a subrecipient. What is the appropriate course of action?
- Handle the matter internally without involving the grantor to protect the relationship
- Report the suspected fraud to the federal awarding agency and, if required, to the Office of Inspector General (OIG) (Correct answer)
- Immediately terminate the subrecipient and hire a replacement before notifying anyone
- Wait until the next scheduled monitoring visit to raise the issue
Correct answer: Report the suspected fraud to the federal awarding agency and, if required, to the Office of Inspector General (OIG)
Suspected fraud, waste, or abuse must be reported to the federal awarding agency and potentially the OIG; pass-through entities have a responsibility to report such concerns promptly.
Question 6: Which element is NOT typically included in a grant program performance report?
- Progress toward performance goals and milestones
- A comparison of actual accomplishments to intended objectives
- Detailed personal tax records of program staff (Correct answer)
- Reasons why goals were not met and corrective actions planned
Correct answer: Detailed personal tax records of program staff
Performance reports focus on program outcomes, milestone progress, and explanations for variances — personal tax records of staff are not a required or appropriate element.
Question 7: Under 2 CFR Part 200, how long must a non-federal entity generally retain grant records after the final expenditure report is submitted?
- 3 years (Correct answer)
- 5 years
- 7 years
- 10 years
Correct answer: 3 years
Under 2 CFR §200.334, financial records, supporting documents, and other records must be retained for a period of three years from the date of submission of the final expenditure report.
CGA Grant Program Management 3
Which of the following best describes 'program income' in the context of federal grant management?