CGFO Grant Management & Federal Compliance 1 — Questions and Answers
Question 1: What federal regulation primarily governs the administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities?
- 2 CFR Part 200 (Uniform Guidance) (Correct answer)
- OMB Circular A-133
- 31 USC Section 1301
- GAO Yellow Book Standards
Correct answer: 2 CFR Part 200 (Uniform Guidance)
2 CFR Part 200, known as the Uniform Guidance, superseded multiple OMB circulars and is the primary regulation governing federal award management for non-federal entities.
Question 2: Under 2 CFR Part 200, what is the annual federal expenditure threshold that triggers a Single Audit requirement?
- $500,000 in federal expenditures
- $750,000 in federal expenditures (Correct answer)
- $1,000,000 in federal expenditures
- $250,000 in federal expenditures
Correct answer: $750,000 in federal expenditures
The Single Audit threshold is $750,000 in federal award expenditures in a fiscal year, as established by the Uniform Guidance when it replaced OMB Circular A-133.
Question 3: What is the primary purpose of the Schedule of Expenditures of Federal Awards (SEFA)?
- To request reimbursement from federal agencies
- To list all federal awards expended during the fiscal year for single audit purposes (Correct answer)
- To document indirect cost rate calculations
- To report program income earned from federal grants
Correct answer: To list all federal awards expended during the fiscal year for single audit purposes
The SEFA lists all federal awards expended by the entity during the fiscal year and is a required element of the single audit reporting package.
Question 4: Under Uniform Guidance, which of the following is NOT one of the basic criteria required for a cost to be allowable under a federal award?
- The cost must be reasonable
- The cost must be allocable to the award
- The cost must receive prior written approval from the federal agency (Correct answer)
- The cost must be consistently treated
Correct answer: The cost must receive prior written approval from the federal agency
Allowable costs must be reasonable, allocable, and consistently treated, but blanket prior federal agency approval is not a basic criterion — it is only required for specific designated cost types.
Question 5: In federal grant management, what does the term 'allocable cost' mean?
- A cost that benefits the federal award and can be assigned to it in reasonable proportion to the benefit received (Correct answer)
- A cost that has been explicitly approved in the grant budget narrative
- A cost that falls entirely within the period of performance
- A cost that does not exceed the established direct cost threshold
Correct answer: A cost that benefits the federal award and can be assigned to it in reasonable proportion to the benefit received
An allocable cost is one that benefits the federal award in proportion to the benefit received and can be assigned to that award on a reasonable, consistent basis.
Question 6: What is the 'period of performance' in the context of a federal grant award?
- The timeframe during which the grantee must submit all required financial reports
- The time period during which the recipient may incur new obligations to carry out authorized work (Correct answer)
- The duration of subrecipient monitoring obligations after award closeout
- The timeframe within which a single audit must be completed and submitted
Correct answer: The time period during which the recipient may incur new obligations to carry out authorized work
The period of performance is the time during which the non-federal entity may incur new obligations to carry out the work authorized under the federal award.
Question 7: Under 2 CFR Part 200, which of the following best describes a 'subrecipient'?
- A vendor that provides goods or services under a competitive contract to a federal grantee
- A non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal program (Correct answer)
- A federal agency that provides oversight and monitoring for grant compliance
- An independent auditor engaged to review federal expenditures under a single audit
Correct answer: A non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal program
A subrecipient is a non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal program and is responsible for programmatic decision-making.
CGFO Grant Management & Federal Compliance 1
What federal regulation primarily governs the administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities?