CGFO Grant Management & Federal Compliance 2

Question 1

What is the primary distinction between a federal grant and a cooperative agreement?

Accepted Answer

Cooperative agreements involve substantial federal agency involvement in carrying out the program activity

Answer

Grants are for capital projects while cooperative agreements are exclusively for operational programs

Answer

Grants require a single audit while cooperative agreements are exempt from audit requirements

Answer

Cooperative agreements have higher minimum funding thresholds than grants

Question 2

In federal grant management, what is 'carryover' of unobligated balances?

Accepted Answer

The continuation of unspent federal grant funds from one budget period into the next period

Answer

The process of transferring funds between approved budget line items within the same period

Answer

The return of unused grant funds to the federal awarding agency at closeout

Answer

The reallocation of indirect cost pool balances to direct cost programs

Question 3

Under 2 CFR Part 200, how must program income earned during the period of performance generally be treated using the default method?

Accepted Answer

Added to funds committed to the project and used for additional allowable program costs

Answer

Returned immediately to the federal awarding agency upon receipt

Answer

Used to reduce the total federal award amount on a dollar-for-dollar basis

Answer

Deposited into a separate interest-bearing escrow account

Question 4

Which of the following is NOT a typical activity performed during the federal grant closeout process?

Accepted Answer

Requesting an extension of the period of performance for additional time

Answer

Submitting final financial and performance reports to the awarding agency

Answer

Returning any remaining unobligated balances to the federal agency

Answer

Completing final subrecipient monitoring and resolving open findings

Question 5

What is the de minimis indirect cost rate available under 2 CFR Part 200 to organizations that have never had a federally negotiated indirect cost rate?

Accepted Answer

10% of modified total direct costs (MTDC)

Answer

5% of modified total direct costs (MTDC)

Answer

15% of total direct costs

Answer

8% of total program expenditures

Question 6

In a single audit, what are 'questioned costs'?

Accepted Answer

Costs that an auditor has questioned due to potential noncompliance or insufficient documentation

Answer

Costs that exceed the amounts approved in the original grant budget

Answer

Costs submitted for reimbursement that have not yet received agency approval

Answer

Costs incurred after the expiration of the period of performance

Question 7

Under 2 CFR Part 200, what is a 'material weakness' in the context of internal control over federal program compliance?

Accepted Answer

A deficiency where there is a reasonable possibility that material noncompliance will not be prevented or detected on a timely basis

Answer

A deficiency in internal control that is less severe than a significant deficiency

Answer

Any audit finding that results in questioned costs above the materiality threshold

Answer

A violation that automatically results in suspension or debarment from federal funding