CNE Grant Management & Compliance 2

Question 1

A nonprofit receives a federal grant with a period of performance ending June 30. Unspent funds must be returned unless the organization does what?

Accepted Answer

Requests a no-cost extension before the end date

Answer

A no-cost extension must be requested and approved before the period of performance ends to retain unspent federal grant funds.

Question 2

Under Uniform Guidance (2 CFR Part 200), which cost principle determines whether a grant expense is allowable?

Accepted Answer

The cost must be necessary, reasonable, allocable, and consistently treated

Answer

Uniform Guidance requires costs to be necessary, reasonable, allocable to the federal award, and consistently treated across cost categories.

Question 3

When a grantee organization discovers a financial error in a previously submitted federal financial report, what is the required action?

Accepted Answer

Submit a corrected report to the awarding agency promptly

Answer

Grantees must promptly submit corrected financial reports and notify the awarding agency when errors are discovered in previously submitted reports.

Question 4

Which document governs the specific terms, conditions, and obligations of a federal grant award?

Accepted Answer

The Notice of Award (NOA)

Answer

The Notice of Award is the legally binding document that sets forth the terms, conditions, and amount of a federal grant.

Question 5

A nonprofit's indirect cost rate has expired. What is the proper approach for charging indirect costs to an active federal grant?

Accepted Answer

Apply the de minimis rate of 10% of MTDC without negotiation

Answer

Organizations without a negotiated rate may use the de minimis rate of 10% of modified total direct costs (MTDC) under 2 CFR §200.414(f).

(CNE) Certified Nonprofit Executive Practice Test