CNE Grant Management & Compliance 3

Question 1

Which federal threshold triggers a Single Audit requirement for a nonprofit organization?

Accepted Answer

Expending $750,000 or more in federal awards in a fiscal year

Answer

Under 2 CFR Part 200 Subpart F, nonprofits that expend $750,000 or more in federal awards in a fiscal year must have a Single Audit conducted.

Question 2

In grant management, what does the term 'matching requirement' mean?

Accepted Answer

The grantee must contribute a specified portion of project costs from non-federal sources

Answer

A matching requirement obligates the grantee to contribute a defined percentage or dollar amount of non-federal resources toward the total project cost.

Question 3

What is 'scope creep' in the context of grant compliance?

Accepted Answer

Gradual expansion of program activities beyond what the grant agreement authorizes

Answer

Scope creep occurs when activities expand beyond the approved grant scope without a formal amendment, creating a compliance risk.

Question 4

A program officer discovers that grant funds were used to purchase equipment not listed in the approved budget. What is the most appropriate immediate step?

Accepted Answer

Notify the awarding agency and seek retroactive approval or return funds

Answer

Unapproved equipment purchases must be disclosed to the awarding agency; retroactive approval may be possible or funds must be returned.

Question 5

Which record retention period does Uniform Guidance typically require for federal grant financial records?

Accepted Answer

Three years from the date of submission of the final expenditure report

Answer

Under 2 CFR §200.334, grantees must retain financial records for three years from the submission of the final expenditure report.

(CNE) Certified Nonprofit Executive Practice Test

(CNE) Certified Nonprofit Executive Practice Test

CNE Grant Management & Compliance 3