CPI Project Management & Funding 2 — Questions and Answers
Question 1: A PI needs to purchase equipment costing $6,000 using federal grant funds. Which cost category does this item most likely fall under according to federal guidelines?
- Direct cost — supplies (Correct answer)
- Capital equipment requiring prior approval
- Indirect cost
- Unallowable expenditure
Correct answer: Direct cost — supplies
Under federal guidelines (2 CFR 200), equipment is defined as items costing $5,000 or more; items below that threshold are typically classified as supplies under direct costs.
Question 2: An NIH-funded PI wants to rebudget 30% of the total award from personnel to equipment. What action is required?
- No action needed; rebudgeting is always at PI discretion
- Submit a prior approval request to NIH (Correct answer)
- Notify the IRB within 30 days
- File an amended budget with the finance office only
Correct answer: Submit a prior approval request to NIH
NIH requires prior approval when rebudgeting exceeds 25% of the total award, as this is considered a significant budget revision.
Question 3: Which document outlines the percentage of time a PI and key personnel commit to an NIH-funded project?
- Budget justification (Correct answer)
- Data management plan
- Notice of Award
- Research Performance Progress Report (RPPR)
Correct answer: Budget justification
The budget justification details each person's effort as a percentage of their total work time (person-months) committed to the project.
Question 4: A PI's grant year ends in 60 days and funds remain unspent due to a site delay. What is the most appropriate first step?
- Return all unspent funds to the sponsor immediately
- Request a no-cost extension from the sponsor (Correct answer)
- Transfer funds to another active grant
- Accelerate spending on unrelated project needs
Correct answer: Request a no-cost extension from the sponsor
A no-cost extension allows the PI to continue the project beyond the original end date without additional funds, resolving delays due to legitimate circumstances.
Question 5: Under 2 CFR 200, which of the following costs is explicitly unallowable on a federal grant?
- Publication fees for open-access journals
- Alcoholic beverages for a project-related dinner (Correct answer)
- Graduate student tuition remission
- Consultant fees with a signed agreement
Correct answer: Alcoholic beverages for a project-related dinner
2 CFR 200.423 explicitly lists alcoholic beverages as unallowable costs on federal awards.
Question 6: A PI submitting an NSF proposal must include a data management plan. What is the typical page limit for this section?
- 1 page
- 2 pages (Correct answer)
- 5 pages
- No limit — it is a supplementary document
Correct answer: 2 pages
NSF requires a Data Management Plan of no more than 2 pages as a mandatory supplementary document in grant proposals.
Question 7: Facilities and Administrative (F&A) costs are recovered by the institution to cover which type of expenses?
- Salaries for the PI and co-investigators
- Overhead costs such as building maintenance and utilities (Correct answer)
- Travel costs for conference presentations
- Costs for research supplies purchased during the award period
Correct answer: Overhead costs such as building maintenance and utilities
F&A (indirect) costs reimburse the institution for overhead expenses like building use, utilities, and administrative support that support sponsored research.
CPI Project Management & Funding 2
A PI needs to purchase equipment costing $6,000 using federal grant funds.
Which cost category does this item most likely fall under according to federal guidelines?