Financial Management & Budgeting Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management & Budgeting flashcards as text
A principal investigator requests to move $15,000 from personnel to equipment mid-project. Under Uniform Guidance, when is prior approval from the federal agency required for this rebudgeting?
Answer: When the reallocation exceeds 10% of the total award
Under 2 CFR 200.308, prior agency approval is required when rebudgeting between direct cost categories exceeds 10% of the total award amount.
Which of the following costs is typically unallowable under federal grants per 2 CFR 200?
Answer: Alcoholic beverages purchased for a faculty recruitment dinner
2 CFR 200.423 explicitly lists alcoholic beverages as an unallowable cost under federal awards.
A research institution's negotiated F&A rate is 52% MTDC. If a project has $200,000 in salaries and $30,000 in equipment, what is the F&A cost?
Answer: $104,000
MTDC excludes equipment, so F&A is calculated on $200,000 only: $200,000 × 52% = $104,000.
What is the purpose of a budget justification in a federal grant proposal?
Answer: To explain why each line item is necessary and how costs were calculated
A budget justification provides narrative explanation for each cost item, demonstrating necessity and explaining the methodology for cost calculation.
Under the concept of 'cost sharing,' what is the distinction between mandatory and voluntary committed cost sharing?
Answer: Mandatory is required by the sponsor; voluntary committed is offered by the institution beyond requirements
Mandatory cost sharing is required by the sponsor as a condition of the award, while voluntary committed cost sharing is offered by the grantee beyond what is required.
A no-cost extension (NCE) allows a grantee to:
Answer: Extend the performance period without additional federal funds to complete the work
A no-cost extension extends the performance period at no additional cost to the sponsor, allowing the grantee to complete the scope of work with existing funds.
Which financial report is typically required at the close of a federal grant to document expenditures?
Answer: SF-425 (Federal Financial Report)
The SF-425 Federal Financial Report is the standard form used to report expenditures at grant closeout and for interim financial reporting.