CRA Financial Management & Budgeting 2

Question 1

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?

Accepted Answer

When the reallocation exceeds 10% of the total award

Answer

Under 2 CFR 200.308, prior agency approval is required when rebudgeting between direct cost categories exceeds 10% of the total award amount.

Question 2

Which of the following costs is typically unallowable under federal grants per 2 CFR 200?

Accepted Answer

Alcoholic beverages purchased for a faculty recruitment dinner

Answer

2 CFR 200.423 explicitly lists alcoholic beverages as an unallowable cost under federal awards.

Question 3

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?

Accepted Answer

$104,000

Answer

MTDC excludes equipment, so F&A is calculated on $200,000 only: $200,000 × 52% = $104,000.

Question 4

What is the purpose of a budget justification in a federal grant proposal?

Accepted Answer

To explain why each line item is necessary and how costs were calculated

Answer

A budget justification provides narrative explanation for each cost item, demonstrating necessity and explaining the methodology for cost calculation.

Question 5

Under the concept of 'cost sharing,' what is the distinction between mandatory and voluntary committed cost sharing?

Accepted Answer

Mandatory is required by the sponsor; voluntary committed is offered by the institution beyond requirements

Answer

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.

(CRA) Certified Research Administrator Practice Test

(CRA) Certified Research Administrator Practice Test

CRA Financial Management & Budgeting 2