CRA Financial Management & Budgeting 3

Question 1

What does the term 'carryover' mean in the context of federal grant management?

Accepted Answer

Spending unobligated balances from one budget period in a subsequent budget period

Answer

Carryover refers to the authorized use of unobligated funds remaining at the end of one budget period in a subsequent budget period.

Question 2

Under 2 CFR 200, which of the following is a characteristic of an allowable cost?

Accepted Answer

It must be allocable, reasonable, consistent with institutional policies, and conform to award terms

Answer

Uniform Guidance establishes that allowable costs must be necessary, reasonable, allocable, consistent with institutional policies, and conform to applicable award terms.

Question 3

A subrecipient under a federal pass-through award is BEST described as:

Accepted Answer

An entity that receives a subaward to carry out part of a federal program's substantive scope of work

Answer

A subrecipient is an entity receiving a subaward to perform substantive programmatic work under the federal award, as distinguished from a contractor/vendor.

Question 4

What is the primary purpose of effort reporting in federally sponsored research?

Accepted Answer

To certify that the proportion of effort charged to a grant matches the actual effort expended

Answer

Effort reporting certifies that salaries charged to federal awards correspond to the actual proportional effort devoted to those projects.

Question 5

When must an institution obtain prior approval before incurring pre-award costs on a federal grant?

Accepted Answer

When required by the terms of the award or the federal agency's regulations

Answer

Pre-award costs may be incurred up to 90 days before the award when the non-federal entity accepts full financial responsibility, but some agencies require prior approval per their specific terms.

(CRA) Certified Research Administrator Practice Test

(CRA) Certified Research Administrator Practice Test

CRA Financial Management & Budgeting 3