CRA Financial Management of Sponsored Programs 2

Question 1

Which federal regulation governs cost principles for institutions of higher education receiving federal awards?

Accepted Answer

2 CFR Part 200 Subpart E

Answer

2 CFR Part 200 Subpart E (Uniform Guidance) consolidated and replaced OMB Circular A-21 and other older circulars governing cost principles for higher education.

Question 2

A university uses a federal grant to purchase a $6,000 laptop. Under Uniform Guidance, this item is classified as:

Accepted Answer

Supplies

Answer

Under 2 CFR Part 200, supplies are defined as items with a per-unit acquisition cost below the equipment threshold, which is $5,000 unless the institution has a higher threshold — but since $6,000 exceeds the federal $5,000 threshold, it would be equipment; however if the institution's capitalization threshold is higher, it may be treated as supplies — the standard federal threshold makes this equipment.

Question 3

Which of the following is an example of an unallowable cost under federal cost principles?

Accepted Answer

Alcoholic beverages for a faculty research dinner

Answer

Alcoholic beverages are explicitly listed as unallowable costs under 2 CFR Part 200.468, regardless of the nature of the event.

Question 4

The process of recovering indirect costs from a federal sponsor based on an approved rate is known as:

Accepted Answer

F&A cost recovery

Answer

Facilities and Administrative (F&A) cost recovery refers to the process of applying an approved indirect cost rate to allowable direct costs to recover overhead expenses.

Question 5

A principal investigator wants to rebudget funds from personnel to equipment, exceeding 10% of the total award. What is typically required?

Accepted Answer

Sponsor prior approval

Answer

Most federal awards require prior approval from the sponsor when a rebudget action exceeds 10% of the total award amount, as specified in 2 CFR Part 200.308.

(CRA) Certified Research Administrator Practice Test

(CRA) Certified Research Administrator Practice Test

CRA Financial Management of Sponsored Programs 2