CRA Project Development and Proposal Preparation 2 — Questions and Answers
Question 1: When developing a project budget for a federal grant, which cost category typically requires the most detailed justification?
- Travel costs
- Personnel and fringe benefits (Correct answer)
- Indirect costs
- Supplies
Correct answer: Personnel and fringe benefits
Personnel and fringe benefits are usually the largest budget item and require detailed justification including effort percentages and salary bases.
Question 2: A research team wants to include a subaward in their NIH proposal. Which document is NOT required from the subrecipient at the time of proposal submission?
- Statement of Work
- Budget and justification
- Signed subrecipient agreement (Correct answer)
- Biographical sketch of key personnel
Correct answer: Signed subrecipient agreement
The formal subaward agreement is executed after award; at proposal stage, only the SOW, budget, and key personnel information are required.
Question 3: Which federal regulation governs the allowability, allocability, and reasonableness of costs for federally funded research?
- FAR Part 31
- 2 CFR Part 200 (Correct answer)
- OMB Circular A-110
- 45 CFR Part 75
Correct answer: 2 CFR Part 200
2 CFR Part 200 (Uniform Guidance) is the consolidated set of federal grant rules covering cost principles for all non-federal entities.
Question 4: A principal investigator requests that the research administrator include a cost-sharing commitment of 10% effort in the proposal. What is the primary risk of voluntary committed cost sharing?
- It increases the indirect cost base
- It becomes a binding obligation upon award (Correct answer)
- It reduces the indirect cost rate
- It requires prior approval from the sponsor
Correct answer: It becomes a binding obligation upon award
Voluntary committed cost sharing becomes a binding commitment upon award and must be tracked, documented, and reported.
Question 5: Which section of an NIH research proposal describes the innovation and significance of the proposed work?
- Specific Aims
- Research Strategy (Correct answer)
- Facilities and Resources
- Human Subjects
Correct answer: Research Strategy
The Research Strategy section contains the Significance, Innovation, and Approach components evaluated by study sections.
Question 6: A sponsor's RFP states that a letter of intent is required 30 days before the deadline. This letter is best described as:
- A binding commitment to submit a full proposal
- An informal notice to the sponsor of intent to apply (Correct answer)
- A legally enforceable agreement between parties
- A preliminary budget submission
Correct answer: An informal notice to the sponsor of intent to apply
A letter of intent is a non-binding notice that allows the sponsor to plan review logistics; it does not obligate the applicant to submit.
Question 7: When is it appropriate to request a no-cost extension on a federal research award?
- When additional funds are needed to complete the project
- When the scope of work cannot be completed within the project period due to unforeseen circumstances (Correct answer)
- When the PI wants to extend the project for convenience
- When the institution needs more time to submit financial reports
Correct answer: When the scope of work cannot be completed within the project period due to unforeseen circumstances
No-cost extensions are justified only when additional time—not funds—is needed due to unforeseen delays in completing the approved scope of work.
CRA Project Development and Proposal Preparation 2
When developing a project budget for a federal grant, which cost category typically requires the most detailed justification?