CRA Project Development and Proposal Preparation 3 — Questions and Answers
Question 1: A research administrator is preparing a proposal that includes equipment costing $6,000. Under 2 CFR Part 200, this item is classified as:
- Capital equipment requiring prior approval
- Supplies, expensed in the year of purchase (Correct answer)
- Fabricated equipment requiring special tracking
- A direct cost requiring additional justification
Correct answer: Supplies, expensed in the year of purchase
Under 2 CFR Part 200, equipment is defined as tangible personal property with a per-unit cost of $5,000 or more; items below this threshold are classified as supplies.
Question 2: Which document establishes the basis for negotiating a federally negotiated indirect cost rate with a cognizant federal agency?
- Facilities and Administrative (F&A) cost proposal (Correct answer)
- Budget justification narrative
- Cost Accounting Standards disclosure statement
- Organizational chart
Correct answer: Facilities and Administrative (F&A) cost proposal
An F&A cost proposal documents the institution's actual costs for space, utilities, administration, and other overhead, forming the basis for rate negotiation.
Question 3: A PI wants to change a co-investigator to a new researcher mid-project. Under most federal awards, this requires:
- No action—PIs may make personnel changes freely
- Prior approval from the sponsor (Correct answer)
- Only internal institutional approval
- A budget revision submitted after the fact
Correct answer: Prior approval from the sponsor
Changes to key personnel are a prior-approval requirement under 2 CFR Part 200.308, requiring sponsor authorization before the change is made.
Question 4: What is the purpose of a concept paper or white paper submitted to a federal agency before a formal solicitation is issued?
- To substitute for a full proposal submission
- To gauge agency interest and feedback before investing in a full proposal (Correct answer)
- To establish intellectual property rights early
- To register the institution in SAM.gov
Correct answer: To gauge agency interest and feedback before investing in a full proposal
Concept papers allow applicants to receive informal feedback on alignment with agency priorities before committing resources to a full proposal.
Question 5: Which type of program announcement indicates that NIH will accept applications at any time during a specified period with no fixed deadline?
- Program Announcement (PA) (Correct answer)
- Request for Applications (RFA)
- Request for Proposals (RFP)
- Parent Announcement
Correct answer: Program Announcement (PA)
Program Announcements (PAs) describe standing NIH interests with standard submission dates, while RFAs have a single receipt date and set-aside funds.
Question 6: A proposal budget includes a 3% annual salary escalation for a two-year project. This practice is an example of:
- Budget padding
- Standard budgeting for anticipated cost increases (Correct answer)
- Unallowable cost inflation
- Direct cost misclassification
Correct answer: Standard budgeting for anticipated cost increases
Projecting salary escalation rates reflects expected increases and is an allowable, standard budgeting practice as long as the rate is reasonable and documented.
Question 7: A research administrator notices that the sponsor's RFP explicitly prohibits indirect costs. The institution's negotiated rate is 55%. What should the administrator do?
- Apply the full 55% rate anyway
- Waive indirect costs as required by the sponsor's terms (Correct answer)
- Negotiate a reduced rate with the cognizant agency
- Reclassify indirect costs as direct costs
Correct answer: Waive indirect costs as required by the sponsor's terms
When a sponsor explicitly prohibits indirect costs, the institution must comply with those terms, though this may require internal approval per institutional policy.
CRA Project Development and Proposal Preparation 3
A research administrator is preparing a proposal that includes equipment costing $6,000.
Under 2 CFR Part 200, this item is classified as: