GAC Grant Accounting & Federal Compliance 1 — Questions and Answers
Question 1: Which federal regulation serves as the primary unified framework governing the administration of federal awards to non-federal entities, consolidating multiple prior OMB circulars?
- OMB Circular A-133
- 2 CFR Part 200 (Uniform Guidance) (Correct answer)
- Federal Acquisition Regulation (FAR)
- Government Accountability Office Standards
Correct answer: 2 CFR Part 200 (Uniform Guidance)
2 CFR Part 200, known as the Uniform Guidance, is the comprehensive framework that consolidated prior OMB circulars (A-21, A-87, A-102, A-110, A-122, A-133) governing federal award administration.
Question 2: What is a 'pass-through entity' in the context of federal grant management?
- A federal agency that distributes grants directly to individuals
- A non-federal entity that receives a federal award and provides subawards to subrecipients (Correct answer)
- An auditing firm that reviews federal grant expenditures
- A contractor that performs work under a federal prime grant
Correct answer: A non-federal entity that receives a federal award and provides subawards to subrecipients
A pass-through entity is a non-federal entity that receives a federal award and then distributes subawards to subrecipients to carry out part of the federal program's purpose.
Question 3: Under 2 CFR Part 200, costs charged to federal awards must satisfy which three basic cost principles?
- Allowable, allocable, and reasonable (Correct answer)
- Documented, budgeted, and approved
- Consistent, compliant, and competitive
- Audited, reviewed, and certified
Correct answer: Allowable, allocable, and reasonable
The Uniform Guidance requires that costs be allowable (permitted under regulations), allocable (properly assigned to the award), and reasonable (a prudent person would pay that amount).
Question 4: What is the Catalog of Federal Domestic Assistance (CFDA), now known as Assistance Listings on SAM.gov?
- A register of all federal contractors and vendors approved for grant work
- A government-wide database identifying all federal assistance programs by unique program numbers (Correct answer)
- A list of approved indirect cost rates for federal grantees
- An audit database tracking federal grant expenditures nationwide
Correct answer: A government-wide database identifying all federal assistance programs by unique program numbers
The CFDA (now Assistance Listings) is a government-wide compendium of federal programs that provide assistance to the public, each identified by a unique five-digit program number.
Question 5: Under 2 CFR Part 200, how is a 'subrecipient' distinguished from a 'contractor'?
- A subrecipient performs commercial work for the recipient, while a contractor carries out the program mission
- A subrecipient carries out part of the federal program's purpose via a subaward, while a contractor provides goods or services for the recipient's own use (Correct answer)
- A subrecipient must be a governmental entity, while a contractor may be a private company
- A subrecipient receives more than $25,000, while a contractor receives less
Correct answer: A subrecipient carries out part of the federal program's purpose via a subaward, while a contractor provides goods or services for the recipient's own use
A subrecipient receives a subaward to carry out part of the federal program's mission, while a contractor provides commercial goods or services for the recipient's operational needs.
Question 6: Which document formally establishes the legal relationship, terms, and conditions between a federal awarding agency and a grant recipient?
- Notice of Funding Opportunity (NOFO)
- Federal Award Agreement (Correct answer)
- Budget Narrative and Justification
- Request for Proposal (RFP)
Correct answer: Federal Award Agreement
The Federal Award Agreement is the legally binding document specifying the grant's terms and conditions, including the award amount, period of performance, and compliance requirements.
Question 7: What is the purpose of the Schedule of Expenditures of Federal Awards (SEFA)?
- To record all federal grant applications submitted during the fiscal year
- To list all federal awards received and expended during the fiscal year as the basis for Single Audit determination (Correct answer)
- To summarize indirect costs charged to federal programs by cost pool
- To document a recipient's subrecipient monitoring activities and findings
Correct answer: To list all federal awards received and expended during the fiscal year as the basis for Single Audit determination
The SEFA is a required supplementary schedule listing all federal awards expended during the fiscal year and serves as the primary basis for determining Single Audit requirements and major program selections.
GAC Grant Accounting & Federal Compliance 1
Which federal regulation serves as the primary unified framework governing the administration of federal awards to non-federal entities, consolidating multiple prior OMB circulars?