GAC Grant Accounting & Federal Compliance 2

Question 1

What is 'cost sharing' (or matching) in the context of federal grant management?

Accepted Answer

The recipient's contribution of non-federal resources toward federally funded project costs

Answer

The practice of splitting costs proportionally among multiple federal programs

Answer

The allocation of indirect costs across multiple concurrent grant awards

Answer

The process of billing allowable costs to more than one federal grant simultaneously

Question 2

Under 2 CFR Part 200, how is 'program income' defined?

Accepted Answer

Gross income earned by a non-federal entity that is directly generated as a result of federally supported activities during the period of performance

Answer

Income earned by federal agencies from administering grant programs

Answer

The total budget allocated to a federal grant program in a fiscal year

Answer

Revenue from participant fees charged for activities completely unrelated to the federal award

Question 3

What monitoring responsibilities does a pass-through entity have toward its subrecipients under 2 CFR Part 200?

Accepted Answer

Review financial and performance reports, conduct site visits as needed, and ensure subrecipients meet compliance requirements

Answer

Conduct a full independent financial audit of each subrecipient annually

Answer

Approve all subrecipient expenditures before any disbursement is made

Answer

Assign a dedicated federal compliance officer to each subrecipient organization

Question 4

What is the 'period of performance' for a federal grant award?

Accepted Answer

The time interval specified in the federal award during which the recipient may incur new obligations and expenditures of award funds

Answer

The time period allowed for completing the required Single Audit after award closeout

Answer

The period during which federal agency officials may conduct on-site inspections of grant records

Answer

The duration of the grant application review and selection process

Question 5

What is a 'no-cost extension' in federal grants management?

Accepted Answer

An extension of the period of performance beyond the original end date without the addition of new federal funds

Answer

An increase in grant funding provided without requiring additional programmatic deliverables

Answer

A waiver of indirect cost recovery requirements for the extended grant period

Answer

An exemption from Single Audit requirements during a temporarily extended period

Question 6

Under 2 CFR Part 200, which procurement method is required for purchases exceeding the simplified acquisition threshold when using federal grant funds?

Accepted Answer

Formal competitive procurement (competitive proposals or sealed bids)

Answer

Micro-purchase procedures without competitive bidding

Answer

Small purchase procedures with informal price quotes

Answer

Sole-source procurement with a written justification

Question 7

What is the purpose of a 'prior approval' requirement in federal grant management?

Accepted Answer

To require recipients to obtain federal awarding agency consent before making certain significant programmatic or budget changes

Answer

To permit recipients to begin spending federal funds before the award agreement is fully executed

Answer

To establish initial budget allocations and line-item authorizations at award inception

Answer

To document and ratify expenditures made during a preceding grant period for carry-forward purposes