GAC Grant Accounting & Federal Compliance 3

Question 1

What is the primary purpose of a Single Audit conducted under 2 CFR Part 200?

Accepted Answer

To provide assurance that non-federal entities expend federal awards in compliance with applicable laws, regulations, and award terms

Answer

To audit the financial statements of federal agencies that award grants

Answer

To verify that grant applications submitted by recipients contain accurate and complete information

Answer

To determine whether federal agencies awarded grants in accordance with appropriations law

Question 2

What is a 'major program' in the context of a Single Audit under 2 CFR Part 200?

Accepted Answer

A federal program selected for in-depth compliance testing based on a risk-based assessment of factors such as size and prior audit history

Answer

Any federal program in which expenditures exceed $1 million during the audit period

Answer

Any program administered directly by a cabinet-level federal agency

Answer

A program that accounts for more than 50 percent of the entity's total federal award expenditures

Question 3

What is a 'questioned cost' in the context of a federal grant audit?

Accepted Answer

A cost that the auditor believes may not comply with applicable laws, regulations, or the terms and conditions of the award

Answer

A cost that has been approved but is pending supporting documentation from the recipient

Answer

A cost incurred after the expiration of the period of performance without an approved extension

Answer

A cost that exceeds the originally approved budget line-item amount by any dollar amount

Question 4

Under 2 CFR Part 200, what is the general record retention requirement for financial records related to federal awards?

Accepted Answer

Three years after the submission of the final financial expenditure report

Answer

Two years after the submission of the final financial expenditure report

Answer

Five years after the end of the grant period of performance

Answer

Seven years after the completion of the final Single Audit for the award

Question 5

How is a 'material weakness' in internal control over compliance defined in the context of a Single Audit?

Accepted Answer

A deficiency or combination of deficiencies where there is a reasonable possibility that material noncompliance will not be prevented or detected and corrected on a timely basis

Answer

Any minor deficiency in financial record-keeping that falls below established materiality thresholds

Answer

Any deviation from grant regulations identified during an audit, regardless of the dollar amount involved

Answer

The absence of a formally adopted grants management policy approved by the governing board

Question 6

What does the grant 'closeout' process entail in federal grants management?

Accepted Answer

The process of completing all administrative actions and making final financial settlements after the period of performance ends

Answer

The unilateral termination of a grant by the federal agency due to recipient noncompliance or fraud

Answer

A mandatory independent audit of all grant expenditures conducted by federal auditors after award completion

Answer

The formal transfer of grant program responsibilities from the original recipient to a successor organization

Question 7

What does the Federal Funding Accountability and Transparency Act (FFATA) primarily require of federal agencies?

Accepted Answer

Public disclosure of federal award information—including recipients, amounts, and purposes—through a publicly accessible database

Answer

Annual independent audits of all recipients expending more than $500,000 in federal awards

Answer

Competitive bidding requirements for all federal procurement contracts exceeding $100,000

Answer

Criminal background investigations for all employees whose salaries are charged to federal grant awards