Financial Management & Budgeting Flashcards
7 cards from real GPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management & Budgeting flashcards as text
What is an indirect cost rate in grant budgeting?
Answer: A negotiated rate used to recover overhead costs associated with grant activities
An indirect cost rate is a negotiated percentage used to allocate an organization's overhead costs (facilities, administration) proportionally across grants and other activities.
What is the de minimis indirect cost rate available under 2 CFR Part 200?
Answer: 10%
Under 2 CFR Part 200, organizations that have never had a negotiated indirect cost rate may elect to use a de minimis rate of 10% of modified total direct costs (MTDC).
What is 'Modified Total Direct Costs' (MTDC) as defined in the Uniform Guidance?
Answer: Direct costs excluding equipment, capital expenditures, patient care charges, and subcontract amounts over $25,000
MTDC includes salaries, fringe benefits, supplies, services, and travel, but excludes equipment, capital expenditures, patient care charges, and the portion of subcontracts exceeding $25,000.
What is a Negotiated Indirect Cost Rate Agreement (NICRA)?
Answer: A formal agreement between an organization and its cognizant federal agency establishing indirect cost rates
A NICRA is a formal, binding agreement between a non-federal entity and its cognizant federal agency that establishes the organization's indirect cost rate(s) for use across all federal grants.
What does fiscal accountability fundamentally require of grant recipients?
Answer: Maintaining adequate internal controls and accurate records of grant expenditures
Fiscal accountability requires grantees to maintain sound internal controls, accurate records, and proper documentation to ensure grant funds are used appropriately and as intended.
What is 'subrecipient monitoring' in the context of federal grant management?
Answer: Oversight activities a pass-through entity performs on organizations receiving sub-awards
Subrecipient monitoring refers to the oversight activities that a pass-through entity must conduct to ensure subrecipients comply with federal requirements and use funds appropriately.
Which criteria must a cost meet to be considered 'allowable' under federal grant cost principles?
Answer: Reasonable, allocable, and consistent with applicable cost principles and award terms
Cost allowability is determined by whether an expense is reasonable, allocable, consistently treated, and meets criteria in applicable federal cost principles and the specific award terms.