Financial Management & Budgeting Flashcards

What is a 'direct cost' in grant budgeting?

Answer: Costs that can be specifically identified with a particular sponsored project

Direct costs are those that can be specifically and exclusively identified with a particular sponsored project or activity.

Which federal regulation governs cost principles for non-profit organizations receiving federal grants?

Answer: 2 CFR Part 200

2 CFR Part 200 (Uniform Guidance) consolidated federal grant regulations including cost principles for non-profits and other entities.

What is the primary purpose of a budget justification in a grant proposal?

Answer: To explain and justify each budget line item to the funder

A budget justification provides detailed explanations for each line item, demonstrating that costs are necessary, reasonable, and allowable.

What does 'cost sharing' or 'matching' mean in the context of grant funding?

Answer: The grantee's contribution of resources to the funded project from non-federal sources

Cost sharing refers to the portion of project costs the grantee contributes from non-federal sources to supplement the grant award.

Which of the following is typically NOT an allowable cost under most federal grants?

Answer: Alcoholic beverages served at a project event

Alcoholic beverages are explicitly listed as unallowable costs under 2 CFR Part 200 and most federal grant cost principles.

What is a 'budget modification' in grant management?

Answer: A formal process to reallocate funds between budget categories

A budget modification is a formal process where a grantee requests permission to move funds between budget categories when project needs change.

What does 'period of performance' mean in grant budgeting?

Answer: The timeframe during which grant funds may be obligated and expended

The period of performance is the specific timeframe authorized by the funder during which the grantee may incur costs and spend awarded funds.