GPC Financial Management & Budgeting

Question 1

What is a 'direct cost' in grant budgeting?

Accepted Answer

Costs that can be specifically identified with a particular sponsored project

Answer

Costs that benefit multiple projects and cannot be specifically identified

Answer

Costs allocated to overhead and administrative functions

Answer

Costs that are reimbursed only after project completion

Question 2

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

Accepted Answer

2 CFR Part 200

Answer

FAR Part 31

Answer

OMB Circular A-21

Answer

45 CFR Part 74

Question 3

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

Accepted Answer

To explain and justify each budget line item to the funder

Answer

To list all personnel involved in the project

Answer

To demonstrate the organization's financial history

Answer

To outline the project timeline and milestones

Question 4

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

Accepted Answer

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

Answer

The distribution of costs between two or more federal funders

Answer

The allocation of indirect costs across multiple grants

Answer

The process of splitting a grant award between departments

Question 5

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

Accepted Answer

Alcoholic beverages served at a project event

Answer

Salaries for project staff

Answer

Travel to conferences directly related to the project

Answer

Supplies used exclusively for the project

Question 6

What is a 'budget modification' in grant management?

Accepted Answer

A formal process to reallocate funds between budget categories

Answer

Changing the grant's objectives mid-project without funder approval

Answer

The final financial report submitted to the funder at closeout

Answer

A request to extend the project's period of performance

Question 7

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

Accepted Answer

The timeframe during which grant funds may be obligated and expended

Answer

The annual audit period required by the funder

Answer

The timeline for submitting financial reports to the government

Answer

The duration of the grant professional's employment contract