GPC Financial Management & Budgeting 3

Question 1

What is an indirect cost rate in grant budgeting?

Accepted Answer

A negotiated rate used to recover overhead costs associated with grant activities

Answer

The percentage of administrative costs charged directly to each grant

Answer

The rate at which grant funds are electronically released to the grantee

Answer

The percentage of the award subcontracted to other organizations

Question 2

What is the de minimis indirect cost rate available under 2 CFR Part 200?

Accepted Answer

10%

Answer

5%

Answer

15%

Answer

20%

Question 3

What is 'Modified Total Direct Costs' (MTDC) as defined in the Uniform Guidance?

Accepted Answer

Direct costs excluding equipment, capital expenditures, patient care charges, and subcontract amounts over $25,000

Answer

Total project costs minus all equipment purchases and capital items

Answer

All direct costs plus the total indirect cost recovery

Answer

Total federal expenditures minus all administrative costs

Question 4

What is a Negotiated Indirect Cost Rate Agreement (NICRA)?

Accepted Answer

A formal agreement between an organization and its cognizant federal agency establishing indirect cost rates

Answer

A contract between two organizations sharing grant funds

Answer

An agreement between a grantee and subgrantee on cost allocation methodology

Answer

A negotiated settlement following a material audit finding

Question 5

What does fiscal accountability fundamentally require of grant recipients?

Accepted Answer

Maintaining adequate internal controls and accurate records of grant expenditures

Answer

Publishing annual financial reports in local newspapers

Answer

Sharing all financial data with other grantee organizations

Answer

Hiring an external CFO to manage all grant funds exclusively

Question 6

What is 'subrecipient monitoring' in the context of federal grant management?

Accepted Answer

Oversight activities a pass-through entity performs on organizations receiving sub-awards

Answer

Reviewing the performance evaluations of grant writing staff

Answer

Monitoring the funder's compliance with grant agreement terms

Answer

Tracking contractor performance on project deliverables

Question 7

Which criteria must a cost meet to be considered 'allowable' under federal grant cost principles?

Accepted Answer

Reasonable, allocable, and consistent with applicable cost principles and award terms

Answer

Approved by the board of directors before the expense is incurred

Answer

Within the organization's standard operating budget and internal policy

Answer

Verbally pre-approved by the funder's assigned program officer