Budget and Financial Planning Flashcards
7 cards from real Grant Writing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budget and Financial Planning flashcards as text
What is the purpose of a 'carryover' request in grant management?
Answer: To transfer unexpended grant funds from one year to the next with funder approval
A carryover request allows a grantee to use unspent funds from a prior grant year in a subsequent year, typically requiring funder notification or approval.
Which of the following costs would most likely be classified as a 'direct cost' on a grant budget?
Answer: A research assistant hired specifically for the grant project
A research assistant hired exclusively for the grant project is a direct cost because the expense can be specifically and accurately attributed to the grant activity.
Under what circumstance must a grantee complete a Single Audit?
Answer: When it expends $750,000 or more in federal awards in a single fiscal year
The Single Audit Act (as implemented by the Uniform Guidance) requires a single audit for non-federal entities that expend $750,000 or more in federal awards during a fiscal year.
A grant budget includes $5,000 for consultant fees. To be allowable, the consultant's rate must be:
Answer: Reasonable and consistent with rates paid for similar services in the marketplace
Consultant rates must be reasonable—consistent with what the market pays for comparable services—and should be documented with a rate justification or market comparison.
What is the significance of segregating grant funds in a separate bank account or accounting cost center?
Answer: It ensures accurate tracking, prevents commingling, and simplifies audits
Keeping grant funds separate (either in a dedicated account or through separate cost center coding) ensures expenditures are accurately tracked and prevents the prohibited practice of commingling with other funds.
A grant officer asks for a 'burn rate analysis.' What information does this analysis typically provide?
Answer: The pace at which grant funds are being spent relative to the time elapsed in the grant period
A burn rate analysis compares actual spending to the expected spending pace, helping identify if a project is under-spending (at risk of not meeting objectives) or over-spending (at risk of running out of funds early).
Which of the following best describes 'cost reasonableness' as required by the Uniform Guidance?
Answer: The cost reflects what a prudent person would pay under similar circumstances
Reasonableness means the cost does not exceed what a prudent person would incur under similar circumstances, considering market conditions, necessity, and arms-length bargaining.