FREE Grant Writing Grant Budget Formulation Questions and Answers Flashcards
6 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 6 FREE Grant Writing Grant Budget Formulation Questions and Answers flashcards as text
Which of the following expenses would typically be classified as unallowable under federal grant cost principles?
Answer: Alcoholic beverages at a project event
Alcoholic beverages are explicitly listed as unallowable costs under 2 CFR Part 200, regardless of the context in which they are purchased.
What is the purpose of including a contingency line item in a grant budget?
Answer: To cover unexpected cost increases or unforeseen expenses during the project period
A contingency line item provides a financial buffer for unanticipated costs, though many federal funders restrict or disallow contingency amounts unless specifically authorized.
When a grantor requires a line-item budget format, what is the grant writer expected to provide?
Answer: A detailed breakdown of costs organized by specific expense categories
A line-item budget format requires costs to be broken down into specific categories such as personnel, travel, equipment, supplies, and contractual services with individual amounts for each.
How should in-kind contributions be valued when included as cost sharing in a grant budget?
Answer: At their fair market value at the time of the contribution
In-kind contributions must be valued at their fair market value at the time they are contributed, following the valuation standards outlined in 2 CFR Part 200.
A project requires hiring a full-time coordinator at $60,000 annually, but the coordinator will dedicate only 50% effort to the grant-funded project. What amount should be charged to the grant for this position?
Answer: $30,000
When a staff member dedicates 50% effort to a grant-funded project, only 50% of their salary ($30,000) should be charged to that grant.
What is the significance of a federally negotiated indirect cost rate agreement (NICRA) in grant budgeting?
Answer: It establishes the approved percentage an organization can charge for indirect costs on federal awards
A NICRA is an agreement between a federal agency and an organization that establishes the approved indirect cost rate the organization can apply to its federal awards.