Grant Writing Budget and Financial Planning Questions and Answers Flashcards

What is a modified total direct cost (MTDC) base commonly used for in federal grant budgets?

Answer: Calculating indirect cost rates

The MTDC base excludes certain costs like equipment and subaward amounts over $25,000 and is used to calculate federally negotiated indirect cost rates.

When preparing a cost-share budget for a federal grant, which of the following is an unallowable source of matching funds?

Answer: Funds from another federal grant

Federal regulations prohibit using funds from one federal grant as cost-share or match for another federal grant.

A grant budget includes $180,000 in personnel costs and the organization's federally negotiated indirect cost rate is 45% MTDC. What is the indirect cost amount on personnel alone?

Answer: $81,000

$180,000 multiplied by 0.45 equals $81,000 in indirect costs attributable to personnel.

Which budget justification element is MOST critical when requesting funds for a consultant in a grant proposal?

Answer: The daily or hourly rate and number of days of service

Funders require specific rate and level-of-effort details to evaluate whether consultant costs are reasonable and necessary.

What does the term 'budget period' refer to in a multi-year federal grant?

Answer: A single funding interval, typically 12 months, within the total project period

A budget period is one discrete funding interval within the total project period, usually lasting 12 months.

Which scenario would most likely trigger a prior approval requirement from a federal funding agency?

Answer: Transferring more than 25% of the total award between budget categories

Most federal agencies require prior written approval when cumulative transfers among budget categories exceed 25% of the total award.