Grant Writing Grant Budget Formulation 4

Question 1

Which term describes the grant funds actually spent or obligated during a budget period?

Accepted Answer

Expenditures

Answer

Expenditures are the actual outlays or obligations of grant funds charged to the award within the approved budget period.

Question 2

A subrecipient is best described as:

Accepted Answer

An entity that receives a portion of the grant award to carry out part of the project's scope of work

Answer

A subrecipient receives a subaward and is responsible for programmatic decision-making; this differs from a contractor/vendor who provides goods or services for a set price.

Question 3

Why is it important to use actual, documented fringe benefit rates rather than estimated percentages in a grant budget?

Accepted Answer

Accurate rates prevent over- or under-budgeting and reduce audit risk

Answer

Using negotiated or actual institutional fringe rates ensures the budget accurately reflects true labor costs and withstands funder and auditor scrutiny.

Question 4

Which of the following is an example of an in-kind match contribution?

Accepted Answer

Donated volunteer hours valued at the volunteer's professional rate

Answer

In-kind contributions include non-cash inputs like volunteer time, donated space, or equipment; they must be valued fairly and documented.

Question 5

What is a 'no-cost extension' (NCE) in grant management?

Accepted Answer

An approved extension of the project period without additional federal funds

Answer

A no-cost extension allows the grantee more time to complete project activities using remaining funds without receiving new money from the funder.

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing Grant Budget Formulation 4