Grant Writing Post-Award Grant Management 3 — Questions and Answers
Question 1: Under Uniform Guidance, which of the following is an allowable cost principle that all federal grant expenditures must meet?
- Costs must be incurred after the grant period ends
- Costs must be reasonable, allocable, and allowable under the award (Correct answer)
- Costs must be approved by the funder's board
- Costs must only cover direct expenses, never indirect
Correct answer: Costs must be reasonable, allocable, and allowable under the award
2 CFR 200 requires that all costs charged to federal awards be reasonable, allocable to the award, and allowable under the applicable cost principles.
Question 2: What is the purpose of a single audit (2 CFR 200 Subpart F)?
- To evaluate the quality of the grant narrative for future awards
- To provide an independent examination of a non-federal entity's federal expenditures above the threshold (Correct answer)
- To audit the federal agency's distribution of grant funds
- To assess programmatic outcomes of funded projects
Correct answer: To provide an independent examination of a non-federal entity's federal expenditures above the threshold
A single audit is an organization-wide audit required when a non-federal entity expends $1,000,000 or more in federal funds in a fiscal year, covering both financial statements and federal award compliance.
Question 3: A grant manager notices a vendor invoice was charged to the wrong grant. What should she do first?
- Ignore it if the total budget is not exceeded
- Process a cost transfer with proper documentation and justification (Correct answer)
- Delete the charge from the accounting system
- Wait until the annual audit to correct it
Correct answer: Process a cost transfer with proper documentation and justification
A documented cost transfer is the proper mechanism to move an erroneous charge from one account to another, with timely correction and a clear justification trail.
Question 4: Which federal agency oversees the Uniform Guidance (2 CFR 200) framework for federal grant management?
- The Government Accountability Office (GAO)
- The Office of Management and Budget (OMB) (Correct answer)
- The Congressional Budget Office (CBO)
- The Federal Reserve
Correct answer: The Office of Management and Budget (OMB)
The Office of Management and Budget (OMB) issued and oversees 2 CFR 200, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Question 5: An organization's indirect cost rate agreement has expired. What is the safest approach for charging indirect costs to a new federal award?
- Use the previous year's approved rate until a new one is negotiated (Correct answer)
- Stop charging indirect costs entirely
- Charge the maximum allowable rate without an agreement
- Use another organization's rate as a benchmark
Correct answer: Use the previous year's approved rate until a new one is negotiated
Many agencies permit the use of the most recently approved indirect cost rate on a provisional basis while a new rate is being negotiated, but this should be confirmed with the awarding agency.
Question 6: What is the key difference between a grant 'modification' and a grant 'amendment'?
- They are interchangeable terms with no practical difference
- A modification is initiated by the recipient; an amendment is a formal change to the award document itself (Correct answer)
- A modification increases the budget; an amendment extends the timeline
- Amendments apply only to state grants; modifications apply to federal grants
Correct answer: A modification is initiated by the recipient; an amendment is a formal change to the award document itself
While terminology varies by funder, a modification typically refers to recipient-initiated changes in scope or budget, whereas an amendment is a formal revision to the executed award document issued by the grantor.
Question 7: What does 'subrecipient monitoring' require of a pass-through entity?
- Conducting annual on-site visits to every subrecipient regardless of risk
- Ensuring subrecipients comply with federal requirements and verifying that activities are performed as agreed (Correct answer)
- Paying subrecipients directly without reviewing their invoices
- Allowing subrecipients to self-certify compliance without oversight
Correct answer: Ensuring subrecipients comply with federal requirements and verifying that activities are performed as agreed
Pass-through entities are responsible under 2 CFR 200.332 for monitoring subrecipient activities to ensure compliance with federal award requirements and that performance goals are met.
Grant Writing Post-Award Grant Management 3
Under Uniform Guidance, which of the following is an allowable cost principle that all federal grant expenditures must meet?