Grant Writing Post-Award Grant Management 5 — Questions and Answers
Question 1: What is the difference between a 'fixed-price' grant and a 'cost-reimbursement' grant in terms of budget flexibility?
- Fixed-price grants reimburse actual costs; cost-reimbursement grants pay a set amount regardless of spending
- Cost-reimbursement grants reimburse documented actual costs; fixed-price grants pay an agreed amount regardless of actual costs (Correct answer)
- Both types require the same level of financial reporting
- Fixed-price grants are only available from private foundations
Correct answer: Cost-reimbursement grants reimburse documented actual costs; fixed-price grants pay an agreed amount regardless of actual costs
Under a cost-reimbursement grant, the funder pays the recipient's actual allowable costs; under a fixed-price award, the recipient receives a set amount regardless of actual expenditures.
Question 2: A federal program officer contacts the grantee about a material weakness identified in the audit. What is the grantee's required response?
- Dispute the finding without taking corrective action
- Submit a corrective action plan addressing how the weakness will be resolved (Correct answer)
- Ignore it if the dollar amount is below $10,000
- Transfer the grant to another organization immediately
Correct answer: Submit a corrective action plan addressing how the weakness will be resolved
When an audit identifies a material weakness, the auditee is required to submit a corrective action plan describing steps to remediate the finding and prevent recurrence.
Question 3: Which of the following is an example of 'supplanting' in grant management?
- Adding new project activities beyond the original scope
- Using grant funds to replace state funds that previously supported the same program (Correct answer)
- Hiring additional staff beyond what the grant budget allows
- Purchasing equipment not listed in the original budget
Correct answer: Using grant funds to replace state funds that previously supported the same program
Supplanting occurs when grant funds are used to replace existing non-federal funding for activities already supported, rather than supplementing or adding new activities.
Question 4: Why is it important to maintain grant records for the required retention period after closeout?
- To qualify for future grant awards automatically
- To provide documentation needed for audits, litigation, or programmatic reviews that may occur after the grant ends (Correct answer)
- To track the performance of former grant employees
- To calculate the organization's next indirect cost rate
Correct answer: To provide documentation needed for audits, litigation, or programmatic reviews that may occur after the grant ends
Federal regulations typically require records retention for three years from the submission date of the final financial report, ensuring documentation is available if audits or reviews arise.
Question 5: A grantee's key personnel member leaves mid-project. Under federal grants, what step is usually required?
- Simply hire a replacement and notify the funder in the next progress report
- Obtain prior approval from the awarding agency before appointing a replacement (Correct answer)
- Terminate the grant immediately
- Reduce the project budget proportionally
Correct answer: Obtain prior approval from the awarding agency before appointing a replacement
Changes in key personnel identified in the approved award typically require prior approval from the awarding agency because they affect the grant's technical direction and feasibility.
Question 6: What does 'drawdown' mean in the context of federal grant payment systems like ASAP?
- Reducing the grant budget due to poor performance
- Requesting and receiving grant funds from the federal payment system for reimbursement of allowable costs (Correct answer)
- Submitting a final expenditure report to close the grant
- Returning unused funds to the Treasury
Correct answer: Requesting and receiving grant funds from the federal payment system for reimbursement of allowable costs
A drawdown is when the grantee initiates a payment request through the federal payment system (such as HHS's ASAP) to receive reimbursement for costs already incurred under the award.
Question 7: Under Uniform Guidance, which of the following procurement methods is used for purchases between the micro-purchase threshold and the simplified acquisition threshold?
- Sole source procurement
- Small purchase procedures (Correct answer)
- Sealed bids (formal advertising)
- Competitive proposals (RFP)
Correct answer: Small purchase procedures
Small purchase procedures apply to procurement of supplies or services that do not exceed the simplified acquisition threshold ($250,000), requiring price or rate quotations from an adequate number of qualified sources.
Grant Writing Post-Award Grant Management 5
What is the difference between a 'fixed-price' grant and a 'cost-reimbursement' grant in terms of budget flexibility?