Grant Writing Post-Award Management and Reporting 4 — Questions and Answers
Question 1: What is the primary purpose of subrecipient monitoring in a federal pass-through grant arrangement?
- To ensure subrecipients apply for additional federal grants
- To verify that subrecipients use funds in compliance with federal requirements (Correct answer)
- To evaluate subrecipient staff performance
- To collect program income from subrecipients
Correct answer: To verify that subrecipients use funds in compliance with federal requirements
Pass-through entities are responsible for monitoring subrecipients to ensure compliance with applicable federal laws, regulations, and award terms.
Question 2: When must a grantee seek prior approval for a budget revision under federal Uniform Guidance?
- For any budget change regardless of amount
- When a cumulative reallocation exceeds 10% of the total award budget (Correct answer)
- Only when changing the scope of work
- Whenever adding a new line item not in the original budget
Correct answer: When a cumulative reallocation exceeds 10% of the total award budget
Under 2 CFR 200.308, prior approval is typically required when cumulative transfers among budget categories exceed 10% of the total award amount for non-construction grants.
Question 3: A grantee organization receives a federal audit finding related to inadequate internal controls. What document must the grantee submit?
- A revised budget justification
- A corrective action plan (Correct answer)
- A supplemental grant application
- A request for a no-cost extension
Correct answer: A corrective action plan
Organizations with audit findings are required to develop and submit a corrective action plan describing how they will address each finding.
Question 4: Under 2 CFR 200, what distinguishes a subrecipient from a contractor/vendor?
- Subrecipients receive less than $25,000; contractors receive more
- Subrecipients carry out part of the federal award's program objectives; contractors provide goods or services (Correct answer)
- Subrecipients are nonprofits; contractors are for-profit entities
- Subrecipients must be audited annually; contractors do not
Correct answer: Subrecipients carry out part of the federal award's program objectives; contractors provide goods or services
The key distinction is that subrecipients carry out a portion of the federal program's substantive work, while contractors provide commercial goods or services to the grantee.
Question 5: What is 'cash management' in the context of federal grant administration?
- Managing petty cash for small office expenses
- Ensuring that federal cash draws are timed to minimize the time between draw-down and expenditure (Correct answer)
- Maintaining a separate savings account for grant reserves
- Converting grant funds to foreign currency for international activities
Correct answer: Ensuring that federal cash draws are timed to minimize the time between draw-down and expenditure
Federal cash management rules require grantees to minimize the time between drawing down federal funds and actually spending those funds to avoid earning interest on federal money.
Question 6: A grantee's project director leaves mid-award. What is typically required under federal grant terms?
- The grant automatically terminates and must be reapplied for
- Prior approval from the federal agency before naming a replacement key person (Correct answer)
- No action is required as long as the project continues
- Immediate return of all unexpended funds
Correct answer: Prior approval from the federal agency before naming a replacement key person
Changes in key personnel named in the award typically require prior written approval from the federal agency.
Question 7: What is the 'period of performance' in a federal grant?
- The time during which performance reviews of staff are conducted
- The time span during which the grantee may incur costs against the award (Correct answer)
- The fiscal year of the federal funding agency
- The period between application and award notification
Correct answer: The time span during which the grantee may incur costs against the award
The period of performance is the time interval specified in the award during which the recipient may incur allowable costs charged to the grant.
Grant Writing Post-Award Management and Reporting 4
What is the primary purpose of subrecipient monitoring in a federal pass-through grant arrangement?