Grant Writing Grant Writing Budget and Financial Planning Questions and Answers 2

Question 1

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

Accepted Answer

Calculating indirect cost rates

Answer

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

Question 2

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

Accepted Answer

Funds from another federal grant

Answer

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

Question 3

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?

Accepted Answer

$81,000

Answer

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

Question 4

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

Accepted Answer

The daily or hourly rate and number of days of service

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing Grant Writing Budget and Financial Planning Questions and Answers 2