Grant Writing Post-Award Grant Management Questions and Answers

Question 1

An organization managing a federal grant determines that a new piece of equipment, which was not in the original budget, is essential for project success. The cost is $4,500, which is below the organization's capitalization threshold but above the micro-purchase threshold. What is the MOST critical first step the grant manager should take?

Accepted Answer

Review the grant agreement and 2 CFR 200 for prior approval requirements regarding budget modifications and equipment purchases.

Answer

Before making any unbudgeted purchase or budget modification, the grant manager's primary responsibility is to consult the governing documents. The grant agreement and federal regulations (2 CFR 200) will specify the rules for budget deviations, including thresholds that may require prior written approval from the awarding agency. Acting without this information (Choice A) could result in an unallowable cost, while submitting an amendment (Choice C) may be unnecessary if the deviation is within allowable limits. Using other funds (Choice D) is poor financial practice and does not address the allowability of the expense under the grant.

Question 2

A nonprofit is managing a federal grant and is required to submit routine financial reports to the awarding agency to show cumulative expenses incurred. Which standard government-wide form is typically used for this purpose?

Accepted Answer

SF-425 (Federal Financial Report)

Answer

The SF-425, or Federal Financial Report (FFR), is the standard form used by federal agencies to collect financial data from grant recipients. The SF-424 is used for grant applications, the Form 990 is an IRS informational return for nonprofits, and the SF-270 is used to request payments, not to report on overall financial status.

Question 3

Three months into a one-year foundation grant, the lead Program Director, who was named as key personnel in the proposal, unexpectedly resigns. The organization quickly hires a replacement with similar qualifications. What is the most appropriate action for the grant manager to take regarding the foundation?

Accepted Answer

Proactively contact the foundation's program officer to inform them of the change and introduce the new director.

Answer

Most grant agreements require the grantee to notify the funder of any changes in key personnel. Proactive and transparent communication with the program officer is a best practice that maintains a strong, positive relationship with the funder. Waiting until a formal report or not mentioning it at all could violate the terms of the agreement and damage trust. A formal request to re-evaluate the award is an unnecessary overreaction.

Question 4

Which of the following is the primary purpose of maintaining detailed time and effort reporting for employees whose salaries are charged to a federal grant?

Accepted Answer

To provide auditable documentation that personnel charges to the award are accurate, allowable, and properly allocated.

Answer

According to federal regulations (2 CFR § 200.430), charges for salaries and wages to federal awards must be based on records that accurately reflect the work performed. This time and effort documentation is a critical component of internal controls and serves as the primary evidence during an audit that personnel costs are legitimate and correctly assigned to the grant project. While the data might be used for other purposes, its main function is to ensure compliance.

Question 5

During the grant closeout process, an organization discovers it has $2,500 in unspent funds from a $150,000 federal grant. The grant agreement does not specify how to handle unspent funds. What is the standard and most appropriate course of action?

Accepted Answer

Return the unspent funds to the granting agency.

Answer

Standard practice for federal grants requires that any unobligated or unspent funds be returned to the awarding agency upon closeout unless the agreement explicitly states otherwise. Using the funds for other purposes (Choice A) or making last-minute, non-essential purchases (Choice C) is improper and could be viewed as fraudulent. A no-cost extension (Choice D) is for needing more time to complete the original scope of work, not for spending leftover funds.

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing Post-Award Grant Management Questions and Answers