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Financial Management of Sponsored Programs Flashcards

7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management of Sponsored Programs flashcards as text

  1. Which federal regulation governs cost principles for institutions of higher education receiving federal awards?

    Answer: 2 CFR Part 200 Subpart E

    2 CFR Part 200 Subpart E (Uniform Guidance) consolidated and replaced OMB Circular A-21 and other older circulars governing cost principles for higher education.

  2. A university uses a federal grant to purchase a $6,000 laptop. Under Uniform Guidance, this item is classified as:

    Answer: Supplies

    Under 2 CFR Part 200, supplies are defined as items with a per-unit acquisition cost below the equipment threshold, which is $5,000 unless the institution has a higher threshold — but since $6,000 exceeds the federal $5,000 threshold, it would be equipment; however if the institution's capitalization threshold is higher, it may be treated as supplies — the standard federal threshold makes this equipment.

  3. Which of the following is an example of an unallowable cost under federal cost principles?

    Answer: Alcoholic beverages for a faculty research dinner

    Alcoholic beverages are explicitly listed as unallowable costs under 2 CFR Part 200.468, regardless of the nature of the event.

  4. The process of recovering indirect costs from a federal sponsor based on an approved rate is known as:

    Answer: F&A cost recovery

    Facilities and Administrative (F&A) cost recovery refers to the process of applying an approved indirect cost rate to allowable direct costs to recover overhead expenses.

  5. A principal investigator wants to rebudget funds from personnel to equipment, exceeding 10% of the total award. What is typically required?

    Answer: Sponsor prior approval

    Most federal awards require prior approval from the sponsor when a rebudget action exceeds 10% of the total award amount, as specified in 2 CFR Part 200.308.

  6. Which of the following best describes a 'carryover' in the context of sponsored program management?

    Answer: Using unspent funds from a prior budget period in a subsequent period

    Carryover refers to the use of unobligated funds remaining at the end of a budget period in a subsequent budget period, which may require prior sponsor approval.

  7. Under the Uniform Guidance, which entity is responsible for negotiating the F&A rate for a university?

    Answer: The cognizant federal agency

    The cognizant federal agency (e.g., DHHS or ONR for most universities) is responsible for negotiating and approving the institution's F&A cost rate.