Financial Management of Sponsored Programs Flashcards

Under the Uniform Guidance, when must a recipient obtain prior approval before initiating a project before the official start date?

Answer: When pre-award costs are incurred more than 90 days before the award start date

2 CFR Part 200.458 allows pre-award costs up to 90 days before the award start date at the institution's risk, but costs incurred more than 90 days prior require prior sponsor approval.

Which of the following best describes the 'reasonable cost' standard under federal cost principles?

Answer: A cost that a prudent person would incur under the same circumstances

Reasonableness is determined by whether a cost reflects the action a prudent person would take under similar circumstances, considering their responsibilities to the organization and the government.

A federal award has a total budget of $500,000 and the sponsor is NIH. The institution needs to purchase a $10,000 piece of equipment not included in the original budget. This action requires:

Answer: Prior approval from NIH because equipment was not in the approved budget

NIH requires prior approval for the acquisition of equipment not included in the approved budget, as it represents a change in scope and a significant purchase.

The term 'period of performance' in a federal grant refers to:

Answer: The time during which the recipient may incur obligations under the award

The period of performance is the time interval specified in the award during which the recipient is authorized to incur allowable costs.

Which type of federal audit is required for non-federal entities that expend $750,000 or more in federal awards in a fiscal year?

Answer: Single Audit (Uniform Guidance audit)

A Single Audit under 2 CFR Part 200 Subpart F is required for entities that expend $750,000 or more in federal awards in a fiscal year, covering all federal programs.

When a federal award is terminated for convenience by the sponsor, the recipient is entitled to:

Answer: Reimbursement for allowable costs incurred up to the termination date plus settlement costs

When an award is terminated for convenience, the recipient can claim allowable costs incurred through the termination date plus reasonable costs for settling and closing out the award.

A research administrator discovers that a lab technician's salary has been charged 100% to a federal grant, but the technician also spent significant time on non-federal departmental work. The correct action is to:

Answer: Adjust the salary allocation to reflect actual effort on the federal project

Salary charges must reflect the actual effort expended on the federal award; charging 100% when only a portion of effort was devoted to the project violates the effort reporting requirements.