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

Determining staff salaries

Answer

Setting travel per diem rates

Answer

Establishing equipment thresholds

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

Volunteer labor valued at market rate

Answer

Donated equipment from a partner organization

Answer

State government appropriations

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

$45,000

Answer

$90,000

Answer

$72,000

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

The consultant's home address

Answer

The consultant's educational background only

Answer

A general statement that expertise is needed

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

The entire project duration from start to finish

Answer

The time allowed to submit a no-cost extension

Answer

The fiscal year of the granting agency

Question 6

Which scenario would most likely trigger a prior approval requirement from a federal funding agency?

Accepted Answer

Transferring more than 25% of the total award between budget categories

Answer

Spending 2% less on supplies than budgeted

Answer

Reallocating $500 between two supply line items

Answer

Purchasing office supplies listed in the approved budget