Budget and Financial Planning Flashcards
7 cards from real Grant Writing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budget and Financial Planning flashcards as text
What is a 'de minimis' indirect cost rate, and who may use it?
Answer: A 10% rate available to organizations that have never had a negotiated indirect cost rate
The de minimis rate of 10% of modified total direct costs (MTDC) may be used indefinitely by any non-federal entity that has never negotiated an indirect cost rate with the federal government.
Modified Total Direct Costs (MTDC) typically EXCLUDES which of the following?
Answer: Equipment purchases over $5,000
Under the Uniform Guidance, MTDC excludes equipment, capital expenditures, patient care charges, rent, tuition remission, and sub-awards in excess of $25,000 per sub-award.
Which of the following best describes 'program income' in the context of a federal grant?
Answer: Gross income earned by the grantee that is directly generated by a federally supported activity
Program income is gross income earned by the grantee as a direct result of grant-supported activities, such as fees charged for services rendered under the grant.
An organization's auditor finds that grant funds were used for costs incurred after the grant's period of performance ended. This is an example of:
Answer: A questioned cost or unallowable expenditure
Costs incurred outside the approved period of performance are unallowable and become questioned costs, which the grantee must typically repay to the funder.
When developing a multi-year grant budget, which approach best accounts for salary increases over time?
Answer: Apply an annual escalation factor (e.g., 3%) to salaries in each subsequent year
Applying a consistent annual escalation factor reflects expected cost-of-living or merit increases, making the multi-year budget realistic and defensible to reviewers.
A grant requires a 1:1 cash match. If the requested grant amount is $150,000, how much must the applicant contribute in matching funds?
Answer: $150,000
A 1:1 (dollar-for-dollar) cash match means the applicant must contribute an amount equal to the grant award, so $150,000 in matching funds is required.
Which budget format presents costs organized by the type of expenditure (salaries, travel, supplies) rather than by project objective?
Answer: Object-class budget
An object-class (or line-item) budget categorizes costs by the nature of the expenditure, such as personnel, travel, and supplies, regardless of which program objective they support.