Grants Management Test for Institutions of Higher Education and Nonprofit Organizations

1. Grants Management Test for Institutions of Higher Education and Nonprofit Organizations Tiffany R. Winters, Esq. Erin Auerbach, Esq. twinters@bruman.com eauerbach@bruman.com Brustein & Manasevit, PLLC Fall Forum 2011

2. Grants Management Test Welcome Class! Please put all your books away You have 10 minutes to complete your 30 question pop quiz!

3. EDGAR Plus Book 34 C.F.R. § 74.21, page 9 Question 1: In order to receive Federal funds, grantees and subgrantees must implement financial management systems that: Include budget controls, such as routinely reconciling actual expenditures to budgeted amounts. Are capable of producing accurate, current and reliable financial reports. Include detailed accounting records that show the source and application of Federal funds. All of the above.

4. EDGAR Plus Book Table of Contents, page iii 34 C.F.R. Part 75, page 31 34 C.F.R. Part 76, page 63 Question 2: The same rules apply whether the grant is awarded directly from the U.S. Department of Education or through the State education agency. True False

5. EDGAR Plus Book OMB Circular A-133 § __.210, page 358 Question 3: A contractor and a subgrantee have the same legal responsibility when working on Federal programs. True False

6. EDGAR Plus Book OMB Circular A-133 § __.210(b)(5), page 358 Question 4: A subgrant is different from a contract because: A subgrant provides goods and services that are ancillary to the operation of the Federal program. A subgrant uses the Federal funds to carry out a program as compared to providing goods or services for a program. A subgrant is not subject to compliance requirements of the Federal program. A subgrant and a contract are the same.

7. EDGAR Plus Book Part 74 Table of Contents, page 3 Question 5: The major “systems” in grants management are: Procurement, Data Reporting, and Contracting. Inventory Management, Procurement, and Financial Management. Data Reporting, Financial Management, and Inventory Management. Inventory Management, Assessment/Evaluation, and Financial Management.

8. EDGAR Plus Book OMB Circular A-133, § __.105, page 355 Question 6: The goal of an internal control is to ensure: Efficiency of operations. Reliability of financial reporting. Compliance with applicable laws. All of the above.

9. EDGAR Plus Book OMB Circular A-21, Appendix C(1-2, 5), pages 238-239 OMB Circular A-122, Appendix A(2, 5), pages 322-323 Question 7: For a cost to be allowable to a Federal grant award, it must meet the following criteria: Necessary and reasonable. Allocable to the Federal grant award. Subtract applicable credits. All of the above.

10. EDGAR Plus Book OMB Circular A-21, Appendix C(3), page 238 OMB Circular A-122, Appendix A (3), page 323 Question 8: A cost is reasonable if: It is on sale. It does not cause the grantee or subgrantee to exceed its total Federal allocation. It does not exceed the cost that would be incurred by a prudent person under similar circumstances. None of the above.

11. EDGAR Plus Book OMB Circular A-21, Appendix C(3), page 238 OMB Circular A-122, Appendix A (3), page 323 Question 9: Costs are allocable to the grant if: The cost of the goods or services is proportionate to the benefits received by the grant. At least 50% of the goods or services will directly benefit the grant. The goods or services, in any way, benefit the grant objectives. The cost of the goods or services was included in the budget proposal.

12. EDGAR Plus Book 34 C.F.R. § 74.28, page 15 Question 10: A grantee/subgrantee must obligate all Federal funds: Within the statute of limitations. By the end of the period of availability. As soon as possible. None of the above.

13. EDGAR Plus Book OMB Circular A-21, Part J(10)(c)(2)(e), page 257 Question 11: Professional employees of postsecondary institutions paid in whole or in part with Federal funds, regardless of cost objectives, must fill out a time and effort certification at least: Monthly Daily Every six months Weekly

14. EDGAR Plus Book 34 C.F.R. § 74.24, page 12 Question 12: A program that is partially funded with Federal funds that charges tuition for students to participate in the program may put all the tuition earned into its general funds account. True False

15. EDGAR Plus Book 34 C.F.R. § 74.24, page 12 Question 13: When postsecondary institutions or non-profits generate program income in a Federal education program, they can use the program income as follows: Add the program income to the program budget that earned the income. Use the program income to finance the non-Federal share of the program. Deduct the program income, after costs, from the program award. All of the above.

16. EDGAR Plus Book Table of Contents, page iii OMB Circular A-21, page 233 Question 14: Postsecondary institutions are subject to: OMB Circular A-21 OMB Circular A-87 OMB Circular A-122 All of the above

17. EDGAR Plus Book OMB Circular A-122, Appendix B(8)(m)(2)(d), page 334 Question 15: All employees of nonprofit organizations paid in whole or in part with Federal funds must fill out a time and effort documentation at least: Weekly Monthly Semi-annually None of the above

18. EDGAR Plus Book 34 C.F.R. § 74.25, page 13 Question 16: Grantees and subgrantees don’t have to reconcile actual expenditures to budgeted amounts, since the budgeted amounts are not based on the actual expenditures and are only estimates. True False

19. EDGAR Plus Book OMB Circular A-87, Part B(8), page 290 Question 17: Contracts supported with Federal funds must be in writing. True False

20. EDGAR Plus Book 34 C.F.R. § 74.34 (f), page 17 Question 18: Grantees and subgrantees must maintain detailed property records for all equipment purchased with Federal funds. True False

21. EDGAR Plus Book 34 C.F.R. § 74.34(f)(3), page 17 Question 19: A physical inventory of all equipment must be taken: Yearly Once every two years Once every six months Whenever you feel like it

22. EDGAR Plus Book 34 C.F.R. § 74.34(f)(3), page 17 Question 20: If equipment is missing upon inventory review, the grantee or subgrantee must: Simply remove it off the inventory list. Buy a new piece of equipment quickly. Interview every staff member until one confesses to the theft. Investigate.

23. EDGAR Plus Book 34 C.F.R. § 76.707, page 87 Question 21: An airplane ticket for a business conference obligates to the Federal grant award: On the date the subgrantee decides to make travel arrangements. On the date the travel arrangements are booked and seat assignments are confirmed. On the date the travel arrangements are paid in full. On the date the traveler takes the flight to the destination.

24. EDGAR Plus Book 34 C.F.R. § 76.707, page 87 Question 22: Expenditures for services performed by a contractor are obligated to the Federal grant award: On the date that the services are performed. On the date that the grantee/subgrantee receives the invoice. On the date that the subgrantee signs the contract for services. At any point during the period of availability.

25. EDGAR Plus Book 34 C.F.R. § 74.42, page 19 Question 23: A conflict of interest arises when the following persons have a financial interest in a firm or company that is selected for a contract by the grantee: Me (an employee of the grantee). My son/daughter. My husband/wife’s company is selected. All of the above.

26. EDGAR Plus Book 34 C.F.R. § 74.21(b)(2, 7), page 9 Question 24: What forms of source documentation should be maintained as records? Receipts for actual travel. Copy of contracts for services performed. Payroll registers. All of the above.

27. EDGAR Plus Book 34 C.F.R. § 76.707, page 87 Question 25: Expenditures on services performed by an employee of a grantee/subgrantee are obligated to the Federal award: On the date when the subgrantee signs the contract to obtain the services. On the date that the services are performed. On the date the employee signs the time and effort certification. On the date the employee is paid for the services.

28. EDGAR Plus Book “Entertainment Costs” OMB Circular A-21, page 264 OMB Circular A-122, page 337 Question 26: Assuming all costs are reasonable, which of the following cost incurred during an overnight business trip is not allowable: Dinner (without any alcoholic beverages) Hotel room Mileage costs A ticket to a movie

29. EDGAR Plus Book 34 C.F.R. § 74.43, page 20 Question 27: A grantee/subgrantee can sole source a contract as long as the vendor does a good job. True False

30. EDGAR Plus Book Allocability OMB Circular A-21, Appendix C(4), page 238 OMB Circular A-122, Appendix A(4), page 323 Question 28: If there are funds remaining at the end of the project period, they may be used to purchase goods or services to be used in the future. True False

31. EDGAR Plus Book “Advertising and Public Relations Costs” OMB Circular A-21, page 254 OMB Circular A-122, page 331 Question 29: It is permissible for grantees and subgrantees to expend Federal funds on advertisements that generally promote the organization. True False

32. EDGAR Plus Book 34 C.F.R. § 81.31(c), page 134 Question 30: Grantees and subgrantees should retain their records for: 1 year from the date of obligation. 3 years from the date of obligation. 5 years from the date of obligation. 10 years from the date of obligation.

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