1. Allowability and Grants Management Test When Working With NonTraditional Providers Tiffany R. Winters, Esq. Erin Auerbach, Esq. twinters@bruman.com eauerbach@bruman.com Spring Forum 2011

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

3. Question 1: A contractor and a subgrantee have the same legal responsibly when working on federal programs. A. True B. False EDGAR Plus Book OMB Circular A-133 § __.210, page 358

4. Question 2: A subgrant: A. Is not subject to compliance requirements of the Federal program. B. Is very similar to a contract. C. Provides goods or services that are ancillary to the operation of the Federal program. D. Uses the Federal funds to carry out a program as compared to providing goods or services for a program. EDGAR Plus Book OMB Circular A-133 § __.210(b)(5), page 358

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

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

7. Question 5: Data driven decision making is an important aspect of determining if costs are necessary. A. True B. False EDGAR Plus Book OMB Circular A-21 Appendix C(2), page 238 OMB Circular A-122 Appendix A(2), page 322

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

9. Question 7: Grantees and subgrantees must maintain detailed property records for all equipment purchased with Federal funds. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.34 (f), page 17

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

11. Question 9: Grantees and subgrantees should retain their records for: A. 1 year from the date of obligation. B. 3 years from the date of obligation. C. 5 years from the date of obligation. D. 10 years from the date of obligation. EDGAR Plus Book 34 C.F.R. § 81.31(c), page 134

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

13. Question 11: Expenditures on services performed by an employee of a grantee/ subgrantee are obligated to the Federal award: A. On the date when the subgrantee signs the contract to obtain the services. B. On the date that the services are performed. C. On the date the employee signs the time and effort certification. D. On the date the employee is paid for the services. EDGAR Plus Book 34 C.F.R. § 76.707, page 87

14. Question 12: Grantees and subgrantees dont have to reconcile actual expenditures to budgeted amounts, since the budgeted amounts are not based on the actual expenditures and are only estimates. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.25, page 13

15. Question 13: For a cost to be allowable to a Federal grant award, it must meet the following criteria: A. Necessary and reasonable. B. Allocable to the Federal grant award. C. Subtract Applicable Credits. D. All of the above. 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

16. Question 14: A cost is reasonable if: A. It supports the grant objectives, but costs more than the fair market value for the item being purchased. B. The cost does not cause the grantee or subgrantee to exceed its total Federal allocation. C. It does not exceed the cost that would be incurred by a prudent person under similar circumstances. D. None of the above. EDGAR Plus Book OMB Circular A-21 Appendix C(3), page 238 OMB Circular A-122 Appendix A(3), page 323

17. Question 15: Costs are allocable to the grant if: A. The cost of the goods or services is proportionate to the benefits received by the grant. B. At least 50% of the goods or services will directly benefit the grant. C. The goods or services, in any way, benefit the grant objectives. D. The cost of the goods or services was included in the budget proposal. EDGAR Plus Book OMB Circular A-21 Appendix C(4), page 238 OMB Circular A-122 Appendix A(4), page 323

18. Question 16: All employees of nonprofit organizations paid in whole or in part with federal funds must fill out a time and effort documentation at least: A. Weekly B. Monthly C. Semi-annually D. None of the above EDGAR Plus Book OMB Circular A-122, Appendix B(8)(m)(2)(d), page 334

19. Question 17: Postsecondary institutions are subject to: A. OMB Circular A-21 B. OMB Circular A-87 C. OMB Circular A-122 D. All of the above EDGAR Plus Book Table of Contents page iii OMB Circular A-21, page 233

20. Question 18: An airplane ticket for a business conference obligates to the Federal grant award: A. On the date the subgrantee decides to make travel arrangements. B. On the date the travel arrangements are booked and seat assignments are confirmed. C. On the date the travel arrangements are paid in full. D. On the date the traveler takes the flight to their destination. EDGAR Plus Book 34 C.F.R. § 76.707, page 87

21. Question 19: 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: A. Monthly B. Daily C. Every six months D. Weekly EDGAR Plus Book OMB Circular A-21, Part J(10)(c)(2)(e), page 257

22. Question 20: Assuming all costs are reasonable, which of the following cost incurred during an overnight business trip is not allowable: A. Dinner (without any alcoholic beverages) B. Hotel room C. Mileage costs D. A ticket to a movie EDGAR Plus Book Entertainment Costs OMB Circular A-21, page 264 OMB Circular A-122, page 337

23. Question 21: A grantee /subgrantee can sole source a contract as long as the vendor does a good job. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.43, page 20

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

25. Question 23: The major systems in grants management are: A. Procurement, Data Reporting, and Contracting. B. Inventory Management, Procurement, and Financial Management. C. Data Reporting, Financial Management, and Inventory Management. D. Inventory Management, Assessment/Evaluation, and Financial Management. EDGAR Plus Book Part 74 Table of Contents, page 3

26. Question 24: 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. A. True B. False EDGAR Plus Book Allocability OMB Circular A-21 Appendix C(4), page 238 OMB Circular A-122 Appendix A(4), page 323

27. Question 25: The cost of housing and personal living expenses for a nonprofit organizations officers is an allowable direct cost if necessary for the performance of the grant and if grantor approval is received. A. True B. False EDGAR Plus Book OMB Circular A-122, Appendix B(20), page 339

28. Question 26: 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. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.24, page 12

29. Question 27: When postsecondary institutions or non-profits generate program income in a federal education program, they can use the program income as follows: A. Add the program income to the program budget that earned the income. B. Use the program income to finance the non-Federal share of the program. C. Deduct the program income, after costs, from the program award. D. All of the above. EDGAR Plus Book 34 C.F.R. § 74.24, page 12

30. Question 28: A physical inventory of all equipment must be taken: A. Yearly B. Once every two years C. Once every six months D. Whenever you feel like it EDGAR Plus Book 34 C.F.R. § 74.34(f)(3), page 17

31. Question 29: If equipment is missing upon inventory review, the grantee or subgrantee must: A. Simply remove it off the inventory list. B. Buy a new piece of equipment quickly. C. Interview every staff member until one confesses to the theft. D. Investigate. EDGAR Plus Book 34 C.F.R. § 74.34(f)(3), page 17

32. Question 30: A conflict of interest in procurement arises when the following persons have a financial or other interest in a firm that is selected for an award: A. An employee, officer, or agent of the grantee or subgrantee. B. An employee, officer, or agent of the grantee or subgrantee and his/her immediate family members. C. An employee, officer, or agent of the grantee or subgrantee and his/her partners. D. All of the above. EDGAR Plus Book 34 C.F.R. § 74.42, page 19

33. The End! What Grade Did You Get?? This presentation is intended solely to provide general information and does not constitute legal advice or a legal service. This presentation does not create a client-lawyer relationship with Brustein & Manasevit and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct. Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit does not create an attorney-client relationship with Brustein & Manasevit. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. 33