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. Question 1: 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

4. 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. 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

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

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

7. Question 5: 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

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

9. Question 7: 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

10. Question 8: A cost is reasonable if: A. It is on sale. B. It 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

11. Question 9: 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(3), page 238 OMB Circular A-122, Appendix A (3), page 323

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

13. 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: 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

14. 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. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.24, page 12

15. Question 13: 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

16. Question 14: 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

17. 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: 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

18. 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. A. True B. False EDGAR Plus Book 34 C.F.R. § 74.25, page 13

19. Question 17: 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

20. Question 18: 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

21. Question 19: 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

22. Question 20: 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

23. Question 21: 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 the destination. EDGAR Plus Book 34 C.F.R. § 76.707, page 87

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 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: 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: A. Me (an employee of the grantee). B. My son/daughter. C. My husband/wife’s company is selected. D. All of the above. EDGAR Plus Book 34 C.F.R. § 74.42, page 19

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

27. Question 25: 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

28. Question 26: 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

29. Question 27: 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

30. 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. 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

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

32. Question 30: 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

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