CGMS Practice Exam | 2025/2026 Latest Edition |
Verified Questions with 100% Correct Answers |
Graded A+
The Certified Grants Management Specialist (CGMS) practice exam for 2025/2026
provides 150 fully verified questions with 100% correct answers. Designed to mirror the actual
testing experience, this resource ensures candidates gain the knowledge, skills, and confidence
needed to achieve CGMS certification. The exam includes 150 questions, aligning with the
comprehensive scope of professional grants management certifications.
Exam Coverage
✔ Federal grants regulations, policies, and compliance (Uniform Guidance, OMB Circulars)
✔ Pre-award processes: funding opportunities, applications, and eligibility
✔ Post-award management: monitoring, reporting, and compliance requirements
✔ Financial management: allowable costs, budget controls, internal controls
✔ Audit requirements, risk assessment, and corrective actions
✔ Ethical considerations and professional standards in grants management
✔ Closeout and record retention procedures
Answer Format
Correct answers are highlighted in bold green. Each item is paired with a rationale to
strengthen understanding of grants management principles and ensure exam readiness.
1. What is the primary regulation governing federal grants management?
a) OMB Circular A-87
b) Uniform Guidance (2 CFR Part 200)
c) FAR Part 31
d) OMB Circular A-133
b) Uniform Guidance (2 CFR Part 200)
Rationale: The Uniform Guidance (2 CFR Part 200) consolidates federal grant regulations,
superseding older OMB Circulars like A-87 and A-133 (CGMS Core Knowledge).
2. What is a key requirement during the pre-award phase of a federal grant?
a) Submitting financial reports
b) Conducting a risk assessment
c) Verifying applicant eligibility
d) Performing a single audit
c) Verifying applicant eligibility
Rationale: Pre-award processes include ensuring applicants meet eligibility criteria per funding
opportunity guidelines (2 CFR 200.204).
,3. What is the purpose of a Data Universal Numbering System (DUNS)
number?
a) Track grant expenditures
b) Identify organizations applying for federal grants
c) Monitor subrecipient performance
d) Verify audit compliance
b) Identify organizations applying for federal grants
Rationale: A DUNS number uniquely identifies entities for federal funding (2 CFR 200.32).
4. According to 2 CFR 200, what is an allowable cost?
a) A cost that is reasonable, allocable, and complies with regulations
b) A cost approved by the project manager
c) A cost exceeding budget limits
d) A cost for unapproved activities
a) A cost that is reasonable, allocable, and complies with regulations
Rationale: Allowable costs must meet criteria of reasonableness, allocability, and compliance (2
CFR 200.403).
5. What is the purpose of a single audit?
a) Review project outcomes
b) Ensure compliance with federal grant requirements
c) Approve grant applications
d) Monitor subrecipient contracts
b) Ensure compliance with federal grant requirements
Rationale: Single audits verify compliance for organizations expending $750,000+ in federal
funds annually (2 CFR 200.501).
6. What is a key component of post-award grant management?
a) Submitting a grant application
b) Monitoring performance and compliance
c) Conducting a pre-award risk assessment
d) Developing a funding opportunity
b) Monitoring performance and compliance
Rationale: Post-award management includes tracking progress and ensuring adherence to
regulations (2 CFR 200.328).
7. What document outlines specific grant terms and conditions?
a) Budget narrative
b) Notice of Award (NOA)
c) SF-424 form
d) Audit report
b) Notice of Award (NOA)
Rationale: The NOA details the grant’s terms, conditions, and obligations (2 CFR 200.210).
8. What is the minimum record retention period for federal grant records?
a) 1 year
, b) 3 years
c) 5 years
d) 7 years
b) 3 years
Rationale: 2 CFR 200.333 requires records be retained for at least 3 years after grant closeout.
9. What is a key ethical consideration in grants management?
a) Maximizing grant funds
b) Avoiding conflicts of interest
c) Expediting project timelines
d) Reducing reporting requirements
b) Avoiding conflicts of interest
Rationale: Ethical standards require transparency and avoiding personal gain (CGMS
Professional Standards).
10. What is the purpose of a cost allocation plan?
a) Track project milestones
b) Distribute shared costs across programs
c) Monitor subrecipient performance
d) Approve grant applications
b) Distribute shared costs across programs
Rationale: Cost allocation plans ensure equitable distribution of indirect costs (2 CFR 200.405).
11. What is the primary purpose of a subrecipient monitoring plan?
a) Approve subrecipient budgets
b) Ensure compliance with federal requirements
c) Develop grant applications
d) Conduct financial audits
b) Ensure compliance with federal requirements
Rationale: Monitoring ensures subrecipients adhere to grant terms (2 CFR 200.331).
12. What is an unallowable cost under Uniform Guidance?
a) Salaries for project staff
b) Alcoholic beverages
c) Equipment maintenance
d) Travel for project meetings
b) Alcoholic beverages
Rationale: Alcoholic beverages are explicitly unallowable (2 CFR 200.423).
13. What form is used for federal grant financial reporting?
a) SF-424
b) SF-425
c) SF-270
d) SF-269
b) SF-425
Rationale: The SF-425 Federal Financial Report tracks expenditures (2 CFR 200.327).
Verified Questions with 100% Correct Answers |
Graded A+
The Certified Grants Management Specialist (CGMS) practice exam for 2025/2026
provides 150 fully verified questions with 100% correct answers. Designed to mirror the actual
testing experience, this resource ensures candidates gain the knowledge, skills, and confidence
needed to achieve CGMS certification. The exam includes 150 questions, aligning with the
comprehensive scope of professional grants management certifications.
Exam Coverage
✔ Federal grants regulations, policies, and compliance (Uniform Guidance, OMB Circulars)
✔ Pre-award processes: funding opportunities, applications, and eligibility
✔ Post-award management: monitoring, reporting, and compliance requirements
✔ Financial management: allowable costs, budget controls, internal controls
✔ Audit requirements, risk assessment, and corrective actions
✔ Ethical considerations and professional standards in grants management
✔ Closeout and record retention procedures
Answer Format
Correct answers are highlighted in bold green. Each item is paired with a rationale to
strengthen understanding of grants management principles and ensure exam readiness.
1. What is the primary regulation governing federal grants management?
a) OMB Circular A-87
b) Uniform Guidance (2 CFR Part 200)
c) FAR Part 31
d) OMB Circular A-133
b) Uniform Guidance (2 CFR Part 200)
Rationale: The Uniform Guidance (2 CFR Part 200) consolidates federal grant regulations,
superseding older OMB Circulars like A-87 and A-133 (CGMS Core Knowledge).
2. What is a key requirement during the pre-award phase of a federal grant?
a) Submitting financial reports
b) Conducting a risk assessment
c) Verifying applicant eligibility
d) Performing a single audit
c) Verifying applicant eligibility
Rationale: Pre-award processes include ensuring applicants meet eligibility criteria per funding
opportunity guidelines (2 CFR 200.204).
,3. What is the purpose of a Data Universal Numbering System (DUNS)
number?
a) Track grant expenditures
b) Identify organizations applying for federal grants
c) Monitor subrecipient performance
d) Verify audit compliance
b) Identify organizations applying for federal grants
Rationale: A DUNS number uniquely identifies entities for federal funding (2 CFR 200.32).
4. According to 2 CFR 200, what is an allowable cost?
a) A cost that is reasonable, allocable, and complies with regulations
b) A cost approved by the project manager
c) A cost exceeding budget limits
d) A cost for unapproved activities
a) A cost that is reasonable, allocable, and complies with regulations
Rationale: Allowable costs must meet criteria of reasonableness, allocability, and compliance (2
CFR 200.403).
5. What is the purpose of a single audit?
a) Review project outcomes
b) Ensure compliance with federal grant requirements
c) Approve grant applications
d) Monitor subrecipient contracts
b) Ensure compliance with federal grant requirements
Rationale: Single audits verify compliance for organizations expending $750,000+ in federal
funds annually (2 CFR 200.501).
6. What is a key component of post-award grant management?
a) Submitting a grant application
b) Monitoring performance and compliance
c) Conducting a pre-award risk assessment
d) Developing a funding opportunity
b) Monitoring performance and compliance
Rationale: Post-award management includes tracking progress and ensuring adherence to
regulations (2 CFR 200.328).
7. What document outlines specific grant terms and conditions?
a) Budget narrative
b) Notice of Award (NOA)
c) SF-424 form
d) Audit report
b) Notice of Award (NOA)
Rationale: The NOA details the grant’s terms, conditions, and obligations (2 CFR 200.210).
8. What is the minimum record retention period for federal grant records?
a) 1 year
, b) 3 years
c) 5 years
d) 7 years
b) 3 years
Rationale: 2 CFR 200.333 requires records be retained for at least 3 years after grant closeout.
9. What is a key ethical consideration in grants management?
a) Maximizing grant funds
b) Avoiding conflicts of interest
c) Expediting project timelines
d) Reducing reporting requirements
b) Avoiding conflicts of interest
Rationale: Ethical standards require transparency and avoiding personal gain (CGMS
Professional Standards).
10. What is the purpose of a cost allocation plan?
a) Track project milestones
b) Distribute shared costs across programs
c) Monitor subrecipient performance
d) Approve grant applications
b) Distribute shared costs across programs
Rationale: Cost allocation plans ensure equitable distribution of indirect costs (2 CFR 200.405).
11. What is the primary purpose of a subrecipient monitoring plan?
a) Approve subrecipient budgets
b) Ensure compliance with federal requirements
c) Develop grant applications
d) Conduct financial audits
b) Ensure compliance with federal requirements
Rationale: Monitoring ensures subrecipients adhere to grant terms (2 CFR 200.331).
12. What is an unallowable cost under Uniform Guidance?
a) Salaries for project staff
b) Alcoholic beverages
c) Equipment maintenance
d) Travel for project meetings
b) Alcoholic beverages
Rationale: Alcoholic beverages are explicitly unallowable (2 CFR 200.423).
13. What form is used for federal grant financial reporting?
a) SF-424
b) SF-425
c) SF-270
d) SF-269
b) SF-425
Rationale: The SF-425 Federal Financial Report tracks expenditures (2 CFR 200.327).
