Maryland Grant Management
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
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1. Which federal regulation establishes the uniform administrative
requirements, cost principles, and audit requirements for federal
awards commonly applied in grant management?
A. Federal Acquisition Regulation (FAR) Part 15
B. 2 CFR Part 200 (Uniform Guidance)
C. Sarbanes-Oxley Act
D. Davis-Bacon Act
Rationale: 2 CFR Part 200, known as Uniform Guidance, provides
comprehensive requirements for managing federal grants, including
financial administration, procurement, and audit standards.
2. What is the primary purpose of a grant agreement?
A. To create tax obligations for recipients
B. To establish employment contracts
C. To define the responsibilities, funding terms, and conditions between
,the grantor and recipient
D. To eliminate reporting requirements
Rationale: Grant agreements clearly specify program objectives, funding
conditions, reporting obligations, and compliance requirements for both
parties.
3. During the pre-award phase, which activity is most critical?
A. Conducting a final audit
B. Closing the grant account
C. Reviewing eligibility requirements and application guidelines
D. Issuing reimbursement checks
Rationale: Careful review of eligibility and application requirements helps
ensure that proposals meet funding criteria and reduces the risk of
disqualification.
4. What is a matching requirement in grant management?
A. A requirement to hire additional employees
B. A requirement to submit duplicate reports
C. A requirement that recipients contribute a specified share of project
costs
D. A requirement to purchase federal bonds
Rationale: Matching requirements obligate recipients to provide cash or in-
kind contributions toward project expenses as specified by the grant.
5. Which document typically outlines the budget and program narrative
submitted for grant funding?
A. Audit report
B. Procurement log
C. Grant application package
D. Payroll register
, Rationale: The grant application package contains the proposed project
scope, budget, objectives, and supporting documentation required by the
funder.
6. What is the primary purpose of a grant budget?
A. To determine employee promotions
B. To estimate and justify project costs necessary to achieve program
objectives
C. To establish tax rates
D. To determine stock valuations
Rationale: A grant budget demonstrates how funds will be used efficiently
and supports the achievement of project goals.
7. Which cost is generally considered an allowable direct cost?
A. Organization-wide executive salary unrelated to the project
B. General office rent allocated to all programs without methodology
C. Project-specific personnel expenses directly benefiting the grant
D. Corporate dividends
Rationale: Direct costs can be specifically identified with a particular grant-
supported activity and are necessary for project performance.
8. What is an indirect cost rate?
A. A tax assessment percentage
B. A method for allocating shared organizational costs to grants and
programs
C. A grant repayment schedule
D. A procurement penalty rate
Rationale: Indirect cost rates distribute common administrative and
operational expenses fairly across programs benefiting from those costs.
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
Download Pdf
1. Which federal regulation establishes the uniform administrative
requirements, cost principles, and audit requirements for federal
awards commonly applied in grant management?
A. Federal Acquisition Regulation (FAR) Part 15
B. 2 CFR Part 200 (Uniform Guidance)
C. Sarbanes-Oxley Act
D. Davis-Bacon Act
Rationale: 2 CFR Part 200, known as Uniform Guidance, provides
comprehensive requirements for managing federal grants, including
financial administration, procurement, and audit standards.
2. What is the primary purpose of a grant agreement?
A. To create tax obligations for recipients
B. To establish employment contracts
C. To define the responsibilities, funding terms, and conditions between
,the grantor and recipient
D. To eliminate reporting requirements
Rationale: Grant agreements clearly specify program objectives, funding
conditions, reporting obligations, and compliance requirements for both
parties.
3. During the pre-award phase, which activity is most critical?
A. Conducting a final audit
B. Closing the grant account
C. Reviewing eligibility requirements and application guidelines
D. Issuing reimbursement checks
Rationale: Careful review of eligibility and application requirements helps
ensure that proposals meet funding criteria and reduces the risk of
disqualification.
4. What is a matching requirement in grant management?
A. A requirement to hire additional employees
B. A requirement to submit duplicate reports
C. A requirement that recipients contribute a specified share of project
costs
D. A requirement to purchase federal bonds
Rationale: Matching requirements obligate recipients to provide cash or in-
kind contributions toward project expenses as specified by the grant.
5. Which document typically outlines the budget and program narrative
submitted for grant funding?
A. Audit report
B. Procurement log
C. Grant application package
D. Payroll register
, Rationale: The grant application package contains the proposed project
scope, budget, objectives, and supporting documentation required by the
funder.
6. What is the primary purpose of a grant budget?
A. To determine employee promotions
B. To estimate and justify project costs necessary to achieve program
objectives
C. To establish tax rates
D. To determine stock valuations
Rationale: A grant budget demonstrates how funds will be used efficiently
and supports the achievement of project goals.
7. Which cost is generally considered an allowable direct cost?
A. Organization-wide executive salary unrelated to the project
B. General office rent allocated to all programs without methodology
C. Project-specific personnel expenses directly benefiting the grant
D. Corporate dividends
Rationale: Direct costs can be specifically identified with a particular grant-
supported activity and are necessary for project performance.
8. What is an indirect cost rate?
A. A tax assessment percentage
B. A method for allocating shared organizational costs to grants and
programs
C. A grant repayment schedule
D. A procurement penalty rate
Rationale: Indirect cost rates distribute common administrative and
operational expenses fairly across programs benefiting from those costs.
