Sample Test 1

1. What best describes an allocable cost?
a. A cost that can be assigned to a project or an activity based on the relative benefits received
b. A cost that has an associated benefit to the F&A cost function being performed
c. A cost that is allowable and reasonable
d. A cost that is specifically allowed under the terms and conditions of federally sponsored project and by OMB Circular A-21

 2. Which of the following establishes audit requirements and defines federal responsibilities for implementing and monitoring these requirements for institutions of higher education and other nonprofit institutions receiving federal awards?
a. A-110
b. A-133
c. A-21

3. Which of the following provides information on patent rights and responsibilities currently applicable to universities and federally sponsored projects?
a. Commerce Business Daily
b. Code of Federal Regulations
c. Federal Register
d. CFDA

4. The university receives a grant from NIH that states the payment terms are DHHS Letter of Credit. This means:
a. The Office and Grants and Contracts/Finance will monitor and draw cash on expenditures as appropriate
b. Funds are received in full at the beginning of the project
c. The department should monitor expenditures and contact OGCA when funds should be drawn upon
d. The PI can request funds via a phone request to the sponsor

5. Which of the following is a reason for a federal contracting officer to send a “Show Cause” notice to a contractor?
a. The contractor’s services are no longer needed
b. The contractor has not responded within 5 days of receipt of a cure notice
c. The contractor fails to bill for services being performed within 60 days of the end of the contract
d. The contractor fails to perform the services within the time specified or any extension


6. Under OMB Circular A-21, time and effort reporting must be submitted to the institution a MINIMUM of once
a. Each calendar quarter
b. Monthly when classes are in session
c. Annually until the project is completed
d. Each calendar year


7. The Federal Animal Welfare Act applies to which of the following animal species?
a. Marine mammals and amphibians
b. All vertebrate animals
c. Reptiles and warm-blooded wild animals
d. Non-human primates and fish

8. According to federal regulations, an institutional review board must include:
a. An attorney
b. A member not otherwise affiliated with the institution
c. An ethicist
d. A member of the clergy

9. Which of the following best describes essential laboratory biosafety levels in medical research?
a. Biosafety cabinets class I, II, or III according to the agent under study
b. Basic and containment procedures designed to protect personnel and the environment
c. Special microbiological practices used to conduct procedures with high aerosol potential
d. Degrees of protection provided to personnel, environment, and community


10. The following would be considered an appropriate description of a cost transfer journal entry
a. To transfer cost of lab supplies incorrectly charged to other fund
b. To correct prior date entry error/transfer lab supplies, Fisher Scientific, PO#XXXXX, appropriate date
c. Transfer costs to Fisher Scientific
d. To correct error

ANSWERS
1.a  2. b. 3. b 4. a 5.  6. d 7. b. 8. b. 9. a. 10. b.