The finance officer of a small city has heard that certain items of cost may be allowable under federal grants, even though they were not incurred specifically for the grant. To what source could the finance officer go to determine what costs are allowable under federal grants? Why do you think the federal government specifies the allowability of costs?
What will be an ideal response?
The OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, provides guidance to state and local governments on cost principles for federal grants. Also referred to as the "super circular," this document lists allowable and unallowable costs for federal grants and contracts. For example, governments will find that depreciation on equipment used on the grant is an allowable cost, alcoholic beverages are an unallowable cost, and advertising may be an allowable cost under certain restricted conditions. Federal agencies that have a number of grant programs, or large amounts of money to grant, also may publish guidelines for grantee use. Since federal grants are awarded for specific purposes and funded with public resources, it is important that the use of the resources be controlled. As discussed in Chapter 11, federal grants are monitored via single audits.
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A) Balance Sheet debit column B) Balance Sheet credit column C) Income Statement debit column D) Income Statement credit column
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A) Primary data B) Secondary data C) Online data D) Survey data
What is the least accurate statement about oral presentations?
A) Until you are promoted to a managerial role, you will probably not have to give presentations. B) College provides many opportunities to improve your presentation skills. C) A recent study shows that a key predictor of success and upward mobility is how much you enjoy public speaking and how effective you are at it. D) Most people have some apprehension when speaking in public.