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GRANTS-MANAGEMENT-SPECIALIST-CGMS-
2026 EXAM COMPLETE (130) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
DETAILED RATIONALES.
GRANTS
Prepare for the Grants Management Specialist (CGMS) Exam with practice
questions covering grant administration, federal regulations, budgeting,
compliance requirements, financial management, risk assessment, and grant
monitoring processes. This study guide helps reinforce essential grants
management knowledge and supports effective certification exam preparation.
Designed to improve analytical and administrative skills while boosting
confidence in managing grant-funded programs. Suitable for grants managers,
program administrators, financial professionals, and individuals preparing for
CGMS certification.
Page 1
, Page 2 of 119
MULTIPLE CHOICE
Question 1
A university receives a federal grant with a 25% cost-sharing requirement. The PI proposes to use
unrecovered indirect costs (F&A) as the university's cost share. Under Uniform Guidance (2 CFR
200), which of the following must be demonstrated for this cost share to be allowable?
A) The unrecovered indirect costs are included in the approved budget and the PI has written approval
from the federal awarding agency.
B) The cost share is verifiable from the university's accounting records and the F&A rate used is the
negotiated rate for the current fiscal year.
C) The cost share is necessary and reasonable for project performance and the university can
demonstrate that it would have incurred the costs regardless of the grant.
D) The unrecovered indirect costs are treated as a cost share only if the grant agreement explicitly
permits their use and the costs are included in the final financial report.
Answer: B) The cost share is verifiable from the university's accounting records and the F&A rate
used is the negotiated rate for the current fiscal year.
Explanation: Under 2 CFR 200.306, cost sharing must be verifiable from the non-federal entity's
records, not included as a cost to the federal award, and necessary and reasonable. For
unrecovered indirect costs, they must be calculated using the federally negotiated rate
(current or provisional). Option A is incorrect because written approval is not required
for cost share included in the approved budget; however, the rate must be current.
Option C is too broad and not specific to indirect costs. Option D requires explicit
permission, which is not a standard requirement.
,Page 3 of 119
Page 2
, Page 4 of 119
Question 2
A grantee organization has a history of noncompliance with federal reporting deadlines and has
been placed on high-risk status. The federal awarding agency imposes additional prior approval
requirements. Which of the following actions by the grantee would most effectively address the
root cause of the noncompliance and potentially lead to removal of high-risk status?
A) Submitting all future reports at least two weeks before the deadline to demonstrate improved
timeliness.
B) Implementing an automated reporting system with built-in calendar reminders and requiring dual
sign-off by the PI and grants officer before submission.
C) Requesting a one-time extension for all outstanding reports to allow time to reorganize the grants
management office.
D) Hiring an external consultant to conduct a one-time review of past reports and recommend
improvements.
Answer: B) Implementing an automated reporting system with built-in calendar reminders and
requiring dual sign-off by the PI and grants officer before submission.
Explanation: High-risk status (2 CFR 200.207) requires corrective action that addresses systemic
issues. Option B implements a sustainable internal control (automated system + dual
approval) that directly addresses the root cause of late submissions. Option A is reactive
and does not fix underlying process deficiencies. Option C requests an extension, which
does not correct the problem. Option D is a one-time fix without ongoing improvement.
GRANTS-MANAGEMENT-SPECIALIST-CGMS-
2026 EXAM COMPLETE (130) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
DETAILED RATIONALES.
GRANTS
Prepare for the Grants Management Specialist (CGMS) Exam with practice
questions covering grant administration, federal regulations, budgeting,
compliance requirements, financial management, risk assessment, and grant
monitoring processes. This study guide helps reinforce essential grants
management knowledge and supports effective certification exam preparation.
Designed to improve analytical and administrative skills while boosting
confidence in managing grant-funded programs. Suitable for grants managers,
program administrators, financial professionals, and individuals preparing for
CGMS certification.
Page 1
, Page 2 of 119
MULTIPLE CHOICE
Question 1
A university receives a federal grant with a 25% cost-sharing requirement. The PI proposes to use
unrecovered indirect costs (F&A) as the university's cost share. Under Uniform Guidance (2 CFR
200), which of the following must be demonstrated for this cost share to be allowable?
A) The unrecovered indirect costs are included in the approved budget and the PI has written approval
from the federal awarding agency.
B) The cost share is verifiable from the university's accounting records and the F&A rate used is the
negotiated rate for the current fiscal year.
C) The cost share is necessary and reasonable for project performance and the university can
demonstrate that it would have incurred the costs regardless of the grant.
D) The unrecovered indirect costs are treated as a cost share only if the grant agreement explicitly
permits their use and the costs are included in the final financial report.
Answer: B) The cost share is verifiable from the university's accounting records and the F&A rate
used is the negotiated rate for the current fiscal year.
Explanation: Under 2 CFR 200.306, cost sharing must be verifiable from the non-federal entity's
records, not included as a cost to the federal award, and necessary and reasonable. For
unrecovered indirect costs, they must be calculated using the federally negotiated rate
(current or provisional). Option A is incorrect because written approval is not required
for cost share included in the approved budget; however, the rate must be current.
Option C is too broad and not specific to indirect costs. Option D requires explicit
permission, which is not a standard requirement.
,Page 3 of 119
Page 2
, Page 4 of 119
Question 2
A grantee organization has a history of noncompliance with federal reporting deadlines and has
been placed on high-risk status. The federal awarding agency imposes additional prior approval
requirements. Which of the following actions by the grantee would most effectively address the
root cause of the noncompliance and potentially lead to removal of high-risk status?
A) Submitting all future reports at least two weeks before the deadline to demonstrate improved
timeliness.
B) Implementing an automated reporting system with built-in calendar reminders and requiring dual
sign-off by the PI and grants officer before submission.
C) Requesting a one-time extension for all outstanding reports to allow time to reorganize the grants
management office.
D) Hiring an external consultant to conduct a one-time review of past reports and recommend
improvements.
Answer: B) Implementing an automated reporting system with built-in calendar reminders and
requiring dual sign-off by the PI and grants officer before submission.
Explanation: High-risk status (2 CFR 200.207) requires corrective action that addresses systemic
issues. Option B implements a sustainable internal control (automated system + dual
approval) that directly addresses the root cause of late submissions. Option A is reactive
and does not fix underlying process deficiencies. Option C requests an extension, which
does not correct the problem. Option D is a one-time fix without ongoing improvement.
