Question

All federal financial assistance programs have specific compliance requirements. Which of the following is not an example of general compliance requirements for such assistance programs?

1. The eligibility of individuals or groups to participate in the assistance programs.
2. The allowability of costs for certain types of goods or services that may be acquired.
3. Maximum dollar amounts of expenditures incurred.
4. Matching fund requirements by the government entity receiving the assistance.

Answer 1

Answer: c

Maximum amount of expenditure is not a compliance requirement, since each financial assistance follows certain allowability of cost in which the maximum amount of grant is settled. This is based on eligibility of the party applying for the grant and the part’s cost sharing – suppose out of total 100% program expenses, the party should contribute 20% and then the grant should be given for 80% cost. Therefore, the maximum amount of expenditure incurred is irrelevant here.