Allowable Costs
2 CFR Part 200.403 defines allowable costs for federal awards as those that are __________, _______________, and ________________.
What is necessary, reasonable, and allocable.
Recipients must have a _______plan for delineating the source of non-Federal share, the amounts applicable to the different sources, and the time frame for acquisition of the non-Federal share.
What is a multi-year financial plan?
Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring are the five components of ___________________.
What is COSO's Framework of Internal Controls?
Recipients must conduct a ______________ where they physically verify the existence and condition of equipment, and must do so at least _____________.
What is a Physical Inventory; every two years?
Recipients must undergo a Single Audit when they expend this amount or more in Federal funds from all sources in a year.
What is $1,000,000?
One of the factors affecting allowability of costs, are that costs must be accorded ______________ treatment. For example, a cost must not be assigned to a Federal award as adirect cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
What is consistent?
The recipient certifies that it has or will have available the proportionate amount of the ___________________ to pay promptly the costs incurred or that become due to implement the Award.
What is non-federal share or local match?
Adequate Internal Controls can provide ______________ assurance but not absolute assurance that errors or omissions will not occur or go undetected within the normal course of business.
What is reasonable?
Recipients must notify the FTA immediately when FTA-funded assets are _________________________.
What is lost, damaged, or stolen?
The section within the Single Audit report that lists the Federal expenditures by agency.
What is the Schedule of Expenditures of Federal Awards (SEFA)?
A cost is _____________ if it does not exceed an amount that a prudent person would incur under the circumstances prevailing when the decision was made to incur the cost.
What is reasonable?
Membership in any country club or social organization, or in organizations whose primary purpose is lobbying is considered _______________costs according to 2 CFR 200.454 (d-e).
What are unallowable costs?
Per Circular 5010 - Chapter VI , FTA recommends a recipient complete ________________ to evaluate its internal controls and financial management systems to ensure their effectiveness.
What is an internal control self-assessment?
If federally funded equipment which has met its minimum useful life is sold, the recipient may retain the full proceeds from the disposition if the selling price is less than ___________________.
What is $10,000?
A deficiency, or combination of deficiencies, in internal controls that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
What is a Significant Deficiency?
A cost is ______________ to a Federal award or other cost objective if the cost is assignable to that Federal award or other cost objective in accordance with the relative benefits received.
What is allocable?
Advanced payments received from FTA generally must be disbursed within __________________.
What is three business days?
Which COSO component is enacted by an entity's governing body and leadership to establish the tone at the top, regarding the importance of internal control.
What is Control Environment?
This plan is required of recipients with more than 100 vehicles to track the performance and condition of rolling stock.
What is a Transit Asset Management (TAM) plan?
The Single Audit package must be submitted within 30 days of receiving the auditor’s reports or ______ months after the audit period ends, whichever is earlier.
What is nine months?
The reasonableness and allocability of certain costs under Federal alwards may be difficult to determine. To avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, the recipient may seek the _________________ of the Federal agency before incurring the cost.
What is the prior written approval?
The applicant must deduct __________________ from operating costs to arrive at the net project cost of an operating assistance project.
What is farebox revenue?
The cost of internal controls should not exceed the __________________ of implementation.
What are benefits?
Recipients must have this system to ensure schedules for tasks such as inspections, repairs, of FTA-funded assets.
What is a maintenance plan?
In the Schedule of Findings and Questioned Costs section of the Single Audit, the recipient is responsible for implementing _________________.
What are Corrective Actions?