Certified Research Administrator Practice Exam

Which institutions are required to file a disclosure statement (DS-2) with the federal government?

1. Institutions that have significant material findings from a government audit

2. Institutions with more than $5M in capital expenditures

3. Institutions with more than $10M in capital expenditures

4. Institutions with more than $25M in capital expenditures

The correct answer is: Institutions with more than $25M in capital expenditures

The requirement for filing a disclosure statement (DS-2) with the federal government is linked to the financial thresholds established by federal regulations for institutions that receive federal funding. Institutions with more than $25 million in capital expenditures are mandated to file this disclosure statement to provide transparency and accountability regarding their financial activities, particularly concerning how federal funds are utilized. The DS-2 serves as a critical tool for the federal government to assess compliance with regulations pertaining to federal funding and ensure that institutions are appropriately managing their resources. This filing is important for maintaining the integrity of the federal funding process and for monitoring the expenditure of significant amounts of federal money. The other options denote lower thresholds, and while those institutions may have obligations or requirements, they do not meet the specific dollar amount that triggers the filing of a DS-2. Understanding these thresholds is essential for compliance with federal regulations in funding matters.