Certified Research Administrator Practice Exam

Which OMB Circular refers to administrative requirements for grants and agreements?

1. A-21

2. A-87

3. A-110

4. A-122

The correct answer is: A-110

The OMB Circular that specifically addresses administrative requirements for grants and agreements is indeed the one identified, which is A-110. This circular was first issued to streamline administrative requirements and provide a consistent framework across federal agencies for managing grants and cooperative agreements. A-110 is significant because it establishes rules regarding the management of federal grants, including guidelines on eligible costs, financial management, reporting, record retention, and project performance. By having a uniform set of requirements, the circular helps organizations manage their obligations appropriately and ensures accountability while minimizing the administrative burden. Other options relate to different aspects of federal grants and agreements. For instance, A-21 pertains to the cost principles for educational institutions, A-87 focuses on the cost principles for state and local governments, and A-122 addresses cost principles for nonprofit organizations. Each of these circulars serves a specific purpose related to financial guidance, but none specifically target the administrative requirements in the way that A-110 does.