Budget management, donor compliance and sub-grant…

International NGO · Written recruitment test

Technical test (MCQ) · Officer level

Grants Officer

Duty station: Mopti region (Mali)
Time allowed: 30 min
Marks: 25 questions
Pass mark: 70 %
Profile: Officer, 2 to 5 years of experience

Instructions

The test has 25 questions and lasts 30 minutes. The timer starts when the test is opened and the test closes automatically when the time is up.
Each question has a single correct answer out of the four proposed. Some questions require a calculation or a judgement: read each question to the end.
A wrong or missing answer scores zero, with no negative marking. A calculator is allowed.
Any outside help (another person, shared document, artificial intelligence) is forbidden. The pass mark is 70% (18 correct answers out of 25).

Original practice test, built on the format of written tests used by United Nations agencies and international NGOs. The context and figures are fictitious.

Question 11 marks

The ceiling of a grant is USD 500,000, including indirect costs. The donor accepts 7% indirect costs calculated on direct costs. What is the maximum amount of direct costs you can budget?

A. USD 467,290 B. USD 465,000 C. USD 500,000 D. USD 535,000

Question 21 marks

Grant of USD 900,000 over 18 months. After 10 months, actual expenditure amounts to USD 420,000. What monthly burn rate is needed to spend the balance by the end?

A. USD 50,000 per month, i.e. the rate planned in the budget B. USD 48,000 per month, i.e. about 14% more than the current rate C. USD 60,000 per month, i.e. USD 18,000 less than the current rate D. USD 60,000 per month, i.e. about 43% more than the current average rate of USD 42,000

Question 31 marks

The agreement allows cumulative reallocations between lines of up to 15% of the total budget without prior approval. The total budget is USD 750,000. You plan two reallocations of USD 60,000 and USD 45,000. Is approval required?

A. Yes: USD 105,000 exceeds 15% of the total budget B. No: the cumulative USD 105,000 represents 14% of the total budget, below the 15% ceiling C. No: only the largest reallocation counts, i.e. 8% D. Yes: every reallocation requires prior approval

Question 41 marks

Two staff positions with a monthly salary of USD 1,200, with 22% social charges, are charged 60% to a 14-month project. What amount should be budgeted?

A. USD 24,595 B. USD 40,992 C. USD 20,160 D. USD 29,515

Question 51 marks

A partner received an advance of USD 80,000. It accounts for USD 62,000 of expenditure, of which USD 4,500 is judged ineligible. What amount remains to be accounted for or refunded?

A. USD 18,000 B. USD 4,500 C. USD 22,500 D. USD 13,500

Question 61 marks

The budget provides USD 204,000 for 2,400 households at USD 85. Market analysis requires raising the transfer value to USD 95, with no additional funding. How many households can be assisted, and what should be done?

A. 2,400 households; no action is needed B. 2,147 households; no action, as the total budget does not change C. 2,683 households; inform the donor D. 2,147 households; inform the donor and obtain its agreement to the revised target

Question 71 marks

Office rent and utilities, USD 6,000 per month, are allocated according to the staff assigned to each grant: A, 9 people; B, 6; C, 5. What amount should be charged to grant A each month?

A. USD 2,000 B. USD 3,000 C. USD 2,700 D. USD 1,800

Question 81 marks

A donor advance, held in an interest-bearing account, has generated USD 1,250 in interest. How should it be treated?

A. Report it in the financial report and return it or reallocate it to the project according to the terms of the agreement B. Transfer it to the organisation's own funds C. Not report it, given the small amount D. Use it to cover ineligible expenditure

Question 91 marks

"Equipment" line: budget USD 120,000, actual expenditure USD 78,000, purchase orders issued but not yet paid USD 30,000. What amount is actually still available?

A. USD 42,000 B. USD 12,000 C. USD 90,000 D. USD 108,000

Question 101 marks

At the end of the project, actual direct costs amount to USD 560,000. Indirect costs are 7% of direct costs. The donor has paid USD 640,000. What balance should be refunded?

A. USD 80,000 B. USD 39,200 C. USD 44,800 D. USD 40,800

Question 111 marks

Option A: USD 180,000 for 1,200 households. Option B: USD 210,000 for 1,500 households. Both options are of equivalent quality. Which option has the lowest cost per household?

A. A: USD 150 per household against USD 175 for B B. B: USD 140 per household against USD 150 for A C. A, because its total cost is lower D. Both options have the same cost per household

Question 121 marks

A position at USD 2,000 per month was charged 100% to a grant for 12 months, whereas the timesheets show 70% of time on this project. What amount must be recharged elsewhere?

A. USD 16,800 B. USD 7,200 C. USD 6,000 D. USD 2,400

Question 131 marks

Which general criteria must an expense meet to be eligible under a humanitarian grant?

A. Be paid in cash and approved by the project manager B. Appear in the organisation's strategic plan C. Be below the tender threshold D. Be necessary for the project, reasonable, incurred during the eligibility period, compliant with the donor's rules and supported by valid evidence

Question 141 marks

The grant agreement contains anti-terrorism and sanctions clauses. You are signing a sub-grant agreement with a local partner. What should you do with these clauses?

A. Flow them down into the sub-grant agreement and make sure the partner has the means to apply them B. Leave them out, as only the prime recipient is concerned C. Mention them verbally at the kick-off meeting D. Replace them with a simple reference to the code of conduct

Question 151 marks

Which of these changes generally requires the donor's prior written approval?

A. Changing the supplier of office supplies B. Postponing a meeting by one week C. Transferring part of the activities to a geographical area not provided for in the agreement D. Correcting an accounting data entry error

Question 161 marks

An audit finds that there are no supporting documents for USD 14,000 of expenditure. What is the correct course of action?

A. Draw up new invoices dated in the period concerned B. Ignore the finding, as the amount is small compared with the budget C. Charge the expense to another, less closely monitored grant D. Search for and reconstitute the supporting documents; failing that, the expense is at risk of being disallowed and will have to be covered by unrestricted funds

Question 171 marks

Before responding to a call for proposals, which elements should a "go / no go" analysis examine?

A. Fit with strategy and needs, operational capacity, cost coverage (including indirect costs) and compliance risks B. Only the maximum amount of the call C. Only the submission deadline D. Only the donor's reputation

Question 181 marks

Which practice is in line with the Grand Bargain commitments on localisation?

A. Sharing part of the indirect costs with local partners and funding the strengthening of their institutional capacities B. Imposing zero indirect cost rates on local partners C. Transferring all security risks to local partners D. Limiting local partners to one-off service contracts

Question 191 marks

What is the purpose of the budget narrative attached to a proposal?

A. To summarise the humanitarian context B. To replace the logical framework C. To present the organisation's history D. To justify each line: basis of calculation, unit costs, quantities, charging percentage and link with activities

Question 201 marks

At closure, one line exceeds its budget by 18%, whereas the agreement allows only 10% flexibility without approval. No request was made. What is the main risk?

A. No risk, since the total budget has not been exceeded B. That the whole grant will be cancelled C. That the portion of the overspend beyond the authorised flexibility will be declared ineligible if the donor does not approve it retrospectively D. That only the narrative report will be rejected

Question 211 marks

A purchase order was issued before the project end date, but the goods will be delivered three weeks after it. As a general rule, how is this cost treated?

A. It is eligible, since the purchase order was issued in time B. It is ineligible unless the donor agrees: in principle, only goods and services received during the eligibility period can be charged C. It is eligible if the supplier backdates the delivery note D. It is automatically carried over to the next grant

Question 221 marks

The year 1 salary budget is USD 240,000, with a 4% annual increase applied each year to the previous year's amount. What total should be budgeted over 3 years?

A. USD 748,800 B. USD 749,184 C. USD 720,000 D. USD 777,600

Question 231 marks

A 3-month no-cost extension is granted. The available balance is USD 80,000 and fixed costs (staff, office) amount to USD 22,000 per month. What amount remains available for activities?

A. USD 58,000 B. USD 80,000 C. USD 14,000 D. USD 36,000

Question 241 marks

The donor requires logos at distribution sites, but the security analysis shows that visibility exposes staff and beneficiaries. What should you do?

A. Apply the visibility requirements despite the risks B. Remove the logos without informing the donor C. Ask the donor in writing for a waiver of the visibility requirements, explaining the risks D. Suspend distributions until the end of the project

Question 251 marks

The donor's rule requires three quotations from USD 5,000, whereas the organisation's internal policy requires them from USD 3,000. Which rule applies to a purchase of USD 4,000?

A. The donor's rule, because it is the donor that provides the funding B. Neither, as the purchase is urgent C. Whichever the project manager chooses D. The internal policy, because the stricter of the two rules must be applied

Other tests for this profession

Panel interview question for this profession

Describe a time when, while preparing a financial report, you found expenditure that was problematic under the donor's rules. What did you do?

Competency assessed : Compliance and expenditure review

What the panel expects : A methodical review of the entries, knowledge of the eligibility rules, precise amounts, a transparent decision (reclassification, retroactive approval, own funds), honest communication with the donor and a preventive measure.

Possible follow-up questions

How did you organise your review of the entries?
Who wanted to report this expenditure anyway, and how did you hold your position?
What did you put in place to prevent it from happening again?

Strong answer

In Chad, while preparing the six-monthly report for a EUR 450,000 grant, I reviewed the 312 entries for the period using a checklist drawn from the contract. I found three problems: EUR 4,800 of fuel from another project, a motorbike costing EUR 6,200 bought without the prior approval required above EUR 5,000, and EUR 1,150 of tax penalties. The coordinator wanted to report everything. I showed him the clauses and the audit risk, then I reclassified the fuel to the correct project, moved the penalties to own funds and drafted a request for retroactive approval for the motorbike, with the quotations and the justification. The donor accepted it within three weeks. The report went out on time, and the final audit found no ineligible costs. Since then, every purchase above EUR 3,000 goes through me before the purchase order.

Weak answer

"The accountant had included some questionable expenses, but the amounts were small, so I left them in so as not to delay the report." This answer shows ineligible costs being accepted, without analysis or informing the donor, with a risk of refunds and an unfavourable audit.

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Budget management, donor compliance and sub-grant management

Instructions

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