Glossary

The award period is the authorized start and end dates during which a grant recipient may incur costs. Expenditures outside this window are unallowable regardless of when they are paid.

Carryover is unspent grant funds from one project year that a grantee requests to use in the next year. Most federal grants require prior approval unless the award terms provide automatic carryover authority.

Grant closeout is the formal administrative process by which a funder determines that all required work and administrative actions have been completed — it formally ends the grant.

The OMB Compliance Supplement is the annual OMB publication that guides single auditors on what to test for each federal program — defining compliance requirements, audit procedures, and program characteristics.

A grant drawdown is a request by a grantee to receive federal grant funds from a payment system — the grantee draws funds as expenses are incurred or in advance of anticipated needs.

A grant expenditure report documents actual costs incurred and charged to a grant during a specified period — it is the basis for reimbursement requests and the primary financial document in funder reporting.

The Federal Audit Clearinghouse (FAC) at fac.gov is where organizations required to have a single audit submit their audit reports and SF-SAC data collection form. The clearinghouse makes submissions publicly searchable.

Fund accounting is the accounting method used by nonprofits and governments to track resources by designated purpose — each fund has its own accounts and restrictions, keeping restricted money separate from unrestricted money.

A grant award letter is the official document confirming a grant — specifying award amount, project period, approved budget, and the terms and conditions under which the funds are awarded.

Grant compliance is the set of legal, regulatory, and contractual obligations a grant recipient must meet from award through closeout — covering restricted use, reporting, documentation, and record retention.

A grant pipeline is the tracked set of grant opportunities at different stages of pursuit — from identification through application, award, active management, and closeout.

A subaward is an award from a pass-through entity to a subrecipient to carry out part of a federal program — distinct from a procurement contract. Defined at 2 CFR 200.1.

In-kind contributions are non-cash resources — goods, services, or space — donated to a nonprofit or grant project. When required as match, they must be documented and valued at fair market value.

A management decision is the federal agency's written decision on a single audit finding — it accepts, modifies, or disputes the finding and sets a corrective action timeline. Required under 2 CFR 200.521.

A NICRA is a formal agreement between a federal agency and a nonprofit establishing the organization's approved indirect cost rate for reimbursement on federal grants.

A no-cost extension is an approved extension to a grant's period of performance that provides additional time to complete the work without providing additional funds.

Post-award grant management covers everything a nonprofit does after receiving a grant award: setup, expenditure tracking, compliance monitoring, reporting, and closeout.

Program income is gross income earned by a grantee from activities supported by a federal award — such as service fees, admission charges, or proceeds from items produced under the grant. How it is treated affects your SF-425 and budget.

A restricted fund holds contributions or grant awards legally limited to specific purposes, time periods, or both. The nonprofit cannot use the money for any other purpose without releasing or reclassifying the restriction.

The SF-425 is the standard form used to report financial status on most federal grants — capturing cumulative expenditures, unliquidated obligations, program income, and unobligated balance.

A single audit is an independent audit required when a non-federal entity expends $1,000,000 or more in federal awards in a fiscal year — covering financial statements and compliance with federal program requirements.

Grant spend-down is the process of expending all obligated grant funds by the end of the award period in accordance with the approved budget and grant terms. Low burn rate is a compliance risk, not just a planning problem.

Time and effort certification is the documentation process federal grantees use to verify that employees' actual effort matches the salary charges allocated to federal grants — required under 2 CFR 200.430.

Uniform Guidance (2 CFR Part 200) is the OMB framework that standardizes federal grant administration requirements for non-federal entities — covering cost principles, administrative requirements, and audit requirements.

The Annual Comprehensive Financial Report (formerly CAFR) is the government/quasi-government equivalent of audited financial statements, published under GASB.

The CFDA number — now called the Assistance Listing Number (ALN) — uniquely identifies a federal assistance program in the SAM.gov catalog.

A cognizant agency is the federal agency assigned to negotiate and approve a nonprofit's indirect cost rate on behalf of all federal awards.

Cost share is the portion of project costs not borne by the federal government — committed either as mandatory match or voluntary contribution.

The de minimis indirect cost rate is a federally-authorized flat rate nonprofits can claim without negotiation — recently raised from 10% to 15% MTDC.

A donor-advised fund is a charitable giving account held by a sponsoring 501(c)(3) that allows donors to recommend grants over time.

IRS Form 990 is the annual information return tax-exempt organizations file disclosing financials, governance, and programs.

The indirect cost rate is the percentage of indirect costs recoverable under a federal award, expressed as a ratio against a direct-cost base.

Matching funds are non-federal resources — cash or in-kind — a grantee must contribute to a federally funded project, documented at the award rate.

Net assets with donor restrictions are contributions a donor has limited by purpose, time, or both — tracked separately under FASB ASC 958.

Net assets without donor restrictions are resources a nonprofit can use at its own discretion — including board-designated amounts.

NTEE codes classify nonprofits by mission area under the National Taxonomy of Exempt Entities — used by IRS, funders, and state regulators.

Planned giving encompasses charitable gifts structured to take effect later — bequests, charitable remainder trusts, life insurance, and retirement-plan designations.

Program service revenue is income from activities that directly further a nonprofit's exempt purpose — reported on Form 990 Part VIII Line 2.

A questioned cost is an expenditure flagged by an auditor as potentially unallowable, unsupported, or unreasonable — subject to federal-agency determination.

A restricted contribution is a gift with donor-imposed stipulations limiting use by purpose or time, recognized under FASB ASC 958.

Schedule A establishes a 501(c)(3) organization's public charity status via the one-third public support test or 10% facts-and-circumstances test.

The Unique Entity Identifier replaced DUNS in 2022 and is required for all federal grant recipients via SAM.gov registration.

Unallowable costs are expenses 2 CFR 200 prohibits from federal award charges — including alcohol, bad debt, contributions, and lobbying.

UBTI is income a tax-exempt organization earns from a regularly-carried-on trade or business not substantially related to exempt purposes.

Functional expense allocation classifies every nonprofit expense by purpose — program services, management and general, and fundraising — under FASB ASC 958-205 and 958-720.

MTDC is the direct-cost base used to apply a nonprofit's indirect cost rate under 2 CFR 200. Definition, mandatory exclusions, and worked examples.

A pass-through entity is a non-federal entity that provides a sub-award to a subrecipient to carry out part of a federal program, defined at 2 CFR 200.1 with responsibilities under 2 CFR 200.332.

How pass-through entities classify a second-tier relationship as subrecipient or contractor under 2 CFR 200.331, and why the distinction drives monitoring obligations.