Table of Contents
Chapter 1 - Grant Accounting Fundamentals1
| Introduction | 1 |
| Grant Accounting Fundamentals | 1 |
| Grant Types and Funding Sources | 5 |
| Applicable Accounting Frameworks | 17 |
| Grant Award Review and Acceptance | 21 |
| Review Questions | 29 |
Chapter 2 - Key Elements of a Grant30
| Revenue Recognition | 30 |
| Fund and Restricted Accounting | 38 |
| Grant Budgeting | 45 |
| Allowable and Unallowable Costs | 51 |
| Review Questions | 60 |
Chapter 3 - Costs, Expenditures, and Cost Sharing61
| Direct and Indirect Costs | 61 |
| Payroll and Personnel Costs | 68 |
| Grant Expenditure Accounting | 71 |
| Cash Management and Reimbursement | 74 |
| Matching and Cost-Sharing Requirements | 80 |
| Review Questions | 86 |
Chapter 4 - Grant Controls and Analysis87
| Subrecipient and Contractor Relationships | 87 |
| Internal Controls Over Grants | 90 |
| Grant Reporting | 98 |
| Single Audits and External Reviews | 99 |
| Review Questions | 103 |
Chapter 5 - Grant Subsequent Events and Reporting104
| Grant Modifications | 104 |
| Grant Closeout | 109 |
| Financial Statement Presentation and Disclosures | 115 |
| Fraud Risks | 126 |
| Summary | 133 |
| Review Questions | 134 |
Answers to Review Questions135
Glossary143
Index145
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 10/23/2026
Course Exam Questions (online): 40 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Basic | None | Prior knowledge of governmental and nonprofit accounting |
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the need for grant accounting procedures.
- Recall the different classifications of grants.
- Recognize the characteristics of donor restrictions.
- Specify the contents of a grant master file.
- Recall the differing revenue recognition treatments for grants.
- Recognize the elements of grants that may be capitalized.
- Recall the situations in which grants may be considered permanent funding.
- Recognize the characteristics of typical cost reimbursement grants.
- Specify the reasons why reimbursement funding may have cash flow risk.
- Recall how to deal with advance cash from grantors.
- Recognize the reasons why portfolio-level grant monitoring is useful.
- Recall the grant reporting requirements under nonprofit and governmental accounting.
- Recognize the requirements for reporting grant revenue by a government entity.
- Specify why prohibited activities should be examined during an award review.
- Recall how to determine the activity date range for a grant.
- Recognize how to evaluate a grant's termination clause.
- Recall the criteria for recognizing revenue from a grant.
- Specify when to recognize a grant receivable.
- Specify the circumstances under which it makes sense to use a special revenue fund for a grant.
- Recall the typical contents of a grant budget, and the assumptions to use when doing so.
- Recognize how to develop a cash forecast for a grant.
- Recall the ethical considerations related to accepting and employing grant funds.
- Recognize the characteristics of unallowable costs.
- Specify the reasons why an organization should consistently apply similar costs.
- Recall how to construct an indirect-cost allocation base.
- Recognize what to do when a payroll allocation does not reflect reality.
- Recall why payroll charges should be reconciled to payroll records.
- Recognize the impact of open commitments on grant budgets.
- Specify the circumstances under which costs should be accrued.
- Recall the actions to be taken when reviewing a subrecipient invoice.
- Recall the actions that may be taken when grant-funded equipment is no longer needed.
- Recognize the indicators of different types of grant-related fraud.
