Overview: The FEMA IS-1012 course was published on 2/28/2019 to provide an overview of Direct Administrative Costs reimbursement by the Public Assistance Program.
By the end of this IS-1012, recipients and sub-recipients will understand regulatory guidance and policy concerning Direct Administrative Costs as well as considerations for tracking, reporting, and claiming Direct Administrative Costs directly tied to Public Assistance Grants.
FEMA IS-1012 test answers
Each time this test is loaded, you will receive a unique set of questions and answers. The test questions are scrambled to protect the integrity of the exam.
Question 1. What are the most likely consequences if FEMA determines over-qualified personnel were assigned to a task claimed as a Direct Administrative Cost?
A. FEMA will partially reimburse the Public Assistance claim while the inappropriate costs are reviewed.
B. FEMA will reimburse the Public Assistance claim, but not the Direct Administrative Cost claim when there are inappropriate costs.
C. FEMA will not reimburse a Public Assistance claim that includes unreasonable Direct Administrative Costs.
D. FEMA will only reimburse a cost equivalent to an appropriately-skilled person performing the task.✅
Question 2. What is the fixed Direct Administrative Cost award in the pilot program based on?
A. The applicant’s total documented Direct Administrative Cost costs for each eligible project.
B. The applicant’s (version 0) total eligible project cost estimates for emergency and permanent work.
C. The applicant’s total documented Direct Administrative Cost costs for emergency and permanent work.
D. The applicant’s total eligible project costs for emergency and permanent work.✅
Question 3. Which of the following is a difference between the traditional method of claiming Direct Administrative Cost and the Direct Administrative Cost pilot program?
A. The tasks eligible for Direct Administrative Cost reimbursement are different.
B. The Direct Administrative Cost reimbursement awarded through the pilot program is not fixed.
C. The Direct Administrative Cost pilot program can only be used for small projects.
D. The Direct Administrative Cost pilot program consolidates all Direct Administrative Cost claims into one Project.✅
Question 4. For how long can new Version (0) Projects be added to the consolidated Direct Administrative Cost Project when using the pilot program?
A. 3 months✅
B. 2 years
C. 6 months
D. 1 year
Question 5. If a cost meets the criteria for both direct and indirect administrative costs, which of the following is the most appropriate course of action?
A. Apply for reimbursement of the cost as a direct administrative expense whenever it is possible to do so.
B. Apply for reimbursement of the cost as either a direct or indirect administrative expense, but not both.
C. Apply for reimbursement of half the cost as a direct administrative expense and the other half as an indirect administrative expense.✅
D. Apply for full reimbursement of the cost as both a direct and indirect expense.
Question 6. If a project is ineligible for Public Assistance reimbursement, what is the effect on a Direct Administrative Cost claim for that project?
A. The Direct Administrative Cost claim will not be reimbursed.✅
B. The Direct Administrative Cost claim must be attached to another project.
C. Only the Direct Administrative Cost claim will be reimbursed.
D. The Direct Administrative Cost claim will be partially reimbursed.
Question 7. Documentation of contracts, change orders, and invoices are required when claiming direct administrative costs for:
A. Equipment purchases or rentals
B. Administrative consultants✅
C. All personnel
D. Regular staff
Question 8. Why would organizing damage sites into logical groups be categorized as an indirect administrative cost and not a direct one?
A. Because it is a general administrative activity not linked to a grant or any Public Assistance project.
B. Because it is an administrative expense directly related to a grant for a particular Public Assistance project.✅
C. Because it is an administrative activity that is part of a task supporting multiple Public Assistance projects.
D. Because it is an administrative activity whose costs are difficult to itemize and document in detail.
Question 9. Which of the following is an advantage of the Direct Administrative Cost pilot program?
A. It allocates Direct Administrative Cost funding to individual projects based on their actual documented eligible costs.
B. It can be used in conjunction with the conventional method of claiming Direct Administrative Cost.
C. It establishes a budget for Direct Administrative Cost associated with eligible Public Assistance projects to better manage relevant costs.✅
D. It expands the range of tasks and expenses that are eligible for Direct Administrative Cost reimbursement.
Question 10. Direct Administrative Cost claims that include administrative consultants require documentation of contracts, change orders, invoices, and the procurement policy, as well as:
A. Breakdowns of blended rates.✅
B. Complete organizational charts.
C. Procurement and bid documents.
D. Records of prior contracts.
Question 11. How does FEMA determine the reasonableness of a task’s level of effort when reviewing a Direct Administrative Cost claim?
A. By comparing the claimed level of effort to that required to perform similar functions in other claims for the same disaster.✅
B. By comparing the claimed level of effort to that required by FEMA staff to perform similar functions.
C. By comparing the claimed level of effort to that required to perform similar functions in past claims.
D. By comparing the claimed level of effort to the standards in the FEMA rubric developed for reviewing Public Assistance claims.
Question 12. How should relevant consultant activities and expenses be treated when applying for Direct Administrative Cost?
A. Only bidding and contract information need to be documented in detail for consultants.
B. Expenses from consultants are never eligible for Direct Administrative Cost reimbursement.✅
C. The same standards for tracking and logging activities and expenses apply to both regular staff and consultants.
D. Consultant activities and expenses may be either recorded in detail or combined in blended rates.
Question 13. All of the following should be included when documenting labor, except:
B. Descriptions of work activities
C. Rate of pay
Question 14. This is utilized when an Applicant claims Direct Administrative Costs as a line item cost in each Project within Grants Portal.
A. The Public Assistance Alternative Procedures Direct Administrative Cost Pilot Program
B. The Federal Direct Administrative Cost Program
C. The Traditional Method✅
D. The Direct Administrative Cost Reimbursement Program
Question 15. What is the most important difference between direct and indirect administrative costs?
A. Direct administrative costs are directly related to eligible projects, while indirect costs are related to ineligible projects.✅
B. Direct administrative costs are reimbursed through Public Assistance grants, while indirect administrative costs are part of the organizational budget.
C. Direct administrative costs are directly related to one project, while indirect administrative costs are related to multiple projects.
D. Direct administrative costs come from managing PA grants and grant applications, while indirect administrative costs come from managing all program activities.
Question 16. Why can’t blended rates be included in Direct Administrative Cost claims?
A. Blended rates don’t provide enough detail for FEMA to form an accurate impression of actual costs and activities.
B. Blended rates include an additional percentage of profit, while Direct Administrative Cost reimbursement is limited to actual costs.
C. Blended rates sometimes include travel expenses, which are never eligible for reimbursement as Direct Administrative Costs.✅
D. Blended rates often include personnel salary, which is never eligible for reimbursement as a Direct Administrative Cost.
Question 17. Why would developing a detailed site-specific damage description be categorized as a direct administrative cost and not an indirect one?
A. Because it is an administrative expense directly related to a grant for a particular Public Assistance project.✅
B. Because it is an administrative activity whose costs are difficult to itemize and document in detail.
C. Because it is a general administrative activity not linked to a grant for any particular Public Assistance project.
D. Because it is an administrative activity that is part of a larger task supporting multiple Public Assistance projects.
Question 18. What is the most likely consequence of a lack of sufficiently detailed documentation in a DAC claim?
A. A new Project Worksheet must be submitted with sufficient detail to support any Direct Administrative Cost claims.
B. Direct Administrative Cost reimbursement will be limited to what has been adequately documented, or what FEMA deems reasonable for the tasks.
C. FEMA will not reimburse any Direct Administrative Cost claims that include sufficient detail and documentation.
D. No Direct Administrative Cost reimbursement will be allocated until the appropriate documentation has been submitted at closeout.✅
Question 19. What are the two main factors that impact whether a Direct Administrative Cost claim is eligible for Public Assistance reimbursement?
A. The reasonableness of the claim and how complete the task breakdown is.✅
B. The promptness of the claim and how detailed the cost breakdown is
C. The amount of the claim and whether the costs include contractor expenses
D. The relationship of the claim to a specific project and that project’s eligibility
Question 20. Which of the following strategies would be helpful in making sure all of the relevant information is included in the Direct Administrative Cost claim?
A. Calculating blended rates for labor, expenditures, and activities
B. Waiting until activities are completed at project closeout to organize them
C. Tracking relevant expenditures and activities separately as they occur✅
D. Generalizing activity descriptions to make documentation more concise