Final answer:
Institutions granted expanded authorities can incur pre-award costs up to 90 days before the federal grant's start date. This gives institutions the ability to effectively prepare and initiate grant activities, though spending should align with federal regulations.
Step-by-step explanation:
When expanded authorities are granted to an institution for a federal grant, the institution may incur pre-award costs up to a certain period before the grant's official start date. The correct answer to the student's question is: A) 90 days before the award start date. This means that institutions have the flexibility to allocate funds and begin project-related activities up to 90 days prior to the official commencement date of the grant without prior approval. It is important to note that such spending should be done with caution and in accordance with all applicable federal regulations to ensure future reimbursement from the grant funds.
It is worth mentioning that categorical grants are often preferred by the national government, providing them with greater control over spending. After the terrorist attacks on September 11, 2001, the creation of new grant programs, mainly categorical, was part of the response to enhance homeland security. However, among the new programs created, block grants were fewer in number.