Questioned Cost Law and Legal Definition

Questioned Cost refers to a cost that is questioned by the office for the following reasons:

  • an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds.
  • a finding that, at the time of the audit, such cost is not supported by adequate documentation.
  • a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.