In the DOL, in addition to the guidance contained in 2 CFR 200.84, a Questioned cost means a cost that is questioned by an auditor, Federal Project Officer, Grant Officer, or other authorized Awarding agency representative because of an audit or monitoring finding:
Which resulted from a violation or possible violation of a statute, regulation, or the terms and conditions of a Federal award, including for funds used to match Federal funds;
Where the costs, at the time of the audit, are not supported by adequate documentation; or
Where the costs incurred appear unreasonable and do not reflect the actions a prudent person would take in the circumstances.
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