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.