• Jillian Helding

Questioned vs. Unallowable Costs: There's a Difference


What the Regulations Say


The Uniform Guidance Sec. 2 CFR 200.84 states:


More properly known as an Improper Payment, an Unallowable Cost is any payment that meets one or more of the following conditions:

  • should not have been made,

  • was made in an incorrect amount under applicable requirements,

  • was made for ineligible goods, recipients, or services,

  • was made for goods or services not received, or

  • was made without adequate supporting documentation.

A Questioned Cost is not considered an Improper Payment until the transaction has been completely reviewed and is confirmed to be improper.


Uniform Guidance Sec. 2 CFR 200.410 states that Unallowable Costs must be refunded unless a Federal statute or regulation directs otherwise.


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