Schedule of findings and questioned costs

Definition

The schedule of findings and questioned costs, required by 2 CFR 200.515, has three parts. A summary of auditor's results states the opinion types, whether material weaknesses or significant deficiencies were found, and the major programs and the Type A threshold. Part two lists financial statement findings under GAGAS. Part three lists federal award findings and questioned costs, with the elements 200.516(b) requires, including criteria, condition, cause, possible asserted effect, and recommendations.

Why it matters in an audit or review

Findings in this schedule trigger management's corrective action plan and the pass-through entity's follow-up. Under 200.516(a) the auditor reports significant deficiencies and material weaknesses in internal control over major programs, material noncompliance related to a major program, known questioned costs when known or likely questioned costs exceed $25,000 for a type of compliance requirement of a major program, and known or likely fraud affecting a federal award. A finding that repeats one from the immediately prior audit is identified as a repeat, with the prior finding reference number.

Example

Illustrative: testing shows that a subrecipient was paid without the required monitoring review. The finding names the program, the criterion, the number of subrecipients affected, the questioned cost, and the cause, and management responds in its corrective action plan.

Common mistakes

Writing findings without all required elements or omitting the Assistance Listing number.

FAQ

Does management respond to findings?

Yes. Management prepares a corrective action plan and a summary schedule of prior audit findings.

Sources

• 2 CFR 200.515, Audit reporting: https://www.ecfr.gov/current/title-2/section-200.515
• 2 CFR 200.516, Audit findings: https://www.ecfr.gov/current/title-2/section-200.516
• 2 CFR 200.511, Audit follow-up (summary schedule of prior audit findings; corrective action plan)