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Questioned Costs Reporting Check$25,000 Threshold (2 CFR 200.516)

What do these figures come to once the work is shown?

Whether known or likely questioned costs must be reported as an audit finding for a major program or a program not audited as major.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Report as audit finding
Yes
2 CFR 200.516(a)(3) and (a)(4)
Known questioned costs to report
$14,200
The finding reports known questioned costs, with context on prevalence
Drawn to one scale
Known questioned costs to report$14,200
Highest amount over $25,000$13,500
All results
MeasureResult
Report as audit findingYes
ReasonLikely questioned costs exceed $25,000
Known questioned costs to report
The finding reports known questioned costs, with context on prevalence
$14,200
Highest amount over $25,000$13,500
How this was worked out
Work shownrecomputed as you type
Major program: report known questioned costs when known or likely questioned costs > $25,000 for a type of compliance requirement
Not audited as major: report known questioned costs > $25,000

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Major program: report known questioned costs when known or likely questioned costs > $25,000 for a type of compliance requirement
  • Not audited as major: report known questioned costs > $25,000

How it works

2 CFR 200.516(a)(3) requires the auditor to report known questioned costs as an audit finding when either known or likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. The finding must give information that puts the questioned costs in perspective, such as how prevalent they are.

For a program not audited as major, 200.516(a)(4) requires reporting known questioned costs greater than $25,000 that the auditor becomes aware of, for example through audit follow-up. The auditor is not required to perform procedures on such programs, so this situation is uncommon.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What are likely questioned costs?

AU-C 935 .11 defines them as the auditor's best estimate of total questioned costs, not just the known questioned costs, developed by extrapolating from the audit evidence.

Is the threshold per program?

For major programs it is per type of compliance requirement, such as allowable costs or eligibility.

Is $25,000 the current threshold?

Yes. The eCFR text of 200.516, as revised effective October 1, 2024, states $25,000.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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