What term describes amounts that may be subject to refund to a grantor according to the auditor?

The term "questioned costs" specifically refers to amounts that an auditor identifies as potentially requiring a refund to the grantor. This can happen when the auditor has doubts about the allowability or proper documentation of certain expenses charged to the grant. Questioned costs may arise from various instances, such as incomplete records or expenses that do not meet the specific criteria set forth in the grant agreement or applicable regulations. Thus, the auditor raises these costs for further review or clarification, indicating they might not be acceptable expenditures as per the grant conditions.

In comparison, disallowed costs usually refer to expenses that are definitively deemed ineligible for reimbursement based on specific grant guidelines. Contingent costs, while they refer to potential future liabilities, do not directly apply to refund situations in grants. Unallowable costs are similar to disallowed costs, as they are costs incurred that the grantor has specified as not permissible, but they do not encompass amounts that are merely questioned and still may require additional substantiation before determining their status.