Since audits with questioned cost findings can result in cost disallowances and require organizations to make repayments to NSF, organizations should understand what is required of the organization in accounting for Federal expenditures. Audit findings resulting in questioned costs which are related to "accounting" for federal funds are generally due to the following:

Lack of time records to support salary costs charged to awards (view timekeeping reviews).

Lack of documentation (invoices, canceled checks, etc.) to support and to determine other direct costs (materials, consultants, equipment) charged to awards (view accounting system reviews).

Indirect cost recoveries were in excess of those allowed by the type of awarded indirect cost rate (view budget and indirect cost reviews).