Auditing and Reporting Requirements: If a Reporting Entity had unallowable costs identified during an audit, can these unallowable or offset costs be accounted for in a subsequent reporting period?

If a Reporting Entity had unallowable costs identified during an audit, can these unallowable or offset costs be accounted for in a subsequent reporting period?

Yes. Due to the cumulative nature of lost revenues, any lost revenues adjustments may be made in subsequent reporting periods. If an unallowable expense was “replaced” by unreimbursed lost revenues for use of funds purposes, the Reporting Entity should ensure that the lost revenues reported in subsequent reports are deducted to avoid “double dipping.” Reporting Entities should maintain appropriate documentation to support the deduction from the report.

(Updated 2/16/2024)

Auditing and Reporting Requirements

Date Last Reviewed:

February 2024

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Auditing and Reporting Requirements: If a Reporting Entity had unallowable costs identified during an audit, can these unallowable or offset costs be accounted for in a subsequent reporting period?