1. (a) As used in sections 4-236-18 through 4-236-30, inclusive, of the Regulations of Connecticut State Agencies:

   1. (1) "Auditee" means any nonstate entity, which is required to be audited pursuant to section 4-231 of the Connecticut General Statutes;

   2. (2) "Questioned cost " means a cost that is questioned by the independent auditor because of an audit finding:

      1. (1) Which resulted from a violation or possible violation of a provision of law, regulation, contract, grant, or other agreement or document governing the use of State financial assistance, including funds used to match state financial assistance;
      2. (2) Where the costs, at the time of the audit, are not supported by adequate documentation; or (3) Where the costs incurred appear unreasonable, unrelated, or do not reflect the actions a prudent person would take in the circumstances; and (3) "Working papers" has the same meaning as in Generally Accepted Government Auditing Standards (GAGAS).
2. (b) For the purpose of said sections 4-236-18 through 4-236-30, inclusive, the definitions in section 4-230 of the Connecticut General Statutes are also applicable.

(Adopted effective April 2, 2001)