Finding Text
Criteria or Specific Requirement: In accordance with 2 CFR 200.305(b), when entities are on a cost
reimbursement basis, payments must be requested only for allowable costs already incurred, and such
requests should be made in a timely manner to avoid cash flow issues and ensure proper stewardship of
federal funds.
Condition and Context: During our testing, we determined that Solvista Health incurred allowable
expenditures under the federal awards but did not submit claims for reimbursement in a timely manner.
Specifically, expenditures were recorded and reported internally, but Solvista Health did not initiate the
cost reimbursement requests in accordance with the timing of those expenditures.
Questioned Costs: N/A
Cause: Solvista Health lacks sufficient oversight or adequate internal controls to ensure timely submission
of reimbursement requests corresponding with incurred expenditures.
Effect: Failure to request reimbursement in a timely manner can impair cash flow, result in
underutilization of available federal funds within the grant period, and indicate noncompliance with
requirements under Uniform Guidance.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend that Solvista Health implement formal procedures as well as assign
an individual responsible for submitting reimbursement requests on a regular and timely basis after
expenditures are incurred. This will promote compliance with federal requirements and ensure Solvista
Health benefits fully from available federal grant funding.