Finding Text
Criteria or Specific Requirement: In accordance with 2 CFR 200.403(h), costs must be incurred during
the approved budget period or period of performance, unless specifically authorized otherwise by the
federal awarding agency. Charging costs incurred outside the period of performance is unallowable and
does not comply with federal cost principles.
Condition: During our testing of payroll expenditures charged to the federal award, it was determined
that Solvista Health claimed reimbursement for payroll costs incurred outside the approved period of
performance. Specifically, for one grant, payroll expenditures were claimed for time worked between June
26, 2023 and June 30, 2023, although the awards period of performance began on July 1, 2023.
Additionally, for another grant tested, payroll expenditures were claimed for time worked between
October 30, 2023 and October 31, 2023, despite the award’s period of performance not beginning until
November 1, 2023.
Context: Actual payroll expenditures submitted included payroll expenditures that were outside the
period of performance, which overstated the payroll expenditures applied to the grant.
Questioned Costs: $7,522 consisting of payroll expenditures submitted for reimbursement for
expenditures incurred outside of the approved period of performance.
Cause: Solvista Health did not have adequate controls to ensure that expenditures charged to the federal
program were incurred within the period of performance.
Effect: Solvista Health claimed reimbursement for payroll costs incurred outside of the approved period
of performance, resulting in unallowable costs being charged to this award.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend Solvista Health design and implement controls to ensure that
expenditures submitted for reimbursement under federal awards are properly reviewed for compliance
with regard to the period of performance requirements.