Finding Text
Criteria or Specific Requirement: In accordance with 2 CFR 200.403 and 200.405, costs charged to
federal awards must be necessary, reasonable, allocable to the program, and adequately documented. Only
allowable costs as defined by the terms and conditions of the award and the Uniform Guidance may be
charged to the grant.
Condition: During our testing of expenditures submitted by Solvista Health for reimbursement, we
identified instances where costs were charged to the grant that were not allowable under the Uniform
Guidance or the terms of the grant agreement. Specifically, unallowable employee meals were included
in travel reimbursement costs.
Context: Employees’ meal expenditures were submitted as allowable costs and as travel costs; however
employee meals are not an allowable expenditure per the grant agreement.
Questioned Costs: $842 consisting of unallowable meal expenditures.
Cause: Solvista Health did not have sufficient internal controls implemented to identify unallowed
expenditures, which were submitted for reimbursement.
Effect: Failure to submit unallowable expenditures for reimbursement may result in noncompliance with
the federal awarding agency and may result in the repayment of any unallowable expenditures to the
grantor.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend that Solvista Health implement internal controls to ensure review and
approval of grant-related expenditures. Additionally, we recommend regular training of staff on allowable
cost principles under Uniform Guidance.