Finding Text
Criteria or Specific Requirement: In accordance with the grant agreements and applicable federal record
retention standards (2 CFR 200.334), recipients of federal funds must maintain all records pertinent to the
grant—including required progress and financial reports—for a minimum of three years from the date of
submission of the final expenditure report.
Condition and Context: Solvista Health did not retain certain key documents required to be retained
under federal regulation and specific grant agreements. Specifically, Solvista Health was unable to provide
quarterly reports, expenditure reimbursement packets submitted to the grantors, project expenditure
reports, or other grant-related records necessary to demonstrate compliance with federal reporting and
record retention standards under the federal programs.
Questioned Costs: N/A
Cause: Solvista Health did not implement adequate internal controls to ensure that submitted reports and
expenditure reimbursement packets were archived and retained in accordance with grant and federal
requirements.
Effect: The absence of these records could impede the ability to verify proper grant administration and
verify submitted expenditures were allowable costs incurred in accordance with the federal award
agreement, which could impact future funding eligibility. It also represents a potential noncompliance
with federal grant requirements.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: Solvista Health should strengthen its document retention policies and processes and
implement internal controls to ensure that all required grant reports are consistently reviewed, approved,
submitted, retained and retrievable for the required retention period.