Finding Text
Criteria or Specific Requirement: In accordance with 2 CFR 200.302(b)(4) and 2 CFR 200.329(a), nonfederal
entities must establish internal controls to ensure accountability over federal funds and must
monitor grant activities to ensure compliance with applicable requirements and achievement of
performance goals. These responsibilities include assigning oversight roles and implementing processes
to track both financial and programmatic aspects of federal awards.
Condition and Context: During the audit, it was noted that Solvista Health did not have clearly defined
roles and responsibilities for monitoring grant activities. It was difficult to determine who within the
organization was responsible for overseeing compliance with grant requirements, tracking grant
performance, and ensuring proper financial management of the grant funds. When asked, management
was unable to identify designated individuals or a department currently accountable for these duties.
Questioned Costs: N/A
Cause: Solvista Health does not have an established formal grant management structure or assigned
responsibility for grant oversight.
Effect: Lack of properly designed and implemented internal controls, including policies and procedures
relating to accountability and oversight of federal programs, may result in noncompliance with federal
grant requirements under 2 CFR § 200.329 (monitoring and reporting program performance) and §
200.302 (financial management).
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: Solvista Health should design and implement internal controls related to federal
program grant management, including assignment of responsibility for grant oversight to specific
individuals or departments. This will help ensure that Solvista Health is in compliance with federal
regulations related to the monitoring and oversight of grant activities.