Finding 570072 (2024-025)

Significant Deficiency
Requirement
BP
Questioned Costs
$1
Year
2024
Accepted
2025-07-02
Audit: 361368
Auditor: Dwc

AI Summary

  • Core Issue: Solvista Health claimed payroll costs for periods outside the approved budget timeframe, violating federal cost principles.
  • Impacted Requirements: Costs must be incurred within the approved period of performance as per 2 CFR 200.403(h); non-compliance leads to unallowable costs.
  • Recommended Follow-Up: Implement stronger controls to ensure all expenditures submitted for federal reimbursement comply with the period of performance requirements.

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.

Corrective Action Plan

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will implement a system of internal controls to ensure that expenses submitted for reimbursement under federal awards, especially personnel costs, are reviewed for compliance with regard to the period of performance requirements.

Categories

Questioned Costs Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 570052 2024-015
    Material Weakness
  • 570053 2024-016
    Material Weakness
  • 570054 2024-018
    Significant Deficiency
  • 570055 2024-019
    Significant Deficiency
  • 570056 2024-019
    Significant Deficiency
  • 570057 2024-019
    Significant Deficiency
  • 570058 2024-020
    Significant Deficiency
  • 570059 2024-020
    Significant Deficiency
  • 570060 2024-020
    Significant Deficiency
  • 570061 2024-021
    Significant Deficiency
  • 570062 2024-022
    Significant Deficiency
  • 570063 2024-022
    Significant Deficiency
  • 570064 2024-022
    Significant Deficiency
  • 570065 2024-022
    Significant Deficiency
  • 570066 2024-023
    Significant Deficiency
  • 570067 2024-023
    Significant Deficiency
  • 570068 2024-023
    Significant Deficiency
  • 570069 2024-023
    Significant Deficiency
  • 570070 2024-024
    Significant Deficiency
  • 570071 2024-024
    Significant Deficiency
  • 570073 2024-025
    Significant Deficiency
  • 570074 2024-026
    Significant Deficiency
  • 570075 2024-027
    Significant Deficiency
  • 570076 2024-027
    Significant Deficiency
  • 570077 2024-028
    Significant Deficiency
  • 570078 2024-029
    Significant Deficiency
  • 570079 2024-029
    Significant Deficiency
  • 570080 2024-029
    Significant Deficiency
  • 570081 2024-014
    Material Weakness
  • 570082 2024-014
    Material Weakness
  • 570083 2024-014
    Material Weakness
  • 570084 2024-014
    Material Weakness
  • 570085 2024-014
    Material Weakness
  • 570086 2024-014
    Material Weakness
  • 570087 2024-014
    Material Weakness
  • 570088 2024-014
    Material Weakness
  • 570089 2024-014
    Material Weakness
  • 570090 2024-014
    Material Weakness
  • 570091 2024-014
    Material Weakness
  • 570092 2024-014
    Material Weakness
  • 570093 2024-017
    Significant Deficiency
  • 570094 2024-017
    Significant Deficiency
  • 570095 2024-029
    Significant Deficiency
  • 1146494 2024-015
    Material Weakness
  • 1146495 2024-016
    Material Weakness
  • 1146496 2024-018
    Significant Deficiency
  • 1146497 2024-019
    Significant Deficiency
  • 1146498 2024-019
    Significant Deficiency
  • 1146499 2024-019
    Significant Deficiency
  • 1146500 2024-020
    Significant Deficiency
  • 1146501 2024-020
    Significant Deficiency
  • 1146502 2024-020
    Significant Deficiency
  • 1146503 2024-021
    Significant Deficiency
  • 1146504 2024-022
    Significant Deficiency
  • 1146505 2024-022
    Significant Deficiency
  • 1146506 2024-022
    Significant Deficiency
  • 1146507 2024-022
    Significant Deficiency
  • 1146508 2024-023
    Significant Deficiency
  • 1146509 2024-023
    Significant Deficiency
  • 1146510 2024-023
    Significant Deficiency
  • 1146511 2024-023
    Significant Deficiency
  • 1146512 2024-024
    Significant Deficiency
  • 1146513 2024-024
    Significant Deficiency
  • 1146514 2024-025
    Significant Deficiency
  • 1146515 2024-025
    Significant Deficiency
  • 1146516 2024-026
    Significant Deficiency
  • 1146517 2024-027
    Significant Deficiency
  • 1146518 2024-027
    Significant Deficiency
  • 1146519 2024-028
    Significant Deficiency
  • 1146520 2024-029
    Significant Deficiency
  • 1146521 2024-029
    Significant Deficiency
  • 1146522 2024-029
    Significant Deficiency
  • 1146523 2024-014
    Material Weakness
  • 1146524 2024-014
    Material Weakness
  • 1146525 2024-014
    Material Weakness
  • 1146526 2024-014
    Material Weakness
  • 1146527 2024-014
    Material Weakness
  • 1146528 2024-014
    Material Weakness
  • 1146529 2024-014
    Material Weakness
  • 1146530 2024-014
    Material Weakness
  • 1146531 2024-014
    Material Weakness
  • 1146532 2024-014
    Material Weakness
  • 1146533 2024-014
    Material Weakness
  • 1146534 2024-014
    Material Weakness
  • 1146535 2024-017
    Significant Deficiency
  • 1146536 2024-017
    Significant Deficiency
  • 1146537 2024-029
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $381,902
93.778 Medical Assistance Program $349,300
93.575 Child Care and Development Block Grant $334,148
21.027 Coronavirus State and Local Fiscal Recovery Funds $219,142
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $124,108
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $114,870
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $75,205
93.958 Block Grants for Community Mental Health Services $20,000
93.069 Public Health Emergency Preparedness $10,300