Title: Reporting Entity
Accounting Policies: The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or the Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. No federal or state financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center is not eligible to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has previously received a negotiated indirect cost rate for its federal awards.
The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards.
The information in the Schedule of Expenditures of Federal and State Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of Expenditures of Federal and State Awards presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Center.
Title: Relationship to Basic Financial Statements
Accounting Policies: The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or the Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. No federal or state financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center is not eligible to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has previously received a negotiated indirect cost rate for its federal awards.
Certain federal and state programs have been excluded from the Schedule of Expenditures of Federal and State Awards, including monies received under contract for Title XIX‐ HCS and other Medicaid/Medicare funding earned from providing patient services. The federal and state monies excluded from the Schedule of Expenditures of Federal and State Awards are not considered federal awards as defined in the Uniform Guidance or the Texas Grant Management Standards and are reported as local revenues in the basic financial statements.
Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) has also been excluded from the Schedule of Expenditures of Federal and State Awards because they are considered contract revenues, not state awards. The Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (Federal Financial Assistance Listing/CFDA #93.498) during the years ended August 31, 2020 and 2021. The Center incurred eligible expenditures and, therefore, recognized revenues totaling $98,646 and $494,572 for the years ended August 31, 2021 and 2022, respectively, on the financial statements. In accordance with the compliance supplement
addendum, the PRF expenditures recognized on the schedule are based on the reporting to HHS for the calendar year ending December 31, 2020, as required under the PRF program. No funds were received for Periods 3. The Center received $521,075 for Period 5. $494,573 were included in FY22 financials and was reported on the SEFA for FY23. $26,502 were received and recorded in FY 23.
Title: State Award Guidelines
Accounting Policies: The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or the Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. No federal or state financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center is not eligible to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has previously received a negotiated indirect cost rate for its federal awards.
State awards are subject to Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers (21st Revision) issued by Texas Health and Human Services Commission, as well as Texas Grant Management Standards. Such guidelines are consistent with those required under the Single Audit Act of 1996, the Uniform Guidance and Government Auditing Standards, issued by the Comptroller General of the United States.
Title: Substance Abuse
Accounting Policies: The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or the Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. No federal or state financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center is not eligible to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has previously received a negotiated indirect cost rate for its federal awards.
The Substance Abuse program was administered with both pass‐through federal funds and state funds. The Schedule of Expenditures of State and Federal Awards has been prepared reflecting this split.