Title: General
Accounting Policies: The Schedule of Expenditures of State and Federal 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 TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. State and federal 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.
De Minimis Rate Used: N
Rate Explanation: The Center has contracted with the respective granting agencies for indirect cost rates. Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Schedule of Expenditures of State and Federal Awards presents the activity of all applicable state and federal awards of PermiaCare (the Center). The Center’s reporting entity is defined in Note 1 of the basic financial statements. State and federal awards received directly from state and federal agencies, as well as state and federal awards passed through other governmental agencies, are included on the Schedule of Expenditures of State and Federal Awards. The information in the Schedule of Expenditures of State and Federal 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 State and Federal 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 State and Federal 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 TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. State and federal 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.
De Minimis Rate Used: N
Rate Explanation: The Center has contracted with the respective granting agencies for indirect cost rates. Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Certain state and federal programs have been excluded from the Schedule of Expenditures of State and Federal Awards, including monies received under vendor contract for Title XIX ICF/MR, Title XIX HCS/MR, Texas Rehabilitation Commission – Job Coach, and other Medicaid/Medicare funding earned from providing patient services. The state and federal monies excluded from the Schedule of Expenditures of State and Federal Awards are not considered financial assistance as defined in the Uniform Guidance and are included in total local revenues in the basic financial statements. Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) and Texas Highway Department funding have been excluded from the Schedule of Expenditures of State and Federal Awards as these monies are considered contracts, not state awards. The Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amounts reported below. The PRF expenditures are not recognized on the Schedule of Expenditures of State and Federal Awards until the expenditures are included in the reporting to HHS as required under the PRF program.
The Center received amounts from the U.S. Department of Health and Human Services (HHS) through the
Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Assistance Listing
#93.498) in the amount of $1,059,478 as of August 31, 2022. The Center incurred eligible expenditures and,
therefore, recognized revenues totaling $396,175 and $663,303 for the years ended August 31, 2022 and 2023,
respectively, on the financial statements. The PRF expenditures recognized on the scheduled are based on the
reporting to HHS for the calendar year ending June 30, 2022, as required under the PRF program. "See the Notes to the SEFA for chart/table."
Title: State Award Guidelines
Accounting Policies: The Schedule of Expenditures of State and Federal 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 TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. State and federal 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.
De Minimis Rate Used: N
Rate Explanation: The Center has contracted with the respective granting agencies for indirect cost rates. Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
State awards are subject to HHSC’s Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers (21st Revision) as well as the Office of the Governor’s 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: Federal/State Split Funding
Accounting Policies: The Schedule of Expenditures of State and Federal 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 TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. State and federal 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.
De Minimis Rate Used: N
Rate Explanation: The Center has contracted with the respective granting agencies for indirect cost rates. Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Early Childhood Intervention Program and certain Substance Abuse Programs were administered with both pass‐through state funds and federal funds. The Schedule of Expenditures of State and Federal Awards has been prepared reflecting the allocations provided by the pass‐through state agencies.
Title: Subrecipients
Accounting Policies: The Schedule of Expenditures of State and Federal 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 TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. State and federal 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.
De Minimis Rate Used: N
Rate Explanation: The Center has contracted with the respective granting agencies for indirect cost rates. Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
No federal or state awards were passed through to a subrecipient.