Title: Reporting Entity
Accounting Policies: The accompanying Schedule of Expenditures of State and Federal Awards is presented using 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 State of Texas Uniform Grant Management Standards, 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: Y
Rate Explanation: The auditee used the de minimis cost rate. Integral Care has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of State and Federal Awards presents the activity of all applicable state and federal awards of Integral Care. Integral Cares reporting entity is defined in Note 1 to the basic financial statements. State and federal awards received directly from state and federal agencies, as well as federal awards passed through other governmental agencies, are included on the schedule. 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: State Award Guidelines
Accounting Policies: The accompanying Schedule of Expenditures of State and Federal Awards is presented using 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 State of Texas Uniform Grant Management Standards, 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: Y
Rate Explanation: The auditee used the de minimis cost rate. Integral Care has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
State awards are subject to the Texas Health and Human Services Commissions (HHSC) Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such guidelines are consistent with those required under Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the State of Texas Uniform Grant Management Standards, and Government Auditing Standards, issued by the Comptroller General of the United States.
Title: Relationship to Basic Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of State and Federal Awards is presented using 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 State of Texas Uniform Grant Management Standards, 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: Y
Rate Explanation: The auditee used the de minimis cost rate. Integral Care has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Certain state and federal awards have been excluded from the Schedule of Expenditures of State and Federal Awards (SESFA). Federal revenues earned and received from the Centers for Medicare and Medicaid Services (CMS) and passed through HHSC for the HHSC Healthcare Transformation and Quality Improvement Program 1115 demonstration waiver are excluded from the Federal awards section of the SESFA. In addition, certain state contracts have been excluded from the State awards section of the SESFA by specific request of the funding agency. These contracts are with the Texas Correctional Office on the Offenders with Medical or Mental Impairments (TCOOMI) which is passed through the Texas Department of Criminal Justice. The state and federal monies excluded from the SESFA are not considered federal or state awards as defined by the Uniform Guidance or State of Texas Single Audit Circular. 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 (Federal Financial Assistance Listing #93.498) during the years ended August 31, 2020, 2021 and 2022. The Center incurred eligible expenditures and, therefore, recognized revenues totaling $576,060 and $172,381 for the years ended August 31, 2021 and 2022, respectively, on the financial statements. 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. State and federal revenues in Integral Cares basic financial statements differ from the accompanying schedule due to classifications based on the pass-through entity. A reconciliation of the SESFA to the audited financial statements is as follows: State expenditures per SESFA $32,383,130 TCOOMMI 2,207,865 TRC Fees Billed 52,231 State revenues per basic financial statements $34,643,226 Federal expenditures per SESFA $20,443,435 Directed Payment Program-Comp 1 3,344,207 Directed Payment Program-Comp 2 835,472 1115 Transformation Waiver 15,113,484 Veterans Administration 793,643 City of Austin-Prolodges 274,761 Provider Relief Funds reported as revenue during FY 2022 related to period 4 172,381 Provider Relief Funds reported as revenue during FY 2021 related to period 2 (546,669) Other 2,827 Federal revenues per basic financial statements $40,433,541