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 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. The Center has contracted with certain 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 elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
The Schedule of Expenditures of State and Federal Awards presents the activity of all applicable state and federal awards of the Center. The Centers reporting entity is defined in Note 1 of the basic financial statements. State and federal awards received directly from federal and state agencies, as well as federal and state 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) and State of Texas Single Audit Circular (TSAC). 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 the 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 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. The Center has contracted with certain 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 elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
Certain state and federal programs have been excluded from the Schedule of Expenditures of State and Federal Awards (SESFA), including monies received under vendor contract for Title XIX HCS/MR and other Medicaid/Medicare funding for providing patient services. The state and federal monies excluded from the SESFA are not considered federal or state awards as defined in the Uniform Guidance or the TSAC and are reported as local revenues in the basic financial statements. Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) has been excluded from the Schedule of Expenditures of State and Federal Awards because they are considered contract revenue and not state awards.
Title: Provider Relief Funds
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 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. The Center has contracted with certain 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 elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
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/CFDA #93.498) during the years ended August 31, 2021 and 2022. The Center incurred eligible expenditures and, therefore, recognized revenues totaling $1,040,958 and $778,182 for the years ended August 31, 2021 and 2022, respectively, on the financial statements. The PRF expenditures recognized on the schedule are based on the reporting to HHS, as required under the PRF program. The amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources, estimating marginal increases in expenses related to coronavirus and the calculation of lost revenue. Actual results could differ from those estimates. A reconciliation of the SESFA to the audited financial statement is as follows: Federal awards per Schedule of Expenditures of State and Federal Awards $8,764,178 Less: COVID-19 Provider Relief Funds reported to HHS in Period 2 (1,234,295) Plus: COVID-19 Provider Relief Funds reported as revenue for Period 4 778,182 Total federal revenues on statement of revenues, expenditures and changes in fund balance- governmental funds $8,308,065
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 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. The Center has contracted with certain 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 elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
State awards are subject to HHSCs Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers (21st Revision) as well as the Office of the Governors State of Texas Single Audit Circular. 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: 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 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. The Center has contracted with certain 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 elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
The Center does not pass any of their state or federal funding through to subrecipients.