Title: General
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 to the Center's 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. No funds passed through to subrecipients. The format for the accompanying schedule has been prescribed by the Texas Department of Health and Human Services Commission Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such format includes revenue recognized in the Center's basic financial statements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Center elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has not been able to negotiate an indirect cost rate for its federal awards.
The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all applicable state and federal financial assistance programs of Spindletop Center ("Center"). The Center reporting entity is defined in Note 1 to the Center's basic financial statements. State and federal financial assistance received directly from state and federal agencies as well as federal financial assistance passed through other government 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: Relationship to Basic Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 to the Center's 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. No funds passed through to subrecipients. The format for the accompanying schedule has been prescribed by the Texas Department of Health and Human Services Commission Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such format includes revenue recognized in the Center's basic financial statements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Center elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has not been able to negotiate an indirect cost rate for its federal awards.
State and federal financial assistance programs are reported in the Center's basic financial statements in the General Fund. Certain state programs have been excluded from the Schedule of Expenditures of Federal and State Awards, including monies received under the vendor contract for Title XIX HCS/IDD and other Medicaid/Medicare funding for providing patient services. The federal and state monies excluded from the Schedule of Expenditures of Federal and State Awards are not considered federal or state awards as defined in the Uniform Guidance or State of Texas Single Audit Circular. These monies 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 Federal and State Awards, as has the Texas Department of Criminal Justice program, the Workquest program, and the Texas Rehabilitation Commission program because these programs are considered contract revenue and not federal or 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 (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 $827,372 and $271,767 for the years ended August 31, 2020 and 2021, 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 Period 3. The Center received $392,197 for Period 4 that was included in FY22 financials and will be reported on the SEFA in future years. Federal awards per Schedule of Expenditures of Federal and State Awards $8,503,653 +CARES Provider Funds reported in FY22 audit 392,197 -CARES Provider Funds reported in previous audits on CY SEFA (1,099,141) -DJ-Edward Byrne Memorial Justice Assistance Grant(7,198) Total federal revenues on statement of revenues, expenditures and changes in fund balance-governmental funds $7,789,511 State awards per Schedule of Expenditures of Federal and State Awards $17,129,418 +PASRR 15,269 +TCOOMMI-contract, not considered a grant 764,251 +Texas Department of Criminal Justice 204,927 +Texas Rehabilitation Commission 28,200 Total state revenues on statement of revenues, expenditures and changes in fund balance-governmental funds $18,142,065
Title: Program or Award Amounts
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 to the Center's 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. No funds passed through to subrecipients. The format for the accompanying schedule has been prescribed by the Texas Department of Health and Human Services Commission Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such format includes revenue recognized in the Center's basic financial statements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Center elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has not been able to negotiate an indirect cost rate for its federal awards.
Amounts include contract/award amounts plus any additional reimbursement monies received in fiscal year 2022.
Title: State Financial Assistance Guidelines
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 to the Center's 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. No funds passed through to subrecipients. The format for the accompanying schedule has been prescribed by the Texas Department of Health and Human Services Commission Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such format includes revenue recognized in the Center's basic financial statements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Center elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has not been able to negotiate an indirect cost rate for its federal awards.
State financial assistance is subject to Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such guidelines are consistent with those required under the Single Audit Act of 1996, Uniform Guidance, the State of Texas Single Audit Circular, and Government Auditing Standards, issued by the Comptroller General of the United States.
Title: Sub-Recipients
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 to the Center's 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. No funds passed through to subrecipients. The format for the accompanying schedule has been prescribed by the Texas Department of Health and Human Services Commission Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers. Such format includes revenue recognized in the Center's basic financial statements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Center elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Center has not been able to negotiate an indirect cost rate for its federal awards.
The Center had no sub-recipients for the year ended August 31, 2022.