Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and
Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN/CFDA 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: N
Rate Explanation: The Center did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and
state award activity of Bluebonnet Trails Community Services (the “Center”) under programs of the federal and state governments for the year ended August 31, 2023. The information in this Schedule 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 Texas Grant Management Standards (TxGMS). Because the Schedule 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: INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and
Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN/CFDA 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: N
Rate Explanation: The Center did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
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 did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NATURE OF ACTIVITIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and
Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN/CFDA 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: N
Rate Explanation: The Center did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Center receives various grants to cover costs of specified programs. Final determination of eligibility of costs will be made by the grantors. Should any costs be found ineligible, the Center will be responsible for reimbursing the grantors for these amounts.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and
Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN/CFDA 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: N
Rate Explanation: The Center did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Federal and state award programs are reported in the Center’s basic financial statements in the General Fund. State award programs presented in the accompanying Schedule of Federal and State Awards do not include funds received from the Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) in the amount of $731,987. These revenues have been excluded from the Schedule of Expenditures of Federal and State Awards by specific request of the funding agency. These revenues are included in total state program revenues in the basic financial statements. These state programs excluded from the accompanying schedule are not considered financial assistance as defined in Texas Grant Management Standards (TxGMS).
The Center received a lump sum reimbursement of state general revenue in FY23 in the total amount of $141,104
for substance abuse program costs that were incurred in FY22. This reimbursement was received well after the end of FY22, and this amount was recognized as revenue in FY23. These costs are excluded from the Schedule this year, as the expenditures do not relate to the current period. The federal program reported as a different amount on the accompanying financials than on the accompanying Schedule of Expenditures of Federal Awards relates to ALN 93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution. Per guidance issued by OMB, only
Provider Relief Funds received in Period 4 (July 1, 2021 – December 30, 2021) and Period 5 (January 1, 2022 – June 30, 2022) should be presented on the Schedule of Federal Awards for periods ending August 31, 2023.
Pursuant to the OMB guidance, the amount reported on the Schedule of Expenditures of Federal Awards for fiscal year ending August 31, 2023, agrees to the amount reported on the for Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Period 4 report submitted on March 20, 2023. The Center did not receive any Provider Relief Fund and ARP Rural Distribution Period 5 funds.
A reconciliation of the Schedule of Federal and State Awards to the financial statements is as follows:
Title: STATE AWARD GUIDELINES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and
Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN/CFDA 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: N
Rate Explanation: The Center did not elect 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. Such guidelines are consistent with those required under the Single Audit Act of 1996, the Uniform Guidance, Texas Grant Management Standards (TxGMS), and Government Auditing Standards, issued by the Comptroller General of the United States.