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 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 thse invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected 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 Sabine Valley Regional Mental Health Mental Retardation Center dba Community Healthcore, (the "Center") under programs of the federal and state governments for the year ended August 31, 2023. The inf01mation 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: 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 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 thse invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected 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 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 thse invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected 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 do not include funds received from the Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) in the amount of $715,917. These revenues have been excluded from the Schedule 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. In addition, certain expenditures that were incurred in FY22 but recognized as revenues in FY23 areexcluded from the schedule because they do not represent FY23 expenditures. These revenues are state substance abuse program revenues that were received several months after the end ofFY22 and the amounts were unknown at the time the FY22 report was issued. These excluded amounts total $146,652.
The federal program adjustments to the schedule relate to Provider Relief Funds (ALN 93.498). Per guidance issued by 0MB, Provider Relief Funds should not be presented on the Schedule of Federal Awards until such time as they have been reported through the federal Provider Relief Fund reporting portal in the appropriate period. Pursuant to this guidance, Provider Relief Funds recognized as revenue in a prior period in the amount of$159,769 ($394,555 total reported in period 4 less $234,786 recognized as revenue inFY23) that were rep01ied in Period 4 through the federal Provider Relief Fund reporting portal are included on the Schedule. $394,555 agreed to the Period 4 report filed by the Center. Provider Relief Funds recognized as revenue in the current year in the amount of $1,407,512, but had not yet met the portal filing requirement (period 6 funding) were excluded from the Schedule. 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 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 thse invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has 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. Such guidelines are consistent with those required under the Single Audit Act of 1996, the Uniform Guidance, Texas Grant Management Standards and Government Auditing Standards issued by the
Comptroller General of the United States.