Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the
federal and state award activity of Hill Country MHDD Centers (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 the State of 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.
De Minimis Rate Used: N
Rate Explanation: 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 has not elected to use the de minimis indirect cost rate allowed
under the Uniform Guidance.
Expenditures reported in 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 use in the preparation of, the financial statements.
Title: NATURE OF ACTIVITIES
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the
federal and state award activity of Hill Country MHDD Centers (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 the State of 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.
De Minimis Rate Used: N
Rate Explanation: 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 has not elected to use the de minimis indirect cost rate allowed
under the Uniform Guidance.
Final determination of the eligibility of costs charged to federal and state grant programs will be made
by the grantors. Should any costs be found ineligible, the Center could be responsible for reimbursing
the grantors for these amounts.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the
federal and state award activity of Hill Country MHDD Centers (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 the State of 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.
De Minimis Rate Used: N
Rate Explanation: 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 has not elected to use the de minimis indirect cost rate allowed
under the Uniform Guidance.
Federal and state awards are reported in the Center’s basic financial statements in the General Fund.
One state program (the Texas Correctional Office on Offenders with Medical or Mental Impairments) has
been excluded from the Schedule of Expenditures of Federal and State Awards by specific request of the
funding agency. This program is not considered an award as defined by TxGMS.
Title: STATE AWARD GUIDELINES
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the
federal and state award activity of Hill Country MHDD Centers (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 the State of 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.
De Minimis Rate Used: N
Rate Explanation: 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 has not elected to use the de minimis indirect cost rate allowed
under the Uniform Guidance.
Federal and 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 Uniform
Guidance, TxGMS and Government Auditing Standards, issued by the Comptroller General of the United
States.
Title: PROVIDER RELIEF FUNDS
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the
federal and state award activity of Hill Country MHDD Centers (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 the State of 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.
De Minimis Rate Used: N
Rate Explanation: 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 has not elected to use the de minimis indirect cost rate allowed
under the Uniform Guidance.
The Center received $1,070,710 from the U.S. Department of Health and Human Services (HHS) through
the COVID-19 Provider Relief Funds and American Plan Rural Distribution (PRF) program (Federal
Financial Assistance Listing #93.498) during the year ended August 31, 2022. The Center incurred
eligible expenditures and, therefore, recognized revenues totaling $1,070,710 for the year ended August
31, 2022, in the financial statements. In accordance with the Compliance Supplement addendum, the
PRF expenditures reported on the current year schedule are based on the reporting to HHS (Period 4)
for funds expended prior to December 31, 2022.