Notes to SEFA
Title: Note 1 - General
Accounting Policies: Note 2 Basis of Accounting. The Schedule of Expenditures of Federal and State Awards is prepared using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Note 4 Indirect Costs. The Center has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance.
The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable state and federal awards of The Harris Center for Mental Health and IDD (the Center) for the year ended August 31, 2022. The Center's reporting entity is defined in Note 1 of the basic financial statements. Federal and state financial awards received directly from federal and state agencies, as well as federal financial awards passed through other governmental agencies, are included on the Schedule of Expenditures of Federal and State Awards.
Title: Note 3 - State Financial Assistance Guidelines
Accounting Policies: Note 2 Basis of Accounting. The Schedule of Expenditures of Federal and State Awards is prepared using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Note 4 Indirect Costs. The Center has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance.
State financial assistance is subject to the Texas Health and Human Services Commissions Guidelines for Annual Financial and Compliance Audits of Community Mental Retardation Centers (21st Revision). Such guidelines are consistent with those required under the Uniform Guidance and the Texas Grant Management Standards.
Title: Note 5 - Reconciliation of state revenues and the Schedule of Expenditures
Accounting Policies: Note 2 Basis of Accounting. The Schedule of Expenditures of Federal and State Awards is prepared using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Note 4 Indirect Costs. The Center has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance.
The following is a reconciliation of state grant expenditures reported on the Schedule of Expenditures of State Awards to the state revenues reported in the basis financial statements for the year ended August 31, 2022: See the notes to SEFA for chart/table.