Audit 340833

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: For the programs under the U.S. Department of Health and Human Services, which are passed through the Texas Department of Health and Human Services, SACADA used its approved indirect cost rate allocated based on direct salary and wages of each cost objective as a percentage of total salary and wages as approved in each categorical budget. This rate ranged from 8% to 12%. For the programs under the U.S. Department of Health and Human Services, which are passed through the Substance Abuse and Mental Health Services Administration, SACADA used its approved indirect cost rate allocation of 27%. The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state grant activity of San Antonio Council on Alcohol and Drug Awareness (“SACADA”) under programs of the federal and state government for the year ended August 31, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Because the schedule presents only a selected portion of the operations of SACADA, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of SACADA. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. All of SACADA’s federal and state awards were in the form of cash assistance. SACADA had no federal or state funded insurance programs or loan guarantees during the year ended August 31, 2024. The Texas Health and Human Services Commission Prevention Umbrella program is comprised of six programs billed under one contract number. The six programs are Youth Prevention - Universal (YPU), Community Coalition Partnerships, Community Coalition Partnerships (COVID), Youth Prevention - Selective (YPS), Youth Prevention - Indicated (YPI), and Prevention Resource Centers (PRC).

Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: For the programs under the U.S. Department of Health and Human Services, which are passed through the Texas Department of Health and Human Services, SACADA used its approved indirect cost rate allocated based on direct salary and wages of each cost objective as a percentage of total salary and wages as approved in each categorical budget. This rate ranged from 8% to 12%. For the programs under the U.S. Department of Health and Human Services, which are passed through the Substance Abuse and Mental Health Services Administration, SACADA used its approved indirect cost rate allocation of 27%. Expenditures reported on the schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: For the programs under the U.S. Department of Health and Human Services, which are passed through the Texas Department of Health and Human Services, SACADA used its approved indirect cost rate allocated based on direct salary and wages of each cost objective as a percentage of total salary and wages as approved in each categorical budget. This rate ranged from 8% to 12%. For the programs under the U.S. Department of Health and Human Services, which are passed through the Substance Abuse and Mental Health Services Administration, SACADA used its approved indirect cost rate allocation of 27%. For the programs under the U.S. Department of Health and Human Services, which are passed through the Texas Department of Health and Human Services, SACADA used its approved indirect cost rate allocated based on direct salary and wages of each cost objective as a percentage of total salary and wages as approved in each categorical budget. This rate ranged from 8% to 12%. For the programs under the U.S. Department of Health and Human Services, which are passed through the Substance Abuse and Mental Health Services Administration, SACADA used its approved indirect cost rate allocation of 27%.