Audit 343366

Title: GENERAL Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center's reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards.

Title: BASIS OF ACCOUNTING Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic financial statements. State and federal grants are considered to be earned to the extent of expenditures made under the provision of the grant; and accordingly, when such funds are received, and they are recorded as unearned revenue until earned.

Title: STATE AWARD GUIDELINES Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 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 and Office of the Governor's State of Texas Single Audit Circular. Such guidelines are consistent with those required under the Uniform Guidance and Government Auditing Standards, issued by the Comptroller General of the United States.

Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Certain state and federal programs have been excluded from the Schedule of Expenditures of Federal and State Awards, including monies received under vendor contract for the Texas Department of Criminal Justice for the Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) program. These monies are included in total local revenues in the basic financial statements. The monies are excluded from the Schedule of Expenditures of Federal and State Awards are not considered financial assistance as defined in the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations.

Title: INDIRECT COSTS Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 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 has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: SUB-RECIPIENTS OF FEDERAL AWARDS Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Center does not have any sub-recipients for their federal awards.

Title: NON-CASH FEDERAL AWARDS Accounting Policies: The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Center. The Center’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal and State Awards. 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 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Center did not receive any noncash assistance.