Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Office of Management and Budget (OMB) Circular A-122, Cost Principles for Not-for-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Southwest Behavioral Health Services, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Southwest Behavioral Health Services, Inc. under programs of the federal government for the year ended September 30, 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Southwest Behavioral Health Services, Inc., it is not intended to and does not present the consolidated financial position, change in net assets or cash flows of Southwest Behavioral Health Services, Inc. Southwest Behavioral Health Services, Inc. did not provide federal awards to sub-recipients during the year ended September 30, 2024.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Office of Management and Budget (OMB) Circular A-122, Cost Principles for Not-for-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Southwest Behavioral Health Services, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Office of Management and Budget (OMB) Circular A-122, Cost Principles for Not-for-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Southwest Behavioral Health Services, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Additional Federal Financial Assistance
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Office of Management and Budget (OMB) Circular A-122, Cost Principles for Not-for-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Southwest Behavioral Health Services, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Southwest Behavioral Health Services, Inc. and Subsidiaries' consolidated financial statements include the operations of Toby House III, Inc., Toby House V, Inc., Toby House VI, Inc., Toby House VII, Inc., and Toby House VIII, Inc., which received $8,783,729 in federal awards from the U.S. Department of Housing and Urban Development (HUD) which is not included in the accompanying schedule of expenditures of federal awards for the year ended September 30, 2023. Management has elected to have separate audits of compliance performed under the Uniform Guidance on the federal awards for Toby House III, Inc., Toby House V, Inc., Toby House VI, Inc., Toby House VII, Inc., and Toby House VIII, Inc., in which separate audit reports have been issued for each of these entities.
Title: Capital Advances and Loans
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Office of Management and Budget (OMB) Circular A-122, Cost Principles for Not-for-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Southwest Behavioral Health Services, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Toby House IV, Inc. and Mihalic's Project, Inc. were constructed under Capital Advance Financing Agreements with the U.S. Department of Housing and Urban Development ("HUD"). Under these agreements, the capital advances bear no interest and are not required to be repaid so long as the housing remains available to eligible very low-income households for a period of 40 years and is in accordance with Section 202 of the Housing Act of 1959 or Section 811 of the National Affordable Housing Act. Villa De Confianza, Inc., Villa Agave Corporation and Toby House II, Inc. were financed through loans from HUD pursuant to Section 202 of the National Housing Act. Loans and loan guarantees (including capital advances) outstanding at the beginning of the year are included in the federal expenditures presented in the accompanying schedule of expenditures of federal awards.
The balance of the capital advances and loans with continuing compliance requirements at September 30, 2023 are as follows: See Notes to the SEFA for chart/table.