Title: Split Funded Programs
Accounting Policies: 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 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
The substance abuse programs and the Projects for Assistance in Transition for Homelessness Program were administered with both pass-through federal funds and state funds. The Schedule of Expenditures of Federal and State Awards have been prepared reflecting the allocations provided by the pass-through agencies.
Title: General
Accounting Policies: 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 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of the Company. The Companys reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards received directly from federal and state agencies, as well as federal and state awards passed through other governmental agencies, are included on the Schedule of Expenditures of Federal and State Awards.The information in the Schedule of Expenditures of Federal and State Awards 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 of Expenditures of Federal and State Awards present only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Company.
Title: State Award Guidelines
Accounting Policies: 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 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
State awards are subject to HHSCs Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers and Office of the Governors State of Texas Single Audit Circular. Such guidelines are consistent with those required under the Single Audit Act of 1996, 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 is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
Certain federal programs have been excluded from the Schedule of Expenditures of Federal and State Awards, including monies received under vendor contract for Title XIX HCS, Title XIX ICF/MR and other Medicaid/Medicare funding earned from providing patient services. These monies are included in total local revenues in the basic financial statements. The federal monies excluded from the Schedule of Expenditures of Federal and State Awards are not considered financial assistance as defined in the Uniform Guidance.Certain state contracts have also been excluded from the Schedule of Expenditures of Federal and State Awards. These state contracts are with the Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI). These contract amounts are included in total state program revenues in the basic financial statements. The state monies excluded from the accompanying schedule are not considered financial assistance as defined in the State of Texas Single Audit Circular.
Title: SEFA Reconciliation
Accounting Policies: 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 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
Federal awards per Schedule of Expenditures of Federal and State Awards $ 9,660,189 + CARES Provider Relief Funds recognized on general ledger and not on SEFA 894,036 - CARES Provider Relief Funds Period 2 recognized on SEFA in FY22(454,960) Total federal revenues on statement of revenues, expenditures, and changes in fund balance - governmental funds $10,099,265 State awards per Schedule of Expenditures of Federal and State Awards $12,012,125 + TCOOMMI - contract, not considered a grant 305,451 Total federal revenues on statement of revenues, expenditures, and changes in fund balance - governmental funds $12,317,576
Title: Provider Relief Funds
Accounting Policies: 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 3 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, they are recorded as unearned revenue until earned. Subrecipient expenditures are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The Company has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance because the Company has not been able to negotiate an indirect cost rate for its federal awards.
The Company received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the year ended August 31, 2022. The Company incurred eligible expenditures and, therefore, recognized revenues totaling$894,036 for the year ended August 31, 2022 on the financial statements. In accordance with the compliance supplement addendum, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 2 and Period 3 only, as required under the PRF program.