Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state award activity of Helen Farabee Centers (Center) under programs of the federal and state governments for the year ended August 31, 2024. The information in this 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) and Texas Grant Management Standards (TxGMS). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Center.
Title: NATURE OF ACTIVITIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Center receives various grants to cover costs of specified programs. Final determination of eligibility of costs will be made by the grantors. Should any costs be found ineligible, the Center will be responsible for reimbursing the grantors for these amounts.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Federal and state awards are reported in the Center’s basic financial statements in the General Fund. Certain state program expenditures have been excluded from the Schedule by specific request of the funding agency. The state program excluded from the Schedule is the Texas Correctional Office on Offenders with Medical or Mental Impairments program in the amount of $279,480. This state program excluded from the accompanying Schedule is not considered financial assistance as defined in Texas Grant Management Standards (TxGMS). In addition, certain expenditures that were incurred in FY23 but recognized as revenues in FY24 are excluded from the schedule because they do not represent FY24 expenditures. These revenues are state substance abuse program revenues that were received several months after the end of FY23 and the amounts were unknown at the time the FY23 report was issued. These excluded amounts total $4,298. Following is a reconciliation of the basic financial statements to the Schedule of Expenditures of Federal and State awards:
Title: STATE AWARD GUIDELINES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Expenditures reported for the Medical Assistance Program (Medicaid; Title XIX) ALN 93.778 represent expenditures incurred during the audit period that the Center anticipates will be reimbursed through invoices submitted to the Texas Health and Human Services Commission. Due to the timing of the submission of these invoices, actual reimbursements received during the year will differ from these amounts.
De Minimis Rate Used: Y
Rate Explanation: The Center has 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. Such guidelines are consistent with those required under the Single Audit Act of 1996, the Uniform Guidance, Texas Grant Management Standards, and Government Auditing Standards, issued by the Comptroller General of the United States.