Notes to SEFA
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, 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, 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 award programs are reported in the Center’s basic financial statements in the General Fund. State award programs presented in the accompanying Schedule do not include funds received from the Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) in
the amount of $389,275. These state programs are excluded from the accompanying schedule and are not considered financial assistance as defined in the Texas Grant Management Standards. A reconciliation of the Schedule of Federal and State Awards to the financial statements is as follows:
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, 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, (TxGMS) and Government Auditing Standards, issued by the
Comptroller General of the United States.