Notes to SEFA
Title: Note 1: BASIS OF PRESENTATION OF SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE OF TEXAS AWARDS
Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles as found in the Uniform Guidance for federal awards and TxGMS
for state of Texas awards.
The Resource Group has elected not to use the 10% de minimus indirect cost rate allowed under the
Uniform Guidance and TxGMS. In addition, The Resource Group did not receive any noncash assistance,
federal loans, or federally funded insurance during the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The accompanying Schedules of Expenditures of Federal and State of Texas Awards (the Schedules) present
the Federal and State of Texas program fund expenditures of all Federal and State of Texas award programs
of Houston Regional HIV/AIDS Resource Group, Inc. (The Resource Group) for the year ended December 31,
2023. The information in these schedules 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).
Therefore, some amounts presented in these schedules may differ from amounts presented in or used in the
preparation of The Resource Group’s financial statements.
Title: Note 3: RELATIONSHIP TO FINANCIAL REPORTS SUBMITTED TO GRANTOR AGENCIES
Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles as found in the Uniform Guidance for federal awards and TxGMS
for state of Texas awards.
The Resource Group has elected not to use the 10% de minimus indirect cost rate allowed under the
Uniform Guidance and TxGMS. In addition, The Resource Group did not receive any noncash assistance,
federal loans, or federally funded insurance during the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
Amounts reflected in the financial reports filed with grantor agencies for the programs and the
supplementary schedules may not agree because of accruals included in the next report filed with the
agencies, matching requirements not included in the Schedules of Expenditures of Federal and State of
Texas Awards and different program year ends.
Title: Note 4: SUBSEQUENT EVENTS
Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles as found in the Uniform Guidance for federal awards and TxGMS
for state of Texas awards.
The Resource Group has elected not to use the 10% de minimus indirect cost rate allowed under the
Uniform Guidance and TxGMS. In addition, The Resource Group did not receive any noncash assistance,
federal loans, or federally funded insurance during the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
Management evaluated all events or transactions that occurred after December 31, 2023 through July 22,
2025, the date The Resource Group’s financial statements were available to be issued.
Subsequent to December 31, 2023, The Resource Group was subject to compliance monitoring reviews from
the U.S. Department of Housing and Urban Development on the Housing Opportunities for Persons with
AIDS program that resulted in disallowed costs totaling $13,658 and $118,942 for the years ended
December 31, 2023 and 2024, respectively.