Notes to SEFA
The accompanying schedule of expenditures of federal and state awards (the schedule) includes the federal and state award activity of the Heart of Texas Behavioral Health Network (the Center) under programs of the federal and state government for the year August 31, 2025. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards (Uniform Guidance) and State of 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 or changes in financial position of the Center.
Certain state and federal programs have been excluded from the Schedule of Expenditures of State and Federal Awards, including monies received under vendor contract for Title XIX HCS/MR and other Medicaid/Medicare funding earned from providing patient services. The state and federal monies excluded from the Schedule of Expenditures of State and Federal Awards are not considered financial assistance as defined in the Uniform Guidance and are included in total local revenues in the basic financial statements. Texas Correctional Office on Offenders with Medical or Mental Impairments (TCOOMMI) has been excluded from the Schedule of Expenditures of State and Federal Awards as these monies are considered contracts, not state awards. A reconciliation of the Schedule of Federal and State Awards to the financial statements is as follows: See notes to SEFA for table/chart.
State awards are subject to HHSC’s Guidelines for Annual Financial and Compliance Audits of Community MHMR Centers (21st Revision) as well as the Office of the Governor’s 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.
The Early Childhood Intervention Program and certain Substance Abuse programs were administered with both passthrough federal funds and state funds. The Schedule of Expenditures of Federal and State Awards has been prepared reflecting the allocation provided by the pass-through state agencies.
The Center does not pass any of their federal or state funding through to subrecipients.