Notes to SEFA
BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state award activity of ACH Child and Family Services (the "Organization") under programs of the federal and state government for the year ended December 31, 2025. 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 the State of Texas Single Audit Circular. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular, wherein certain types of expenditures are not allowable or limited as to reimbursement. Pass-through entity identifying numbers are presented where available and applicable.
SUBRECIPIENTS AND CONTRACTORS During the year, the Organization operated as the monitoring and administrative agent of a large contract for the Texas Department of Health and Human Services. The Organization also operated as the monitoring and administrative agent of a contract for the Texas Department of Family and Protective Services. Responsibilities under these contracts included the monitoring of contracting agencies with which its program places foster children. Of the federal and state expenditures in the attached schedules, $75,393,464 was provided to these contracting foster agencies and family service providers for the year ended December 31, 2025.
STATE AWARDS State awards received by the Organization during the year consisted of federal pass through funds commingled with state general revenue funds from the state of Texas or state funds only. The Organization did not receive any state awards during the year that consisted of federal pass through funds only.
INDIRECT COST RATE The Organization has elected to use the 15 percent de minimis indirect cost rate on selected contracts as agreed upon with those grantors. For its remaining federal and state contracts, it continues to use the rates negotiated individually with its grantors for that specific contract.
NON-CASH ASSISTANCE The Organization has not received any non-cash assistance, insurance provided by a federal or state agency, or federal or state loans and/or loan guarantees.