Comprehensive Annual Financial Report (CAFR) 2013-2014

Transcription

MENTAL HEALTH AND MENTAL
RETARDATION AUTHORITY OF
HARRIS COUNTY
(A COMPONENT UNIT OF HARRIS COUNTY, TEXAS)
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For Fiscal Years Ended August 31, 2014 and 2013
Steven B. Schnee, Ph.D.
Executive Director
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
OF
MENTAL HEALTH AND
MENTAL RETARDATION
AUTHORITY OF HARRIS COUNTY
(A COMPONENT UNIT OF HARRIS COUNTY, TEXAS)
For Fiscal Years Ended August 31, 2014 and 2013
Steven B. Schnee, Ph.D.
Executive Director
Harris County, Texas
THIS PAGE LEFT BLANK INTENTIONALLY
MENTAL HEALTH AND MENTAL RETARDATION
TABLE OF CONTENTS
AUGUST 31, 2014
Page
Number
INTRODUCTORY SECTION
Listing of Officials ..........................................................................................................
i
Certificate of Board .........................................................................................................
ii
Letter of Transmittal .......................................................................................................
iii
GFOA Certificate of Achievement ..................................................................................
x
Organizational Chart .......................................................................................................
xi
FINANCIAL SECTION
Independent Auditors’ Report..........................................................................................
1-3
Management’s Discussion and Analysis (Required Supplementary Information) ..........
4 - 10
Basic Financial Statements
Government-wide Financial Statements
Comparative Statement of Net Position.....................................................................
11
Statement of Activities ...............................................................................................
12 - 13
Fund Financial Statements
Comparative Balance Sheet – Governmental Funds ..................................................
14
Reconciliation of the Comparative Balance Sheet - Governmental Funds
to the Comparative Statement of Net Position – Governmental Activities ...............
15
Comparative Statement of Revenues, Expenditures, and Changes in Fund
Balance – Governmental Funds .................................................................................
16
TABLE OF CONTENTS
AUGUST 31, 2014
Page
Number
FINANCIAL SECTION (Continued)
Reconciliation of the Comparative Statement of Revenues,
Expenditures and Changes in Fund Balance – Governmental Funds
to the Statements of Activities ....................................................................................
17
Budgetary Comparison Statement – General Fund ....................................................
18 - 20
Comparative Statement of Net Position – Proprietary Fund ......................................
21
Comparative Statement of Revenues, Expenditures,
and Changes in Fund Net Position – Proprietary Fund ...............................................
22
Comparative Statement of Cash Flows – Proprietary Fund ........................................
23
Comparative Statement of Fiduciary Assets &
Liabilities – Agency Fund ...........................................................................................
24
Combining Statements of Discretely Presented Component Units:
Combining Statement of Net Position ........................................................................
25
Combining Statements of Activities ...........................................................................
26 - 28
Notes to the Basic Financial Statements ......................................................................
29 - 46
Other Supplementary Information
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source ...................................................................................................
47
Schedule by Function .................................................................................................
48
Schedule of Changes by Function .............................................................................
49
Comparative Schedule of Changes in Fiduciary Assets and
Liabilities - Agency Fund ............................................................................................
50
TABLE OF CONTENTS
AUGUST 31, 2014
Page
Number
STATISTICAL SECTION
Net Position by Component ............................................................................................
51- 52
Changes in Net Position ...................................................................................................
53 -54
Fund Balances, Governmental Funds ........................................................
55 - 56
Changes in Fund Balance, Governmental Funds .......................................
57 - 58
Principal Sources of Revenue ....................................................................
59 - 60
Summary Schedule of Indirect Costs .........................................................
61
Detail Schedule of Direct and Indirect Costs .............................................
62
Local Service Area Population ..................................................................
63
Demographic Statistics of Local Service Area ..........................................
64
Ratio of Outstanding Debt .........................................................................
65
Principal Employers in the Catchment Area ...............................................
66
Full-Time Equivalent Employees by Function/Program ...........................
67 - 68
Operating Indicators by Function/Program ................................................
69 - 70
General Fund Revenue by Source of Funds ..............................................
71
General Fund Expenditures by Category ...................................................
72
Capital Assets by Governmental Activity ..................................................
73 - 74
TABLE OF CONTENTS
AUGUST 31, 2014
Page
Number
STATISTICAL SECTION (Continued)
Reconciliation of Total Revenues to
Fourth Quarter Financial Report .................................................................
75
Reconciliation of Total Expenditures
to Fourth Quarter Financial Report ............................................................
76
Summary Schedule of Mental Health Adult,
Mental Health Children and Mental Retardation
Expenditures by Service Category and Source of Funds ............................
77 - 78
Schedule of Revenues and Expenditures
by Source of Funds, General Fund ............................................................
79 -80
Schedule of Mental Health Adult Expenditures
by Service Category and Source of Funds .................................................
81 - 83
Schedule of Mental Health Children Expenditures
by Service Category and Source of Funds .................................................
84 - 85
Schedule of Mental Retardation Expenditures by
Service Category and Source of Funds .......................................................
86 - 87
Schedule of Leases in Effect ......................................................................
88
Schedule of Land, Buildings, and Equipment ............................................
89
Schedule of Insurance Coverage .................................................................
90 - 94
Schedule of Bond Coverage .......................................................................
95
Schedule of Professional and Consulting Fees
and Contracted Provider Services ..............................................................
96 - 99
Schedule of Legal Services ........................................................................
100
TABLE OF CONTENTS
AUGUST 31, 2014
Page
Number
SINGLE AUDIT SECTION
Independent Auditors’ Report on Internal Control
over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ..............
101 -102
Independent Auditors’ Report on Compliance
for each Major Program and on Internal Control
over Compliance Required by OMB Circular A-133, Texas Health
and Human Services Commission’s Guidelines for Annual
Financial and Compliance Audits of Community MHMR Centers
and the State of Texas Single Audit Circular..............................................
103 - 105
Schedule of Findings and Questioned Costs ...............................................
106
Schedule of Expenditures of Federal and State Awards .............................
107- 108
Notes to Schedule of Expenditures of Federal and State Awards .............
109
INTRODUCTORY SECTION
AUTHORITY OF HARRIS COUNTY, TEXAS
Listing of Officials
August 31, 2014
Board of Trustees
Tom Hamilton, Ph. D.
Bob Borochoff
Gerald Womack
Victor C. Alvarez
Efrain Bleiberg, M.D.
Jon R. Keeney
Johnanna (Jo) Monday
Lois J. Moore, BSN, MED, LHD, FACHE
Robert Whitten, Jr., C.P.A.
Board Chairperson
Board Vice Chairperson, Public Education Committee Chairperson
Secretary, Resource Committee Chairperson
Board Member
Board Member, Program Committee Chairperson
Board Member
Board Member
Board Member, Audit Committee Chairperson
Board Member
Executive Staff
Steven B. Schnee, Ph. D.
Scott P. Strang, Ph. D., M.B.A.
Rose L. Childs, M.S.W., C.S.W.M.
Scott P. Strang, Ph. D., M.B.A.
Barbara Dawson, M.S.E.
Alex V. Lim, C.P.A., M.B.A.
Jeanne Mayo, M.S., J.D.
Sylvia Muzquiz, M.D.
Sarah Flick, M.D.
Daryl Knox, M.D.
Carson Easley, R.N., M.S.N.
Robert Stakem, Jr., MPM, CPHQ
Charlotte Simmons
Paul Wilson, P.E.
Ron Coots, B.S.N., M.S.H.P.
Scott Hickey, Ph. D.
Executive Director
Chief Operating Officer
Deputy Director, Mental Health Services
Interim Deputy Director, Intellectual Disability and Autism Services
Deputy Director, Psychiatric Emergency and Hospital Services
Chief Financial Officer
General Counsel
Medical Director, Mental Health Services
Medical Director, Intellectual Disability and Autism Services
Medical Director, Psychiatric Emergency and Hospital Services
Director, Nursing Services
Director, Program Compliance and Clinical Supports
Director, Human Resources and Public Affairs
Director, Facility Services
Director, Information Services
Director, Outcomes Management
i
iii
iv
v
vi
vii
viii
ix
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Mental Health and Mental
Retardation Authority of Harris County
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
August 31, 2013
Executive Director/CEO
x
MENTAL HEALTH AND MENTAL RETARDATION AUTHORITY OF HARRIS COUNTY – FY’14
BOARD OF TRUSTEES
Planning Advisory
Councils
Office of the Executive Director
 Executive Administrative Assistant\
Board Recording Secretary & Archivist
Executive Director
 Director Topaz Authority
 Project Manager
 Central Executive Support Services
Internal
Auditor
 Executive Decision Support Services
Legal Services
Medical
Director
MH
Services
Chief Operating
Officer
Director
DSRIP Projects
Project Director
Collaborative Care
Medical Medical Director
Director
IDD Services
Emergency
Services
Pharmacy
Services
Director
Outcomes Mgmt
Director
Facility Services
xi
Facility
Services
Chief Financial
Officer
Purchasing
Managed Care
Billings/Collections
Accounting/Finance
Director
Information Services
Office of the Deputy Director
 Ed Dev & Finance Mgr

Staff Services Admin
MH Services
Deputy

Consumer Council Coord

Director Housing Develop


Nurse Manager
Budget &Project Manager
Operations Manager
Legal Review Manager
Risk Management
Contract Services
Human Resources
 Payroll
 Public Affairs
 OD & Training
Medical Records
Network Management
Utilization Management
Program Compliance
Continuity of Care
Rights Protection
Housing Specialist
Comprehensive
Psychiatric Emergency Programs
Deputy
Medical Director




Director Program Compliance
And Clinical Supports
Infection Control
Nursing Practice
(All Divisions)
Nurse Manager, IDD Svcs
Nurse Manager, CPEP Svcs
Nurse Manager, MH Svcs
Infrastructure Services
Desktop Services
Customer Services
Application Services
Application Development
IDD Services
Deputy
Director of
Nursing
Services
General
Counsel
Medical Director
Medical Director
Nurse Manager
Nurse Manager
Asst. Deputy
Authority Services
Asst. Deputy
ECI Services
Asst. Deputy
Provider Services
Asst. Deputy
Asst. Deputy
Dept. Director
ICF-IID
Network &Transportation
Services
TxHmLv
HCS
Clinical
Services
CRU
CCU
CSU
COD
Branard Street
Prog Dir
Prog Dir
PES
23 Hr Obs
HelpLine
PATH
CCSI
CTI
CIRT
MCOT
SPA
HCPI
Asst. Deputy
JJ/CUPS
New Start
Special Programs
Asst. Deputy
Budget Manager
Clinics
ACT Teams
MH Svcs Safe Havens
Collaboration for Action
Eligibility Center
Asst. Deputy
Forensic Services
Atascocita
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
The Board of Trustees
Mental Health and Mental Retardation
Authority of Harris County
We have audited the accompanying financial statements of the governmental activities, the
aggregate discretely presented component units, each major fund and the aggregate remaining fund
information of the Mental Health and Mental Retardation Authority of Harris County (the “Agency”), a
component unit of Harris County, Texas, as of and for the year ended August 31, 2014 (May 31, 2014
for Pasadena Cottages, Inc.), and the related notes to the financial statements, which collectively
comprise the Agency’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with the accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatements, whether due to fraud
or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did
not audit the financial statements of Pasadena Cottages, Inc., Pecan Village, Inc., Villas at Bayou Park,
Inc., Pear Grove, Inc., or Acres Homes Gardens, Inc., which represent 90 percent, 88 percent, and 63
percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented
component units. Those statements were audited by other auditors whose report has been furnished to
us, and our opinion, insofar as it relates to the amounts included for Pasadena Cottages, Inc., Pecan
Village, Inc., Villas at Bayou Park, Inc., Pear Grove, Inc., or Acres Homes Gardens, Inc., is based solely
on the report of the other auditors. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
1
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
account estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the Agency, as of August 31, 2014, and the respective changes
in financial position and, where applicable, cash flows thereof and the respective budgetary comparison
for the General Fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Summarized Comparative Information
The financial statements include summarized prior-year comparative information. Such
information does not include sufficient detail to constitute a presentation in conformity with accounting
principles generally accepted in the United States of America. The source of the information was audited
previously by other auditors and the summarized comparative information is consistent, in all material
respects, with the audited financial statements from which it has been derived. Accordingly, such
information should be read in conjunction with the Agency’s financial statements for the year ended
August 31, 2013, from which such summarized information was derived.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 4 through 10 be presented to supplement the basic
financial statements. Such information, although not part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in appropriate operational, economic, or historical
context. We and other auditors have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
2
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Agency’s basic financial statements. The introductory section, other
supplementary information, and the statistical section are presented for the purposes of additional
analysis and are not a required part of the basic financial statements. The schedule of expenditures of
federal and state awards is required by U.S. Office of Management and Budget Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations and the State of Texas Single Audit
Circular, and is also not a required part of the basic financial statements.
The other supplementary information and schedule of expenditures of federal and state awards
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the other supplementary information and
schedule of expenditures of federal and state awards are fairly stated in all material respects in relation
to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have issued our reported dated February
20, 2015, on our consideration of the Agency’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Governmental Auditing Standards in considering the Agency’s internal
control over financial reporting and compliance.
Waco, Texas
February 20, 2015
3
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
Management’s Discussion and Analysis
We present the readers of the financial statements of MHMRA of Harris County (the “Agency”) along
with this narrative overview and analysis of the financial activities for the fiscal year ended August 31,
2014. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal.
FINANCIAL HIGHLIGHTS

The assets of MHMRA exceeded its liabilities at the close of FY 2014 by $78,963,699 (net
position). Of this amount, $40,562,756 (unrestricted net position) may be used to meet the
Agency’s ongoing obligations.

MHMRA’s total net position (government-wide) increased by $17,722,704 during the fiscal
year.

The Agency’s governmental funds increased by $17,254,596 resulting in an ending fund
balance of $60,410,565.

At the end of the fiscal year, unassigned fund balance for the General Fund was $20,756,976
or 10 % of total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to MHMRA’s basic financial
statements. The Agency’s financial statements are composed of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of MHMRA’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the Agency’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial condition of the Agency is improving or
deteriorating.
The Statement of Activities presents information showing how the Agency’s net position changed during
the fiscal year. This statement includes all of the revenue and expenses generated by the Agency’s
operations. The accrual basis of accounting is used, which is similar to the method used by most
private-sector companies. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows.
4
The Statement of Net Position and the Statement of Activities include both the Agency’s basic services
including programs for Intellectual and Developmental Disabilities, Adult Mental Health, Child and
Adolescents Mental Health, Crisis Center, Community Hospital and General Administration. MHMRA
does not have any business-type activities.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources which have been
segregated for specific activities or objectives. MHMRA uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the Agency can be
divided into three categories: governmental funds, internal service funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on how money
flows into and out of those funds and the balances left at year-end that are available for spending. These
funds are reported using a method called modified accrual accounting, which measures cash and all
other financial assets that can realistically be converted to cash.
The governmental fund statements provide a detailed short-term view of the Agency’s general
government operations and the basic services it provides. Governmental fund information helps to
determine whether there are more or fewer financial resources that can be spent in the near future to
finance the Agency’s programs. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate
this comparison between governmental funds and governmental activities.
MHMRA maintains one separate governmental fund. Information is presented in the governmental fund
balance sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund
Balances for the General Fund.
MHMRA adopts an annual budget for its General Fund. A budgetary comparison statement has been
provided for the General Fund to demonstrate compliance with this budget.
The governmental fund financial statements are found on pages 14 through 20.
Internal Service Fund. MHMRA maintains an Internal Service Fund (Proprietary Fund) to account for
certain MHMRA professional liability self-insurance activities.
The internal service fund financial statements are found on pages 21 through 23.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of consumers.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of
those funds are not available to support the Agency’s programs. The accounting used for fiduciary
funds is much like that used for proprietary funds. The basic fiduciary fund financial statement can be
found on page 24 of this report.
5
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 29 through 46 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain supplementary information that is required by the Texas Health and Human
Services Commission, OMB Circular A-133 and the State of Texas Single Audit Circular.
Supplementary information can be found immediately following the notes to the financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. MHMRA’s assets exceeded its liabilities by $78,963,699 at the close of the fiscal year.
The largest portion of MHMRA’s net position (51 percent) represents the unrestricted financial
resources available for future operations. This compares to last fiscal year’s unrestricted financial
resources at 64 percent.
Another 21 percent was earmarked for Delivery System Reform Incentive Projects, while the remaining
balance of the Agency’s net position, 28 percent, reflects its investment in capital assets such as land,
buildings, vehicles and electronic equipments, less any related debt that is still outstanding. The Agency
uses these assets to provide services to the consumers that we serve. Consequently, these assets are not
available for future spending. Although the Agency’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources since the capital assets themselves cannot be used to liquidate these liabilities. The following
chart reflects a summary of net position as of August 31, 2014, with comparative figures for FY 2013:
MHMRA OF HARRIS COUNTY’S NET POSITION
Current and other assets
Non-current assets
$
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
$
Governmental Activities
2014
2013
82,783,172
$
62,069,462
30,010,157
21,531,096
112,793,329
83,600,558
22,501,398
11,328,232
17,898,602
4,460,961
33,829,630
22,359,563
21,640,340
16,760,603
40,562,756
19,361,119
2,451,869
39,428,007
78,963,699
$
61,240,995
To a large extent, the increase in net position was due to the receipt of Waiver 1115 DSRIP funds.
6
Revenues for the Agency’s governmental activities were $213,550,174 while total expenses were
$195,827,470. The change in net position of governmental activities was $17,722,704. The following
table reflects a comparison of the governmental activities between FY 2014 and FY 2013:
MHMRA OF HARRIS COUNTY’S CHANGES IN NET POSITION
2014
2013
REVENUES
Program revenues:
Charges for services:
Mental Retardation
Mental Health Adult
Mental Health Child and Adolescents
$
Crisis Center
Total charges for services
Operating grants and contributions
Mental Retardation
Mental Health Adult
Crisis Center
Community Hospital
Total operating grants and contributions
General Revenues:
Payment from Harris County
Grants not restricted to specific programs
Investment Earnings
Other income
22,460,881
17,738,233
5,236,013
3,738,072
$
49,173,199
46,839,048
15,123,265
61,559,641
11,266,418
26,781,351
28,406,319
12,350,698
39,730,287
10,106,224
15,153,128
28,493,696
143,136,994
105,834,033
18,640,633
1,992,355
308,905
273,610
24,478
Gain on sale of capital assets
Total general revenues
Total Revenues
EXPENSES
General Administration
Mental Retardation
Mental Health Adult
Crisis Center
Community Hospital
Interest on long-term debt
Total Expenses
CHANGE IN NET POSITION
$
7
23,293,826
14,864,918
5,885,760
2,794,544
(
18,510,676
1,946,248
18,917)
1,327,106
19,520
21,239,981
21,784,633
213,550,174
174,457,714
17,058,371
36,871,591
61,065,540
16,951,280
32,220,066
31,481,431
179,191
15,868,346
34,890,863
46,460,360
15,567,011
27,269,476
32,038,969
152,415
195,827,470
172,247,440
17,722,704
$
2,210,274
The table and chart below presents the net revenue (cost) of each of the Agency’s programs. The net
revenue (cost) does not reflect the revenue generated through local funding and investments.
Program Revenues and ExpensesGovernmental Activities
80000000
70000000
60000000
50000000
Revenues
$ 40000000
30000000
Expenses
20000000
10000000
0
MR
MH Adult
MH Child &
Adolescent
Crisis Center
Community
Hospital
The following chart depicts the major sources of revenues:
FINANCIAL ANALYSIS OF THE CENTER’S FUNDS
As noted earlier, MHMRA uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.
8
Governmental funds. The focus of MHMRA’s governmental funds is to provide information on nearterm inflows, outflows, and balances of expendable resources. Such information is useful in assessing
the Agency’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of the Agency’s net resources available for spending at the end of the fiscal year.
The General Fund is the chief operating fund of MHMRA. As the Agency completed the year, its
General Fund (as presented in the balance sheet on page 14) reported a fund balance of $60,410,565. A
large portion of this, or 34%, is labeled as unassigned fund balance. As a measure of the General Fund’s
liquidity, it may be useful to compare spendable (assigned and unassigned) fund balance to total fund
expenditures. Spendable fund balance totals $59,339,383 and represents 29% of total General Fund
expenditures or the equivalent of 106 days.
An analysis of significant balances follows:

Compared to the previous year, State grants and programs for FY 2014 increased by
$10,514,632 as a result of additional funding from the Texas Department of State Health
Services (DSHS) in the amount of $9,519,152 to address the waitlist and other adult and
children’s programs, $915,202 for the community hospital, as well as a slight increase in
funding from The Texas Council on Offenders with Mental Impairments.

Federal funds significantly increased by $29,295,587 compared to the prior year primarily
due to Waiver 1115 DSRIP payments which rose by $27,695,027 between fiscal years, and
the increase in Medicaid Administrative Claim revenues.

In FY 2014, local billings declined by $2,403,538 while investment earnings increased by
$327,549 due to higher yields from securities held as well as in the amount of total invested
funds.
Internal Service Fund
In FY 2014, the total assets of the Internal Service (Proprietary) Fund representing a self insurance
reserve fund slightly inched up from $2,159,337 in FY 2013 to $2,160,075.
GENERAL FUND BUDGETARY HIGHLIGHTS
A number of amendments were made to the original budget during the year. The major ones include the
increase in projected funding from the Department of State Health Services by $1,426,400, the increase
in anticipated revenue from DSRIP projects by $1,422,126, as well as the decrease in projected income
from Medicaid billings by $2,312,185. Actual figures however indicated an increase in funding from
DSHS of only $366,344 compared to the original projection, while DSRIP income posted an increase of
$4,776,104. Medicaid payment still fell under the original budget figure by $3,521,162.
On expenditures, personnel costs fell below the budget as a number of vacant positions were not filled
during the year. The budget for contracts with service agencies and professional fees was increased with
the need to hire contract psychiatrists and nurses to fill in vacancies, and the continued development of
the Topaz software. Repairs and maintenance also saw a budget escalation as major repairs planned at
the start of the year were pursued.
9
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. MHMRA’s investment in capital assets as of August 2014, amounts to $30,010,157
(net of accumulated depreciation). This investment in capital assets includes land, buildings and
improvements, equipment, vehicles and intangible assets (software).
Major changes in capital assets during the fiscal year included the following:
MHMRA OF HARRIS COUNTY’S
CAPITAL ASSETS (Net of Depreciation)
Land
Buildings & improvements
Furniture & equipment
Vehicles
Intangible Assets - Software
Fiscal Year
2014
$
5,434,585
16,509,730
1,402,235
520,722
6,142,885
Fiscal Year
2013
$
3,421,489
10,498,210
1,236,319
446,493
5,928,585
Total capital assets
$
$
30,010,157
21,531,096
$
$
Increase
(Decrease)
2,013,096
6,011,520
165,916
74,229
214,300
8,479,061
Additional information on the Agency’s capital assets can be found in Note 6 on pages 38 through 39 of
this report.
Long-term debt. At the end of the current fiscal year, the Agency had total outstanding long-term debt
of $13,617,098. A more extensive discussion about long-term debt is provided in the Notes to the Basic
Financial Statements: Note 7 - Long-Term Liabilities on page 40 of this report.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the finances of MHMRA of Harris
County and its accountability for the money received. Should you have any question about this report or
need additional financial information, please contact the Chief Financial Officer, Mental Health and
Mental Retardation Authority of Harris County, Texas, P.O. Box 25381, Houston, Texas 77265-5381.
10
BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
August 31, 2014 and 2013
2014
Primary
GovernmentGovernmental
Activities
2013
Discretely
Presented
Component
Units
Primary
GovernmentGovernmental
Activities
Discretely
Presented
Component
Units
Assets
Current assets:
Cash and cash equivalents
Investments
$
Accounts receivable, net
4,313,075
50,977,470
$
26,421,445
999,015
-
$
44,436
3,969,790
48,331,881
$
9,211,615
907,452
41,282
Inventories
Deposits
195,217
101,640
-
147,974
101,852
-
Prepaid expenses
Other assets
774,325
-
19,610
1,221
306,350
-
17,710
2,221
82,783,172
1,064,282
62,069,462
968,665
5,434,585
6,142,885
18,432,687
314,753
5,943,244
3,421,489
5,928,585
12,181,022
291,466
6,123,573
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents
Land
Intangible assets - software in development
All other capital assets, net
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Unearned revenue
Current portion of long-term obligations
30,010,157
6,257,997
21,531,096
6,415,039
$ 112,793,329
$
7,322,279
$
83,600,558
$
7,383,704
$
$
599,139
17,252
62,186
$
3,394,834
11,155,694
2,203,628
1,144,446
$
517,826
18,989
61,273
5,503,995
13,542,225
1,166,312
2,288,866
Total current liabilities
22,501,398
678,577
17,898,602
598,088
Noncurrent liabilities:
Noncurrent portion of long-term obligations
11,328,232
1,568,989
4,460,961
6,954,050
Total liabilities
33,829,630
2,247,566
22,359,563
7,552,138
Restricted for:
21,640,340
4,312,069
19,361,119
(891,750)
Delivery System Reform Incentive Projects
Unrestricted
16,760,603
40,562,756
762,644
2,451,869
39,428,007
723,316
Net Position:
Total net position
Total liabilities and net position
78,963,699
$ 112,793,329
5,074,713
$
7,322,279
The accompanying notes are an integral part of this statement.
11
61,240,995
$
83,600,558
(168,434)
$
7,383,704
STATEMENT OF ACTIVITIES
For the Year Ended August 31, 2014
Functions/Programs
Primary government:
Governmental activities:
Adult Mental Health
Mental Retardation
Child and Adolescent
Crisis Center
Community Hospital (payment to HCPC)
Total governmental activities
Component units:
HUD Programs
Fund raising activities
Total component units
Indirect
Expenses
Allocation
Expenses
$
$
$
$
17,058,371
61,065,540
36,871,591
16,951,280
32,220,066
31,481,431
179,191
195,827,470
Program Revenues
Operating
Charges for
Grants and
Services
Contributions
$
$
(17,058,371)
7,081,023
4,275,548
1,965,633
3,736,167
-
597,467
190,155
787,622
$
$
$
$
17,738,233
22,460,881
5,236,013
3,738,072
49,173,199
405,990
405,990
General revenues:
Harris County
Grants and contributions not restricted to specific programs
Investment earnings
Other income
Change in net position
Net position - beginning
Prior period adjustment
Net position - ending
12
$
$
$
$
61,559,641
15,123,265
11,266,418
26,781,351
28,406,319
143,136,994
Net (Expense) Revenue and
Changes in Net Position
Total
Governmental
Activities
$
Component
Units
11,151,311
(3,562,993)
(2,414,482)
(5,436,810)
(3,075,112)
(179,191)
(3,517,277)
244,254
244,254
(191,477)
54,099
(137,378)
$
18,640,633
1,992,355
308,905
273,610
24,478
21,239,981
17,722,704
61,240,995
78,963,699
$
2,229
3,878
6,107
(131,271)
(168,434)
5,374,418
5,074,713
STATEMENT OF ACTIVITIES
Functions/Programs
Primary government:
Governmental activities:
Adult Mental Health
Mental Retardation
Crisis Center
Community Hospital (payment to HCPC)
Component units:
HUD Programs
Indirect
Expenses
Allocation
Expenses
$
$
$
$
15,868,346
46,460,360
34,890,863
15,567,011
27,269,476
32,038,969
152,415
172,247,440
Program Revenues
Operating
Charges for
Grants and
Services
Contributions
$
$
(15,868,346)
5,895,926
4,476,498
1,997,248
3,498,674
-
593,986
64,938
658,924
$
$
$
$
14,864,918
23,293,826
5,885,760
2,794,544
46,839,048
$
39,730,287
12,350,698
10,106,224
15,153,128
28,493,696
105,834,033
402,201
402,201
$
$
$
93,114
93,114
General revenues:
Harris County
Grants and contributions not restricted to specific programs
Investment earnings
Other income
13
$
Net (Expense) Revenue and Changes
in Net Position
Total
Governmental
Activities
$
Component
Units
2,238,919
(3,722,837)
(1,572,275)
(12,820,478)
(3,545,273)
(152,415)
(19,574,359)
(191,785)
28,176
(163,609)
$
18,510,676
1,946,248
(18,917)
1,327,106
19,520
21,784,633
2,210,274
59,030,721
61,240,995
$
2,202
1,119
3,321
(160,288)
(31,042)
22,896
(168,434)
BALANCE SHEET
GOVERNMENTAL FUND
August 31, 2014 and 2013
General Fund
2014
Assets
Investments
Accounts receivable (net of allowance for uncollectible)
Receivables from other governments
Other receivables
Inventories
Deposits
Prepaid items
Total assets
$
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenue
Total liabilities
$
Fund balances:
Nonspendable:
Inventories
Prepaid items
Deposits
Committed:
Assigned:
Infrastructure development
Self insurance
Debt repayment
Compensated absences
Other purposes
Unassigned
Total fund balances
Total liabilities and fund balances
$
14
2013
4,313,075
48,817,395
1,491,907
20,869,742
4,059,796
195,217
101,640
774,325
80,623,097
$
5,503,995
13,542,225
1,166,312
20,212,532
$
$
3,969,790
46,172,544
1,414,844
7,439,636
357,135
147,974
101,852
306,350
59,910,125
3,394,834
11,155,694
2,203,628
16,754,156
195,217
774,325
101,640
147,974
306,350
101,852
16,760,603
2,451,869
5,800,000
2,000,000
8,369,817
5,247,281
404,706
20,756,976
60,410,565
80,623,097
5,800,000
2,000,000
2,169,977
3,435,430
414,460
26,328,057
43,155,969
59,910,125
$
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
August 31, 2014 and 2013
2014
Total Fund Balance
$
60,410,565
2013
$
43,155,969
Amounts reported for governmental activities in the statement of net
position are different because:
An internal service fund is used by management to charge the costs of
certain self insurance activities to the general fund. The assets and
liabilities of the internal service fund are included in governmental
activities in the statement of net position.
2,160,075
2,159,337
Capital assets used in governmental activities are not financial resources
and therefore not reported in the funds.
30,010,157
21,531,096
Long-term liabilities, current and long-term, are not due and payable with
current financial resources and therefore, are not reported in the funds.
(13,617,098)
(5,605,407)
Net position of governmental activities
$
15
78,963,699
$
61,240,995
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Years Ended August 31, 2014 and 2013
General Fund
2014
Revenues
State grants and programs
Federal grants
Harris County allocation
Local billings
Investment earnings
Miscellaneous
Total revenues
$
Expenditures
Current:
Adult mental health
Mental retardation
Child and adolescent
Crisis center
Community hospital (payment to HCPC)
General administration
Debt service:
Principal
Interest and other charges
Total expenditures
104,833,857
42,454,903
30,412,676
33,291,898
308,167
2,223,456
213,524,957
2013
$
94,319,225
13,159,316
29,273,302
35,695,436
(19,382)
2,008,041
174,435,938
60,823,678
36,663,301
16,833,144
32,169,118
31,481,431
24,344,816
46,256,059
34,821,433
15,478,211
27,212,050
32,038,969
16,372,615
1,440,160
179,191
203,934,839
842,977
152,415
173,174,729
Excess of revenues over expenditures
9,590,118
1,261,209
Other Financing Sources
Issuance of debt
Sale of capital assets
Total other financing sources
7,640,000
24,478
7,664,478
19,520
19,520
Net change in fund balance
17,254,596
1,280,729
43,155,969
41,875,240
Fund balances - beginning
Fund balances - ending
$
16
60,410,565
$
43,155,969
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
2014
Net change in fund balance - total governmental funds
$
2013
17,254,596
$
1,280,729
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives as depreciation expense. This is the amount by which depreciation
exceeded capital outlays in the current period.
8,479,061
In the statement of activities, net book value of equipment and vehicles written off
is recorded as expenses, whereas this is not reported in the governmental funds.
Thus, the change in net position differs from the change in fund balance by the net
book value of the equipment and vehicles written off.
-
Income generated from internal service funds are reported in governmental
activities.
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds. This amount is the net increase in accrued compensated
absences in the government-wide financial statements during the current fiscal
year.
$
17
2,255
(7,640,000)
Repayment of bonds, notes payable and capital leases is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
(91,918)
738
The issuance of long-term debt provides current financial resources to
governmental funds. However, this has no effect on net position.
Change in net position of governmental activities
269,393
-
1,440,160
842,977
(1,811,851)
(93,162)
17,722,704
$
2,210,274
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
Budget
Original
State Program Revenues
General revenue
Early Childhood Intervention
Services to Children with Autism
Texas Council on Offenders
with Mental Impairments
Texas Department of Criminal JusticeParole and Substance Abuse
Total state program revenues
$
Final
99,116,355
1,238,796
713,707
$
2,939,485
Federal Program Revenues
Mental Health Block Grant
Social Services Block Grant (Title XX)
TANF to Title XX Block Grant
MH Block Homeless PATH Grant
SAMHSA-Partners at Independence Heights
Delivery System Reform Incentive Payments
State Grants to Promote Health Information
Technology, Recovery Act
Administrative Claiming
100,542,755
1,238,796
927,541
Total federal program revenues
$
2,891,169
99,482,699
1,219,655
819,099
$
2,866,406
(1,060,056)
(19,141)
(108,442)
(24,763)
446,000
446,000
445,998
(2)
104,454,343
106,046,261
104,833,857
(1,212,404)
3,081,806
409,072
1,520,248
948,878
72,000
25,756,262
3,081,806
409,072
1,520,248
948,878
72,000
27,178,388
3,081,806
631,929
1,520,248
913,462
32,989
30,532,366
222,857
(35,416)
(39,011)
3,353,978
42,500
2,915,709
42,500
2,915,709
-
Leadership Education in Neurodevelopmental
and Related Disorders Training Program
Transitional Housing Program-Safe Havens
Variance
Positive/
(Negative)
Actual (Budgetary
basis)
-
2,404,723
335,867
2,404,723
335,867
5,280
2,404,955
373,659
5,280
232
37,792
34,528,856
35,950,982
42,454,903
6,503,921
28,868,855
31,031,278
30,412,676
(618,602)
918,438
884,344
24,701,847
7,793,401
2,644,298
36,942,328
910,090
794,344
22,389,662
7,836,291
2,569,302
34,499,689
993,697
940,977
21,180,685
7,384,549
2,791,990
33,291,898
83,607
146,633
(1,208,977)
(451,742)
222,688
(1,207,791)
Local Revenues
County funds
Local Billings
Patient fees and private insurance
Medicare
Medicaid
ICF/MR, HCS and THL waiver
Administrative claiming
Total local billings
Investment earnings
Miscellaneous
150,000
150,000
308,167
5,171,584
8,775,902
2,223,456
(6,552,446)
158,167
210,115,966
216,454,112
213,524,957
(2,929,155)
Total Revenues before Patient
Assistance Program
Revenues - Patient Assistance Program
Total Revenues
$
21,003,483
231,119,449
$
22,303,483
238,757,595
18
$
22,148,871
235,673,828
$
(154,612)
(3,083,767)
BUDGETARY COMPARISON STATEMENT (Continued)
GENERAL FUND
Budget
Original
Final
Actual (Budgetary
basis)
135,154,672
$
Variance
Positive/
(Negative)
Expenditures
Current:
Personnel costs
Contracts with service agencies
and professional fees
$
137,834,073
$
126,627,911
$
8,526,761
47,277,376
48,350,077
46,779,248
1,570,829
Drug costs and other supplies
2,604,341
3,812,429
2,690,778
1,121,651
Rental
2,904,640
1,324,508
816,416
508,092
Repairs and maintenance
5,516,772
9,801,474
6,748,274
3,053,200
Travel
3,842,004
3,675,192
2,969,507
346,782
349,320
885,297
Utilities
2,085,805
2,424,427
1,973,699
450,728
Other
3,919,784
4,641,627
2,273,129
2,368,498
893,994
1,439,709
1,440,160
Security services
705,685
(535,977)
Debt service:
Principal
Interest and other charges
Capital outlay
(451)
102,062
178,925
179,191
(266)
2,788,333
6,301,752
10,551,229
(4,249,477)
210,115,966
217,454,112
203,934,839
13,519,273
Total expenditures before Patient
Assistance Program
Expenditures - Patient Assistance Program
Total expenditures
Excess of revenues over expenditures
21,003,483
21,303,483
22,148,871
(845,388)
231,119,449
238,757,595
226,083,710
(12,673,885)
-
-
9,590,118
9,590,118
Issuance of debt
-
-
7,640,000
7,640,000
Sale of capital assets
-
-
24,478
24,478
-
-
7,664,478
7,664,478
Other Financing Sources
Excess of revenues and other financing
sources over expenditures
$
-
$
19
-
$
17,254,596
$
17,254,596
BUDGETARY COMPARISION STATEMENT (Continued)
BUDGET-TO-GAAP RECONCILIATION - GENERAL FUND
For The Year Ended August 31, 2014
Sources / Inflows of Resources
Total revenue as per Budgetary Comparison Statement
$
235,673,828
Differences - budget to GAAP:
Value of drugs received by patients from Patient Assistance Program (PAP) are budgetary resources,
but are not reported as revenues under GAAP.
Total revenue as per Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds
(22,148,871)
$
213,524,957
$
226,083,710
Uses / Outflows of Resources
Total expenditures as per Budgetary Comparison Schedule
Differences - budget-to-GAAP:
Value of drugs provided under Patient Assistance Program (PAP) are outflows of budgetary
resources, but are not recorded as expenditure under GAAP.
Total expenditures as per Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds
20
(22,148,871)
$
203,934,839
COMPARATIVE STATEMENT OF NET POSITION
PROPRIETARY FUND
August 31, 2014 and 2013
Governmental Activities Internal Service Fund
Self- Insurance Reserve Fund (SIRF)
2014
2013
Assets
Current Assets:
Investments
$
Total assets
2,160,075
$
2,160,075
Net Position
$
21
2,160,075
2,159,337
2,159,337
$
2,159,337
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUND
2014
Operating revenues
$
Operating expenses
2013
-
$
-
-
Nonoperating revenues:
Interest
Total nonoperating revenues
Net position - beginning of the year
Net position - end of the year
$
738
2,255
738
2,255
738
2,255
2,159,337
2,157,082
2,160,075
$
`
22
2,159,337
COMPARATIVE STATEMENT OF CASH FLOWS
PROPRIETARY FUND
2014
Cash flows from operating activities
$
2013
-
$
-
Cash flows from investing activities:
Interest income
738
2,255
Net cash provided by investing activites
738
2,255
Net increase in cash and cash equivalents
738
2,255
2,159,337
2,157,082
Total cash and cash equivalents, beginning of year
Total cash and cash equivalents, end of year
$
23
2,160,075
$
2,159,337
COMPARATIVE STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUND
August 31, 2014 and 2013
2014
2013
Assets
$
21,886
$
11,758
Liabilities
Due to clients
$
21,886
$
11,758
24
COMBINING STATEMENT OF NET POSITION
DISCRETELY PRESENTED COMPONENT UNITS
August 31, 2014
Pasadena
Cottages, Inc.
(May 31, 2014)
Assets
Current assets:
Accounts receivable
Prepaid expenses
Other assets
Noncurrent assets:
Capital assets, net
Total assets
Liabilities
Accounts payable
Accrued interest payable
Deposits payable
$
$
$
Total liabilities
Net Position:
Unrestricted
Total net position
6,647
3,714
10,361
45,971
163,479
209,450
219,811
5,180
2,248
125
10,643
18,196
Pecan
Village, Inc.
$
$
$
289,150
307,346
$
(136,314)
48,779
(87,535)
219,811 $
58,771
9,750
7,585
471
76,577
92,682
795,308
887,990
964,567
58,508
4,672
9,752
72,932
Villas at Bayou
Park, Inc.
Pear Grove, Inc.
$
$
41,016
15,272
1,956
58,244
60,755
1,708,246
1,769,001
1,827,245
$
$
126,492
4,262
130,754
1,099,700
1,172,632
$
$
110,139
240,893
(314,144)
106,079
(208,065)
964,567 $
1,598,107
(11,755)
1,586,352
1,827,245 $
25
145,261
6,151
3,202
750
155,364
72,335
1,462,200
1,534,535
1,689,899
197,543
3,296
41,791
242,630
Acres Homes
Garden, Inc.
$
$
$
70,000
312,630
1,350,409
26,860
1,377,269
1,689,899
$
13,324
4,761
3,153
21,238
43,010
1,814,011
1,857,021
1,878,259
97,148
2,649
99,797
Friends of
MHMRA
$
$
$
733,996
8,502
742,498
742,498
114,268
114,268
Total
$
$
$
999,015
44,436
19,610
1,221
1,064,282
314,753
5,943,244
6,257,997
7,322,279
599,139
2,248
15,004
62,186
678,577
99,797
114,268
1,568,989
2,247,566
1,814,011
(35,549)
1,778,462
1,878,259 $
628,230
628,230
742,498
4,312,069
762,644
5,074,713
7,322,279
$
COMBINING STATEMENT OF ACTIVITIES
For the Year Ended August 31, 2014*
Net (Expense) Revenue
Program Revenues
Operating Grants
Charges for
and
Services
Contributions
Expenses
Pasadena
Cottages,
Inc.
and Changes in Net Position
Villas at
Pecan Village,
Pear Grove, Acres Homes
Bayou Park,
Inc.
Inc.
Garden, Inc.
Inc.
Friends of
MHMRA
Totals
Pasadena Cottages, Inc.
HUD Section 811 program
$
112,648
$
140,760
$
-
-
27,389
Total Pasadena Cottages, Inc.
140,037
140,760
-
123,409
89,215
-
109,421
59,476
-
119,382
68,414
-
105,218
48,125
-
190,155
-
$
-
28,112
$
(27,389)
28,112
(27,389)
723
723
Pecan Village, Inc.
$
(34,194)
(34,194)
Villas at Bayou Park, Inc.
$
(49,945)
(49,945)
Pear Grove, Inc.
$
(50,968)
(50,968)
Acres Homes Garden, Inc.
$
(57,093)
(57,093)
Friends of MHMRA
$
787,622
$
405,990
244,254
$
$
54,099
244,254
54,099
(137,378)
General revenues:
Investment earnings
21
Other income
-
63
56
194
33
1,862
2,229
1,859
1,097
225
697
-
3,878
419
730
1,862
21
1,922
1,153
744
(32,272)
(48,792)
(88,279)
-
$
(87,535) $
* Pasadena Cottages, Inc. is reported for the year ended May 31, 2014.
26
(175,793)
(344,066)
(50,549)
9,910
-
1,979,210
1,417,908
(208,065) $
1,586,352
$ 1,377,269
(56,363)
55,961
(142,475)
572,269
1,977,300
$
1,778,462
$
628,230
6,107
(131,271)
(168,434)
5,374,418
$ 5,074,713
COMBINING STATEMENT OF NET POSITION
August 31, 2013
Pasadena
Cottages, Inc.
(May 31, 2013)
Assets
Current assets:
Accounts receivable
Prepaid expenses
Other assets
Noncurrent assets:
Capital assets, net
Total assets
Liabilities
Accounts payable
Accrued interest payable
Deposits payable
$
13,847
Pecan
Village, Inc.
$
59,786
Villas at Bayou
Park, Inc.
$
46,458
Acres Homes
Garden, Inc.
Pear Grove, Inc.
$
141,669
$
28,279
Friends of
MHMRA
$
Total
617,413
$
907,452
1,303
9,750
1,150
16,627
4,761
7,691
41,282
2,688
6,317
2,082
3,609
3,014
-
17,710
471
1,000
750
-
-
76,324
50,690
162,655
17,838
36,054
2,221
625,104
968,665
42,206
89,993
55,697
67,695
35,875
-
291,466
174,111
822,747
1,753,997
1,511,417
1,861,301
-
6,123,573
216,317
912,740
1,809,694
1,579,112
1,897,176
-
6,415,039
$
234,155
$
989,064
$
1,860,384
$
1,741,767
$
1,933,230
$
625,104
$
7,383,704
$
10,490
$
48,874
$
109,946
$
199,197
$
96,484
$
52,835
$
517,826
2,321
100
-
-
-
-
-
2,321
6,531
5,155
2,961
1,921
-
16,668
9,730
9,752
41,791
-
-
61,273
22,641
65,157
115,101
-
243,949
98,405
52,835
598,088
299,793
1,099,700
2,089,349
1,487,908
1,977,300
-
6,954,050
322,434
1,164,857
2,204,450
1,731,857
2,075,705
52,835
7,552,138
Total liabilities
Net Position:
Unrestricted
Total net position
$
(135,412)
(286,705)
47,133
110,912
(88,279)
(175,793)
234,1550
$
989,0640
(335,352)
$
(18,282)
(115,999)
(8,714)
28,192
(26,476)
572,269
723,316
(344,066)
9,910
(142,475)
572,269
(168,434)
1,860,384
27
$
1,741,767
$
1,933,230
-
$
625,104
(891,750)
$
7,383,7040
COMBINING STATEMENT OF ACTIVITIES
For the Year Ended August 31, 2013*
Program Revenues
Expenses
Charges for
Services
Operating Grants
and Contributions
Pasadena
Cottages, Inc
and Changes in Net Position
Villas at
Pecan Village,
Pear Grove, Acres Homes
Bayou Park,
Inc.
Inc.
Garden, Inc.
Inc.
Friends of
MHMRA
Totals
Pasadena Cottages, Inc.
$
125,462
28,230
Total Pasadena Cottages, Inc.
153,692
$
140,400
$
-
-
$
14,938
$
14,938
-
(28,230)
(28,230)
140,400
-
(13,292)
(13,292)
115,303
89,738
-
105,513
52,582
-
113,836
69,086
-
105,642
50,395
-
64,938
-
93,114
Pecan Village, Inc.
$
(25,565)
(25,565)
Villas at Bayou Park, Inc.
$
(52,931)
(52,931)
Pear Grove, Inc.
$
(44,750)
(44,750)
Acres Homes Garden, Inc.
$
(55,247)
(55,247)
Friends of MHMRA
Total
$
658,924
$
402,201
$
$
28,176
28,176
93,114
(163,609)
General revenues:
Investment earnings
21
Other income
-
21
116
52
198
25
1,790
2,202
50
9
168
892
-
1,119
166
61
366
917
1,790
3,321
(13,271)
(25,399)
(52,870)
(44,384)
(54,330)
29,966
(160,288)
(93,535)
(150,394)
(291,196)
54,294
(92,514)
542,303
(31,042)
18,527
-
4,369
$
(88,279) $
-
-
(175,793) $ (344,066) $
* Pasadena Cottages, Inc. is reported for the year ended May 31, 2013.
28
9,910
$
(142,475) $
572,269
22,896
$
(168,434)
Notes to the Basic Financial Statements
Note 1 – Reporting Entity – Basis of Presentation
Primary Government
Mental Health and Mental Retardation Authority of Harris County (the “Agency”) is a public agency
that was established as a result of the Texas Mental Health and Mental Retardation Act of 1965. This
Act provided for the creation of local boards of trustees to develop and implement community-based
mental health and mental retardation services. The Agency is governed by a Board of Trustees
appointed by the Commissioners Court of Harris County (the “County”). The County has the ability to
appoint and remove the members of the governing Board of Trustees of the Agency. For financial
reporting purposes, the Agency is considered a component unit of the County.
The accompanying financial statements present the Agency’s primary government and component units,
entities for which the Agency is considered to be financially accountable.
Component Units
Pasadena Cottages, Inc., a Texas non-profit corporation (“Pasadena”) was organized in 1992 to purchase
and maintain property for residential programs for individuals with intellectual and developmental
disabilities (IDD). The Agency’s Board of Trustees appoints the Board of Trustees of Pasadena and has
the ability to remove Trustees; thus, the Agency is financially accountable for Pasadena. Accordingly,
Pasadena has been included in the Agency’s basic financial statements as a discretely presented
component unit.
Pecan Village, Inc., a Texas non-profit corporation (“Pecan Village”) was organized in 2000 to provide
homes for persons with mental illness by acquiring and managing residential property under the
Department of Housing and Urban Development (HUD) Section 811 grant. The Agency’s Board of
Trustees appoints the Board of Trustees of Pecan Village and has the ability to remove Trustees; thus,
the Agency is financially accountable for Pecan Village. Accordingly, Pecan Village has been included
in the Agency’s basic financial statements as a discretely presented component unit.
Villas at Bayou Park, Inc., a Texas non-profit corporation (“Villas at Bayou”) was organized in 2001 to
provide homes for persons with mental illness by acquiring and managing residential property under the
Trustees appoints the Board of Directors of Villas at Bayou and has the ability to remove Directors;
thus, the Agency is financially accountable for Villas at Bayou. Accordingly, Villas at Bayou has been
included in the Agency’s basic financial statements as a discretely presented component unit.
Pear Grove, Inc., a Texas non-profit corporation (“Pear Grove”) was organized in 2004 to provide
homes for persons with mental illness by acquiring and managing residential property under the
Trustees appoints the Board of Trustees of Pear Grove and has the ability to remove Trustees; thus, the
Agency is financially accountable for Pear Grove. Accordingly, Pear Grove has been included in the
Agency’s basic financial statements as a discretely presented component unit.
29
Acres Homes Garden, Inc., a Texas non-profit corporation (“Acres Homes”) was organized in 2008 to
provide homes for persons with mental illness by acquiring and managing residential property under the
Trustees appoints the Board of Trustees of Pear Grove and has the ability to remove Trustees; thus, the
Agency is financially accountable for Acres Homes. Accordingly, Acres Homes has been included in
the Agency’s basic financial statements as a discretely presented component unit.
Friends of MHMRA of Harris County (“Friends of MHMRA”) was organized during 2005 to provide
charitable services and increase awareness in the community. The Agency’s Board of Trustees appoints
the Board of Trustees of Friends of MHMRA and has the ability to remove Trustees; thus, the Agency is
financially accountable for Friends of MHMRA. Accordingly, Friends of MHMRA has been included
in the Agency’s basic financial statements as a discretely presented component unit.
Financial statements of these component units may be obtained from the Chief Financial Officer, Mental
Health and Mental Retardation Authority of Harris County, Texas, P.O. Box 25381, Houston, Texas
77265-5381.
Government-wide and Fund Financial Statements
The financial statements of the Agency have been prepared in conformity with generally accepted
accounting principles as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted primary standard-setting body for establishing governmental accounting and
financial reporting principles. The Agency's significant accounting policies are described below.
Revenue and expenditure classifications in the fund financial statements conform to requirements
codified in Guidelines for Annual Financial and Compliance Audits of Community Mental Health and
Mental Retardation Centers (21st Revision) published by the Texas Health and Human Services
Commission (HHSC).
Measurement Focus and Basis of Accounting
Government-wide Financial Statements
The statement of net position and statement of activities display information about the Agency as a
whole. The statement of net position and statement of activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses,
assets, and liabilities are recognized when the underlying transactions take place. Certain eliminations
have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables
and receivables. All internal balances in the statement of net position have been eliminated. In the
statement of activities, internal service fund transactions have been eliminated. Government-wide
financial statements do not include fiduciary funds or component units that are fiduciary in nature.
Program revenues are derived from state and federal grants and third party billings for services rendered.
General revenues are primarily derived from the County budget allocation for the Agency. Indirect
expenses are allocated to individual functions based on the percentage of actual direct costs in
accordance with HHSC reporting guidelines.
30
Fund Financial Statements
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. Governmental fund financial statements are presented using current financial resources
measurement focus and modified accrual basis of accounting. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet. Fiduciary fund financial
statements are presented using the economic resources measurement focus and accrual basis of
accounting. The operating statements of these funds present increases and decreases in net current
assets. Under the modified accrual basis of accounting, revenues are recognized when they become
susceptible to accrual; that is, when they become both measurable and available to finance expenditures
of the fiscal period. “Measurable” means the amount of the transaction can be determined and
“available” means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. The Agency considers revenue to be available when it is collected
within 120 days of the end of the current fiscal period. Significant revenues susceptible to accrual under
this method are principally billings on reimbursable type grants and awards where revenue is recognized
when services are rendered or when reimbursable expenditures are incurred. Client fees are recorded at
the net realizable amounts. Medicaid and Medicare revenue is recognized when the services are
provided. Unearned revenue arises when resources are received before there is a legal claim to them,
such as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent
periods when there is a legal claim to the resources, the liability for unearned revenue is removed from
the balance sheet and revenue is recognized.
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Description of Funds
The Agency’s accounts are organized on the basis of funds, each of which is considered a separate
accounting entity with a self-balancing set of accounts. All transactions are accounted for in funds, as
follows:
Governmental Funds
General Fund – The General Fund is the general operating fund of the Agency. There are no
legal requirements to account for financial resources in any governmental fund type other than
the General Fund.
Proprietary Funds
Internal Service Funds – Permitted for any activity that provides goods or services to other
funds, departments, or agencies of the primary government and its component units, or to other
governments, on a cost-reimbursement basis when the reporting government is the predominant
participant in the activity.
Self-Insurance Reserve Fund - This internal service fund is used to account for certain
self-insurance activities for professional liabilities.
31
Fiduciary Funds
Agency Funds – Used to account for assets held as an agent for individuals and other
governmental entities. These funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations.
Client Trust Fund - This fund is used to account for the receipt and distribution of the
supplemental security income of eligible clients. As invoices are submitted for items
such as clients’ rent, utilities, and food, clients are reimbursed using the funds available
from their account.
Budgetary Information
The Agency’s annual budget for the General Fund is prepared based on estimated expenditures provided
on a unit basis summarized by program category. The budget is submitted to the Board of Trustees.
The budget must have the Board of Trustees’ approval and that of the Texas Department of State Health
Services (“DSHS”) and the Texas Department of Aging and Disability Services (“DADS”). All annual
appropriations lapse at fiscal year-end.
Contract/budget negotiations are scheduled by DSHS and DADS at which time contract performance
measures and funding amounts are negotiated. The contract and/or budget are revised to incorporate any
modifications agreed upon and resubmitted to DSHS and DADS. The final budget is approved by
DSHS and DADS, generally before the beginning of the new fiscal year.
Budgetary control is maintained at the program level. The Agency’s management is authorized to
transfer budgeted amounts within and among programs. Revisions that alter total revenue or total
expenditures by more than $10,000 must be approved by the Board of Trustees.
Note 2 – Summary of Significant Accounting Policies
Cash and Investments
The Agency’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.
It is the Agency’s policy to secure deposits with banks by collateral provided by the institutions, for
amounts in excess of the Federal Deposit Insurance Corporation insurance. The collateral is held in the
Federal Reserve account of an independent third-party agent.
The Board of Trustees of the Agency authorizes management to invest with certain stipulations in
obligations of the United States or its agencies and instrumentalities; direct obligations of the State of
Texas or its agencies and instrumentalities; collateralized mortgage obligations directly issued by a
federal agency or instrumentality of the United States; other obligations, the principal and interest of
which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of
Texas or the United States or their respective agencies and instrumentalities; Prime Domestic Bankers
Acceptances; obligations of states, agencies, counties, cities and other political subdivisions of any state
rated as to investment quality by a nationally recognized investment firm not less than A or its
equivalent; fully collateralized direct repurchase agreements; certificates of deposit issued by a state
bank, national bank or savings and loan association domiciled in this state; commercial paper; and SECregistered, no-load money market mutual funds.
32
During the years ended August 31, 2014 and 2013, the Agency did not own any types of securities other
than those permitted by statute. Investments for the Agency are reported at fair value.
Accounts Receivable
Accounts receivable from patients and insurance carriers (including Medicare and Medicaid) for
services rendered are reduced by the amount of such billings deemed by management to be ultimately
uncollectible. The Agency provides for an amount of uncollectible patient fees using the reserve method
based on past collection history.
Inventory
Inventory consists of expendable supplies and drugs held for consumption and are valued at the lower of
cost (first-in, first-out) or market. Under the system of accounting for inventory, supplies and drugs are
recorded as expenditures/expenses when consumed rather than when purchased.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
Capital Assets
Capital assets with useful lives of more than one year are stated at cost. Donated capital assets are
valued at their estimated fair market value on the date received. The Agency capitalizes assets with an
initial, individual cost of $5,000 or more. Depreciation is computed using the straight-line method over
the estimated useful lives of the assets. No depreciation is calculated on land. Depreciation expense on
assets specifically identified with a function/program is included in its direct expenses, and the
depreciation on shared capital assets are included ratably. The following lives are used:
Buildings
Building improvements
Furniture, machinery, vehicles, and other equipment
Telecommunications and peripheral equipment
Buildings
Building improvements
Furniture, machinery, vehicles, and other equipment
Telecommunications and peripheral equipment
45 years
20 years
5-20 years
10 years
45 years
20 years
5-20 years
10 years
Unearned Revenue
Unearned revenue arises when resources are received before there is a legal claim to them, such as when
grant monies are received prior to the incurrence of qualifying expenditures/expenses. In subsequent
periods when there is a legal claim to the resources, the liability for unearned revenue is removed from
the balance sheet and revenue is recognized.
33
Compensated Absences
The Agency provides paid time off (PTO) benefits to its employees. Employees are permitted to
accumulate accrued PTO, subject to maximum limits based on length of service, and may redeem
unused PTO hours for cash upon voluntary termination of employment. Involuntary terminations result
in no PTO payout. Payment for unused PTO hours is subject to limits ranging from 0 to 234 hours based
on length of service. Any accrued PTO hours in excess of the maximum allowed to be accrued are lost,
if not currently used. The liability for such leave is recorded as incurred in the government-wide and
proprietary fund financial statements. A liability for those amounts is recorded in the governmental
funds only if the liability has matured as a result of employee resignations or retirements.
Risk Management
The Agency is exposed to various risks of loss related to tort; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; doctors’ malpractice; and natural disasters.
The Agency was covered by insurance for these various risks at a cost considered to be economically
justifiable.
During fiscal year 2003, due to a lack of availability of insurance coverage and the costs of available
coverage, the Agency stopped purchasing excess insurance coverage for physicians’ professional
liabilities. The Agency has purchased commercial insurance for claims for $1,000,000 per incident and
$3,000,000 per annum and has increased the umbrella coverage to $2,000,000 per incident. The Agency
retains all risk over and above these amounts. During fiscal year 2005, the Agency established the SelfInsurance Reserve Fund “SIRF” (an internal service fund) to account for and finance these uninsured
risks (third level of professional liability coverage). Amounts payable to the SIRF and loss reserves are
determined by management in consultation with an independent actuary based on historical claim
information to pay prior and current-year claims and to establish a reserve for future catastrophic losses.
A liability for a claim is established if information indicates that it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss is reasonably estimable.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
Fund Balance
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. The categories are as follows:

Nonspendable fund balance – amounts that are not in a spendable form (such as inventory or
prepaid items)
34

Restricted fund balance – amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional provisions, or by
enabling legislation

Committed fund balance – amounts that can be used only for the specific purposes determined by
a formal action of the Agency’s highest level of decision-making authority. The Board of
Trustees is the highest level of decision-making authority for the Agency that can, by adoption of
a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation
imposed by the resolution remains in place until a similar action is taken (the adoption of another
resolution) to remove or revise the limitation.

Assigned fund balance – amounts the Agency intends to use for a specific purpose; intent can be
expressed by the Board of Trustees, board committees or by the executive director.

Unassigned fund balance – amounts that are available for any purpose; these amounts are
reported only in the General Fund.
It is the goal of the Agency to achieve and maintain an unassigned fund balance in the General Fund
equal to a minimum of 300% of monthly expenditures or the equivalent of 90 days operating
expenditures. The Agency considers a balance of less than 100% of monthly expenditures or the
equivalent of 30 days of operating expenditures to be cause for concern, barring unusual or deliberate
circumstance.
When multiple categories of fund balance are available for expenditure (for example, a construction
project is being funded partly by a grant, funds set aside by the Board, and unassigned fund balance), the
Agency will start with the most restricted category and spend those funds first before moving down to
the next category with available funds.
Note 3 – Reconciliation of Government-wide and Fund Financial Statements
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation of Total Fund Balance of Governmental
Funds and Net Position of Governmental Activities as reported in the Statement of Net Position. One
element of that reconciliation explains, “Long-term liabilities, current and long-term, are not due and
payable with current financial resources and therefore, are not reported in the funds.” The details of this
$(13,617,098) difference are as follows:
Notes payable
$(
(
8,369,817)
5,247,281)
Net adjustment to reduce Total Fund Balance of Governmental
Funds to arrive at Net Position of Governmental Activities
$(
13,617,098)
35
Explanation of Certain Differences Between the Governmental Funds Statement of Revenue,
Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities
Another element of that reconciliation explains, “Governmental funds report capital outlays as
expenditures. However, in the statement of activities, the costs of these assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays
exceeded depreciation expense in the current period.” The details of this $8,479,061 difference are as
follows:
Capital outlay
Depreciation expense
$
(
Net adjustment to reduce Total Fund Balance of Governmental
Funds to arrive at Net Position of Governmental Activities
$
10,551,229
2,072,168)
8,479,061
Note 4 – Deposits and Investments
Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure,
the Agency’s deposits may not be returned to it. Deposits are exposed to custodial credit risk if they are
not insured or collateralized. As of August 31, 2014 and 2013, the deposit balances per various financial
institutions were $4,545,887 and $4,395,099, respectively. The Agency’s deposits are not exposed to
custodial credit risk since all deposits are collateralized 102% of the depository balance less an amount
insured by the FDIC.
As of August 31, 2014, the Agency had the following investments:
Investment
U.S. Government Agency Securities
Federal National Mortgage Assoc.
Federal Home Loan Mortgage Corp.
Federal Home Loan Bank
Federal Farm Credit Bank
Maturity
732 days
757 days
513 days
283 days
AA+
AA+
AA+
AA+
Certificates of Deposit
Certificates of Deposits (13)
343 days
N/A
Local Government Investment Pool
TexPool Investment Fund
48 days
AAAm
Fair
Value
Rating
$
4,464,104
$
36
13,094,852
1,997,814
7,999,148
2,001,134
21,420,418
50,977,470
Quoted market prices are the basis of the fair value for the U.S. Government Agency securities. The
amount of increase or decrease in the fair value of investments during the current year is included in the
Agency’s investment income as follows:
Interest income - General Fund
Interest income - Proprietary Fund
Unrealized gain (loss) on temporary investments
Investment earnings
$
$
Primary
Government
269,186
738
38,981
308,905
$
$
Component
Units
2,229
2,229
Custodial Credit Risk – Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
Agency will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. Agency securities are fully guaranteed by the government of the United
States.
Interest Rate Risk
The Agency’s formal investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. Financial assets are invested only in
investments whose maturities do not exceed five years at the time of purchase. In addition, the average
maturity of the overall portfolio shall not exceed five years.
Credit Risk
State law limits investments in commercial paper, corporate bonds, and mutual bond funds to the top
two ratings issued by nationally recognized statistical rating organizations. The Agency’s investment
policy further limits its investment choices by excluding (1) reverse repurchase agreements, (2) options
or future contracts, (3) obligations whose payments represent the coupon payments on the outstanding
principal balance for the underlying mortgage backed security collateral and pays no principal, (4)
obligations whose payment represents the principal stream of cash flow from the underlying mortgage
backed security and bears no interest, (5) collateralized mortgage obligations the interest rate of which is
determined by an index that adjusts opposite to the changes in the market index and (6) obligations
whose interest payment is derived from changes in a market index. As of August 31, 2014, Moody’s
and Standard & Poor’s Investment Services have assigned the above credit ratings which reflect the
extremely strong protection that the Agency’s portfolio investments provide against losses from credit
defaults or credit deterioration.
At August 31, 2014 and 2013, investments of $21,420,418 and $24,108,606 were held by the Texas
Local Government Investment Pool (TexPool). The State Comptroller of Public Accounts exercises
oversight responsibility over the Texas Local Government Investment Pool (TexPool). Oversight
includes the ability to significantly influence operations, designation of management and accountability
for fiscal matters. Additionally, the State Comptroller of Public Accounts has established an advisory
board composed of both participants in TexPool and other persons who do not have a business
relationship with TexPool. The Advisory Board members review the investment policy and management
fee structure. TexPool is rated AAAm by Standard & Poor’s. As a requirement to maintain the rating,
weekly portfolio information is submitted to both Standard & Poor’s and the Office of the State
Comptroller of Public Accounts for review.
37
TexPool operates in a manner consistent with the Securities and Exchange Commission’s Rule 2a7 of
the Investment Company Act of 1940. TexPool uses amortized cost rather than market value to report
net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the same
value as the value in TexPool shares.
Additional information on TexPool can be obtained by contacting Administrative Offices, TexPool
Participant Service, c/o Federated Investors, Inc., 1001 Travis Avenue, Suite 1400, Houston, Texas
77002.
Note 5 – Accounts Receivable
Accounts receivable are comprised of the following balances at August 31, 2014 and 2013 for the
primary government:
2014
Accounts receivable:
Harris County
State and federal
3rd part billings (net of allowance for uncollectible
amounts of $2,975,582 and $1,483,675, respectively)
Other receivables
Total accounts receivable
$
2013
15,549,084
8,829,194
$
1,491,907
551,260
26,421,445
$
3,364,462
4,045,053
1,414,844
387,256
9,211,615
$
Note 6 – Capital Assets
A summary of changes in general capital asset balances for the year ended August 31, 2014, is as
follows:
Primary Government
Balance of as
September 1, 2013
Governmental activities
Capital assets, not being depreciated:
Land
$
3,421,489
5,928,585
Additions
$
2,013,096
214,300
Balance as of
August 31, 2014
Retirements
$
-
$
9,350,074
2,227,396
Capital assets being depreciated:
Buildings and improvements
Furniture and equipment
Vehicles
25,343,822
6,331,495
1,456,497
7,589,187
505,163
229,483
47,000
56,975
32,933,009
6,789,658
1,629,005
Total capital assets being depreciated
33,131,814
8,323,833
103,975
41,351,672
Total capital assets at historical cost
Less accumulated depreciation for:
Vehicles
42,481,888
10,551,229
103,975
52,929,142
14,845,612
5,095,176
1,010,004
1,577,667
339,247
155,254
47,000
56,975
16,423,279
5,387,423
1,108,283
Total accumulated deprecation
20,950,792
2,072,168
103,975
22,918,985
Total capital assets, not being depreciated
Governmental activities capital assets, net
$
21,531,096
38
$
8,479,061
-
5,434,585
6,142,885
$
-
11,577,470
$
30,010,157
A summary of changes in general capital asset balances for the year ended August 31, 2013, is as
follows:
Primary Government
Balance as of
September 1, 2012
Capital assets, not being depreciation:
Land
$
3,421,489
5,102,008
Additions
$
826,577
Balance as of
August 31, 2013
Retirements
$
-
$
3,421,489
5,928,585
8,523,497
826,577
-
9,350,074
Capital assets being depreciated:
Vehicles
25,343,822
7,895,973
1,129,972
353,614
380,742
1,918,092
54,217
25,343,822
6,331,495
145,497
Total capital assets being depreciated
34,369,767
734,356
1,972,309
33,131,814
Total capital assets at historical cost
Less accumulated depreciation for:
Vehicles
42,893,264
1,560,933
1,972,309
42,481,888
13,977,920
6,611,320
950,403
867,692
310,030
113,818
1,826,174
54,217
14,845,612
5,095,176
1,010,004
Total accumulated depreciation
21,539,643
1,291,540
1,880,391
20,950,792
Total capital assets, not being depreciated
Governmental activities capital assets, net
$
21,353,621
$
269,393
$
91,918
$
21,531,096
Depreciation expense for the years ended August 31, 2014 and 2013 were $2,072,168 and $1,291,540,
respectively, and were charged to the following functions and activities:
2014
Primary Government
Governmental Activities:
General administration
Adult mental health
Mental retardation
Child and adolescent
Crisis center
$
$
39
1,064,169
421,127
227,788
118,136
240,948
2,072,168
2013
$
$
329,684
403,224
222,102
119,255
217,275
1,291,540
Note 7 – Long-Term Liabilities
Long-term liability activity for the year ended August 31, 2014 was as follows:
Balance as of
September 1, 2013
Additions
Balance as of
August 31, 2014
Reductions
Amounts
Due within
One Year
Notes payable
$
2,169,977 $
3,435,430
7,640,000 $(
3,396,143 (
1,440,160) $
1,584,292)
8,369,817 $
5,247,281
2,038,866
250,000
Total
$
5,605,407 $
9,490,244 $(
1,478,553) $
13,617,098 $
2,288,866
Long-term liability activity for the year ended August 31, 2013 was as follows:
Balance as of
September 1, 2012
Additions
Balance as of
August 31, 2013
Reductions
Amounts
Due within
One Year
Notes payable
$
3,012,954 $
3,342,268
$(
1,302,382 (
842,977) $
1,209,220)
2,169,977 $
3,435,430
894,446
250,000
Total
$
6,355,222 $
1,302,382 $(
2,052,197) $
5,605,407 $
1,144,446
The Agency has issued notes payable to provide funds for the acquisition of capital assets. In fiscal year
2000, the Agency entered into a note payable with Bank of America that carries an interest rate of 5.8%,
is payable in monthly payments of $82,983, and is collateralized by a security and deed of trust on
related property through December 2015. In the current fiscal year, the Agency entered into a note
payable to JPMorgan Chase Bank that carries an interest rate of 1.99%, is payable in semi-annual
payments of $545,714 plus interest, and is secured by a security and deed of trust on related property
through December 2021.
Debt service requirements for the notes payable as of August 31, 2014 are as follows:
Year Ending August 31,
2015
2016
2017
2018
2019
2020
2021
$
$
Principal
2,038,865
1,419,522
1,091,429
1,091,429
1,091,429
1,091,429
545,714
8,369,817
$
$
Interest
186,719
119,926
93,605
71,584
49,563
27,602
5,490
554,489
$
$
Total
2,225,584
1,539,448
1,185,033
1,163,012
1,140,991
1,119,030
551,204
8,924,302
Provisions of the loan agreement relating to a note payable contain certain covenants requiring or
restricting: (1) the Agency’s cash and investments in the General Fund equal, at a minimum, to six
weeks of “current operating expenses”, (2) the Agency to maintain a “Debt Service Coverage Ratio” of
1.0x for each consecutive two fiscal years, (3) the Agency’s ability to pledge or mortgage assets without
prior written consent and (4) the Agency’s ability to enter into new lease obligations in excess of
$1,000,000. The “current operating expenses” and “Debt Service Coverage Ratio” are defined in the
debt indenture. The Agency was in compliance with these requirements at August 31, 2014.
40
Note 8 – Operating Leases
The Agency leases certain administrative, residential and outpatient facilities under operating lease
agreements. Rent expenditures/expense under operating leases, including annually renewable operating
leases for equipment and vehicles, amounted to $816,416 and $716,357 in 2014 and 2013, respectively.
The future minimum rental payments required under non-cancelable operating leases having remaining
terms in excess of one year as of August 31, 2014 are as follows:
Year ending August, 31
2015
2016
2017
2018
2019
2020-2023
$
71,700
41,761
21,279
16,899
16,849
67,396
235,884
$
Note 9 – Related Party Transactions
The Agency, a component unit of the County, obtains certain community services from the County
under contractual agreements. Expenditures/expenses under such contracts amounted to $121,618 and
$259,583 for the years ended August 31, 2014 and 2013, respectively.
Note 10 – Pension Plan
The defined contribution pension plan (the “Plan”) was established by the Agency for substantially all of
its employees, effective January 1, 1989. The plan document was updated and amended effective
January 1, 2000.
The condensed cash basis financial statements for the Plan’s fiscal years ended December 31, 2013 and
2012 are as follows:
Statement of Fiduciary Net Assets
December 31, 2013 and 2012
2013
2012
Assets
Investments, at fair market value
Total assets
$
$
58,239,880
58,239,880
$
$
47,178,105
47,178,105
Net Position
Held in trust for pension benefits
and other purposes
$
58,239,880
$
47,178,105
41
Statement of Changes in Fiduciary Net Assets
For the Years Ended December 31, 2013 and 2012
Additions
Contributions:
Employer
Forfeitures
Total contributions
Investment earnings:
Net increase/(decrease) in fair value investments
Dividends/Interest
Other
Total investment earnings
Total additions
Deductions
Benefits
Others
Total deductions
Net position - beginning of year
Net position - end of year
$
(
$
2013
2012
5,171,546 $
129,223) (
5,042,323
5,034,706
275,000)
4,759,706
2,511,486
710,664
98,128
8,629,042
13,671,365
3,820,725
663,862
96,631
4,581,218
9,340,924
2,511,486
98,104
2,609,590
11,061,775
47,178,105
58,239,880
2,021,275
96,631
2,117,906
7,223,018
39,955,087
47,178,105
$
In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. Employees are eligible to participate at the next entry date as defined by the plan
after working 1,560 hours and being employed on December 31 of the plan year. The plan requires that
the Agency contribute an amount equal to 5% of the eligible employee’s annual base salary. Employee
contributions are not permitted. If a participant in the plan terminates employment, the non-vested
account balance is forfeited. Effective plan year 2008, the Agency instituted an employee matching
program. Eligible employees must open and participate in a 403(b) plan. The match is dollar for dollar
up to 5% of the employee’s annual base salary, with a minimum of 1%.
The plan allows forfeitures to be applied to reduce sponsor contributions for the plan year in which the
forfeitures occurred. Forfeitures for the plan years 2013 and 2012 amounted to $204,691 and $275,000,
respectively, of which $129,223 and $275,000, respectively, was used against the Agency’s
contributions for the year ended August 31, 2014 and 2013, respectively.
Beginning Plan year 2004, contributions are made on an annual basis, and employees must also be
actively employed with the Agency on the last day of the Plan year to receive the matching
contributions.
Effective Plan year 2005, the Agency also will make a supplemental contribution each year if the
amount in the forfeiture account after Plan expenses exceeds $200,000. To receive this supplemental
contribution the employees must have earned six years of service and be employed at the end of the plan
year. The percentage of contribution varies from 1% to 3% depending on the number of years of service.
Employees who retire, die or become permanently disabled during the year are entitled to the full
contribution for the year.
42
Agency contributions made on account of the 2004 plan year or any subsequent plan year, as adjusted by
earning and losses thereon, will vest 100% after 5 years of service with no vesting prior to 5 years.
A favorable determination letter of the defined contribution plan was received on October 10, 2000 from
the Internal Revenue Service. Employer contributions for the fiscal years ended August 31, 2014 and
2013 amounted to $6,131,092 and $5,541,669, respectively.
The Plan’s investments as of December 31, 2013 and 2012 are as follows:
Fair Value
2013
Wells Fargo Bank Investment Funds for
Employee Benefit Trusts:
Advantage Asset Allocation Fund
Stable Return Fund
Advantage Index Fund
Bond Index Fund
Investment Partners Fund
Large Cap Value Fund
MFS Value
Growth Fund
Small Cap Fund
Research International
Advantage Dow Jones Target Today
Advantage Dow Jones Target 2010
Total
2012
$
11,670,616
6,836,800
7,831,192
2,010,159
1,426,073
379,064
444,991
1,132,586
777,165
705,892
485,064
1,626,229
4,786,461
6,212,405
11,915,183
$
10,215,201
6,471,940
5,864,958
2,142,160
1,026,305
296,425
305,923
911,615
335,882
476,475
442,452
1,474,973
3,870,998
4,992,816
8,350,072
$
58,239,880
$
47,178,105
The investments are valued at fair value by the Trustee based on published prices as of December 31,
2013 and 2012. These investments are held in trust in the name of the Plan by the bank’s trust
department.
Note 11 – Voluntary Employee Contribution Tax Deferred Investment Plans
The Agency offers its employees a defined contribution tax deferred investment plan under Internal
Revenue Code (IRC) Section 403(b). This plan was established by the Agency for all of its employees
effective May 1, 1996.
Additionally, the Agency offers its employees a defined contribution tax deferred investment plan under
Internal Revenue Code (IRC) Section 457. This plan was established by the Agency effective July 1,
2006.
43
Under both plans, benefits depend solely on amounts contributed to the plan plus investment earnings.
An employee shall become a member of a plan commencing as soon as practicable after the employee
completes plan enrollment forms provided by the Agency and the custodians. Participation in the plans
is completely voluntary and all funding of the plans is by employee salary deferral. Each member may
elect to defer a fixed percentage or a fixed amount of compensation not to exceed the maximum
specified by the IRC, and for the 403 (b) plan, have the employer contribute such deferred amounts to
the custodian(s) selected by the member in accordance with the provisions of the plan, and for the 457
plan, have the employer contribute such deferred amounts to the custodian, Institutional Securities
Corporation, located in Dallas, Texas.
Note 12 - Contingencies
The Agency is a named defendant in several lawsuits. The Agency believes these lawsuits to have
meritorious defense and is defending them vigorously. The amount of liability, if any, from the claims
cannot be determined with certainty; however, management is of the opinion that the outcome of the
claims will not have a material adverse impact on the Agency’s financial position. The financial
statements do not include any adjustments for potential losses that may result from these matters.
The Agency receives significant amounts of grants from state and federal agencies and participates in
Medicare and Medicaid programs. These programs are subject to audit by the agents for granting
agencies for compliance with grant provisions. The Agency’s management believes that any liability for
reimbursement which may arise as the result of these audits will not be material to the financial position
of the Agency.
Note 13 – Sample Drugs and Patient Assistance Programs
MHMRA of Harris County assists its consumers in participating in a Patient Assistance Program (PAP)
and Sample Drug Program where the Agency, on behalf of its consumers, receives pharmaceuticals for
free and dispenses these drugs to the consumers according to policy.
The amounts of free drugs dispensed by the Agency for its consumers for the years ended August 31,
2014 and 2013 were $22,148,871 and $21,037,054, respectively. The PAP and sample drugs received
and provided to the consumers reduce the total drug expenditures/expenses that MHMRA would incur
without the PAP.
MHMRA is deemed as the payor of last resort for the medications. The Agency recognizes the benefits
of the PAP program to its consumers and has dedicated staff to assist the consumers in applying for the
PAP programs through the various pharmaceutical companies. Through internal policy, Agency
physicians are required to participate in the PAP program.
The pharmaceutical companies’ PAP and Sample Drug Program are intended to directly benefit the
consumers. Therefore, the amounts listed above are not reflected in the Agency’s Statement of Revenue,
Expenditures and Changes in Fund Balances or the Government-wide Statement of Activities.
44
Note 14 – Topaz Software Development
MHMRA of Harris County entered into an inter-local agreement with Mental Health Mental Retardation
of Tarrant County (“MHMRTC”) to jointly develop a computer software to improve and enhance the
management and delivery of mental health, intellectual and developmental disability, early childhood
intervention, and addiction services to their respective communities.
MHMRA and MHMRTC will equally share the costs and any potential revenues associated with the
development, implementation, integration, and marketing of software products and services that result
from this project.
In FY 2009, Phase I (Discovery) of this joint project was started. It dealt with documentation of the “as
is” processes, performed a “gap analysis” between the agencies and documented the same, described the
“to be” process which has been agreed upon by both agencies and documented a delivery mechanism for
each business process. At this phase, the “to be” processes were formulated and alternatives were
evaluated, and the final selection of the alternatives for the development of the software was made.
At the start of FY 2010, Phase II (Implementation) was launched to review and make decisions related
to programmatic and technical issues which impact how the software system will be configured and
used. This process continued on in FY 2014.
The Agency had deemed Phase I to be the “preliminary project stage” as described in GASB 51 Accounting and Financial Reporting for Intangible Assets, and Phase II as the “application development
stage.” Accordingly, and having met the other requisites under GASB 51, the Agency capitalized the
costs related to this project in FY 2014. At the end of the fiscal year, the application development stage
has not yet been completed.
MHMRA of Harris County is planning on rolling out the software in September of 2015.
Note 15 – Delivery System Reform Incentive Program (DSRIP)
In December of 2011, the Centers for Medicare and Medicaid Services (CMS) approved the State of
Texas’ application called Medicaid Waiver 1115 which aims to redesign healthcare delivery in Texas
consistent with CMS’ aim to improve the experience of care, to improve the health of populations, and
to reduce the cost of healthcare without compromising quality.
This Waiver called for local entities to propose Delivery System Reform Incentive Program (DSRIP)
projects categorized either for Infrastructure Development (Category 1), Program Innovation and
Redesign (Category 2), or Quality Improvement (Category 3). The entire State of Texas was divided
into regions and Community Mental Health programs were allowed 10% of each region’s DSRIP
allocation. This allocation utilized valuation of the projects rather than cost as the basis for project
reimbursement.
45
As of the end of FY2014, MHMRA of Harris County submitted and was approved a total of 27 DSRIP
projects with a total valuation of $266,194,679. These projects are in various phases of implementation
and the succeeding fiscal year will continue to see further development of these projects. In the
meantime, revenues from these projects continue to be received twice a year and are recognized as soon
as these become ascertainable, i.e. the CMS and the Health and Human Services Commission of the
State of Texas inform us of the approved valuation based on metrics submitted. Expenditures/expenses
are continuously incurred throughout the year.
In December 2013, MHMRA of Harris County purchased the 12-story building located at 9401
Southwest Freeway for $9.5M. This purchase was needed to house the expansion dictated by the DSRIP
projects, as well as that required by the new funds from the State to address the wait list. Our current
building at 7011 Southwest Freeway is planned to be sold as soon as it is fully vacated. A 7-year loan
from JPMorgan Chase in the amount of $7.64 M was initially secured to partially finance the said
purchase.
As of this writing, that building is still being built-out for use as both clinic and office spaces. A total of
$13.9M was planned to be additionally spent on this property as follows: infrastructure - $5.6M,
remodeling - $4.9M, and planning, design and furniture - $3.4M. As a result, another $6M loan has
been negotiated but not yet withdrawn from JPMorgan Chase to partially finance this build-out. The
transfer of clinics and offices from 7011 Southwest Freeway to 9401 Southwest Freeway is envisioned
to occur between March to May of 2015.
Note 16 – Prior Period Adjustment
Three of the Agency’s discretely presented component units (Villas at Bayou Park, Inc., Pear Grove,
Inc. and Acres Homes Garden, Inc.) reported adjustments to the beginning balance of net position for
the correction of an error associated with recognition of grant revenues in a previous year. The changes
resulted in an increase to the beginning balance of net position of the discretely presented component
units in the amount of $5,374,418.
46
OTHER SUPPLEMENTARY INFORMATION
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY SOURCE
AUGUST 31, 2014
Total
Governmental Funds Capital Assets
Land
Buildings
Leasehold improvements
Vehicles
$
5,434,585
19,223,245
6,789,658
13,709,764
1,629,005
6,142,885
$
52,929,142
Investment in Governmental Funds Capital Assets by Source
General Fund
$
52,929,142
Total Investment in Governmental Funds Capital Assets
$
52,929,142
Total Governmental Fund Capital Assets
47
SCHEDULE BY FUNCTION
FOR THE YEAR ENDED AUGUST 31, 2014
Function
Equipment and Leasehold
Furniture Improvements
Land
Buildings
$ 1,895,148
$ 5,901,715
$ 1,855,258
$ 5,164,085
Mental Retardation
916,080
2,895,662
1,111,807
2,084,708
174,011
1,274,669
534,677
Mental Health
Crisis Center
Administration
Total Governmental Fund
Capital Assets
-
-
Intangible
AssetsSoftware
Vehicles
$
220,527
$
Total
-
$ 15,036,733
447,510
-
7,455,767
1,375,659
-
-
3,359,016
422,172
2,619,061
746,952
-
3,788,185
2,449,346
9,151,199
2,865,744
2,466,251
214,016
6,142,885
23,289,441
$ 5,434,585
$ 19,223,245
$ 6,789,658
$ 13,709,764
$ 1,629,005
$ 6,142,885
$ 52,929,142
48
SCHEDULE OF CHANGES BY FUNCTIONS
Governmental
Fund
Capital Assets
August 31,
2013
Function
Mental Health
$
14,863,467 $
Additions
179,266 $
Retirements
Adjustments
6,000 $
-
6,100
-
7,455,767
-
3,359,016
Mental Retardation
7,442,369
19,498
3,359,016
-
-
Crisis Center
3,658,888
190,000
44,850
Administration
13,158,148
10,162,465
47,025
Total Governmental Fund
Capital Assets
$
42,481,888 $
10,551,229 $
49
Governmental
Fund
Capital Assets
August 31,
2014
103,975 $
(
$
15,036,733
15,853)
3,788,185
15,853
23,289,441
-
$
52,929,142
COMPARATIVE SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEARS ENDED AUGUST 31, 2014 AND 2013
Balance
September 1, 2013
Client Trust Fund
Assets
Liabilities
Due to clients
Additions
Liabilities
Due to clients
Balance
August 31, 2014
$
11,758
$
77,149
$
67,021 $
21,886
$
11,758
$
77,149
$
67,021 $
21,886
Balance
September 1, 2012
Client Trust Fund
Assets
Deductions
Additions
Deductions
Balance
August 31, 2013
$
15,249
$
37,576
$
41,067 $
11,758
$
15,249
$
37,576
$
41,067 $
11,758
50
STATISTICAL SECTION NOTES
This Statistical Section aims to provide information about the Agency’s economic condition. In
normally consists of information on financial trends, revenue capacity, debt capacity,
demographic and economic environment, and operations.
Information on financial trends indicates how the financial portion of the Agency, in terms of net
position and fund balances, and changes thereto, have changed over time. It will be noted from
the schedules that both of these statistics generally increase during the past five years.
Information on revenues capacity centers mainly on the principal sources of revenues as the
Agency is not a taxing authority. Principally, it generates its revenues from state and federal
sources.
Demographic and economic information aims at describing the Agency’s socio-economic
environment. Included in this report therefore are: data on population and unemployment and
principal employers in that catchment area. The Agency’s catchment area has seen a steady
increase in population. This is expected to continue for the next few years. Citizens of other
states migrate to Texas in order to avail of better opportunities.
Operating information consists of number of employees by function/program, client and service
related data, drilled-down expenditures for mental health and mental retardation, and finally
capital assets utilized by the programs.
NET POSITION BY COMPONENT (UNAUDITED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2005
Restricted for:
Texas Medication Algorithm Project
Texas Implementation of Medication
Algorithm Project
Harris County Youth and Family Mental
Health Services Collaborative
Unrestricted
Total governmental activities net position
$
9,866,118
2006
$
26,733
$
2007
13,545,214
$
2008
13,038,662
$
13,839,801
-
-
-
1,399,484
268,665
-
-
442,420
27,599,648
28,023,628
39,334,403
51
$
41,837,507
33,828,411
$
46,867,073
35,623,166
$
49,462,967
2009
$
2010
12,106,397
$
14,192,234
$
2012
16,526,852
$
2013
18,340,667
$
2014
19,361,119
$
21,640,340
-
-
-
-
-
-
-
-
-
-
-
-
40,729,973
$
2011
52,836,370
42,140,254
$
56,332,488
43,728,371
$
60,255,223
41,232,357
$
52
59,573,024
2,451,869
40,000,276
$
61,813,264
16,760,603
40,562,756
$
78,963,699
CHANGES IN NET POSITION (UNAUDITED)
2005
Expenses
Adult Mental Health
Mental Retardation
Child and Adolescents
Crisis Center
Community Hospital
$
46,784,180
26,013,270
11,390,426
14,015,296
19,806,281
574,554
expenses
Program Revenues
Adult Mental Health
Mental Retardation
Crisis Center
Community Hospital
program revenues
(
General Revenues and Other
Changes in Net Position
Payment from Harris County
Grants and contributions not
restricted to specific programs
Investment earnings
Other income
Gain on disposal of assets
Transfers
Total
Change in Net Position
$
2006
$
46,533,680
28,887,707
12,681,152
17,578,366
19,806,281
542,928
2007
$
49,573,198
31,535,408
12,980,279
19,067,856
19,806,273
414,825
2008
$
48,688,936
33,116,707
16,316,746
20,028,746
23,306,273
380,687
118,584,007
126,030,114
133,377,839
141,838,095
42,535,642
26,762,920
11,078,023
2,919,807
19,806,281
43,227,423
26,100,468
13,805,504
1,570,963
19,806,281
49,391,969
29,209,300
12,383,783
4,104,502
19,806,273
51,371,498
30,004,539
13,502,038
6,084,693
23,306,273
103,102,673
104,510,639
114,895,827
124,269,041
15,481,334)
(
21,519,475)
(
18,482,012)
(
17,569,054)
22,094,322
22,271,825
20,502,849
17,736,332
581,385
727,061
77,443
197,633
45,017
23,722,861
1,548,416
176,367
25,971
24,022,579
1,935,931
528,721
544,077
23,511,578
1,228,325
362,001
26,370
19,353,028
8,241,527
$
2,503,104
53
$
5,029,566
$
1,783,974
N
2009
$
46,597,293
37,666,929
15,939,526
27,250,245
23,274,922
326,553
(
$
2010
$
51,522,383
42,441,157
16,106,665
31,573,042
27,450,626
287,043
2011
$
48,335,141
42,563,470
16,955,321
30,217,489
27,227,020
244,779
2012
$
51,359,838
39,042,871
16,891,756
29,822,983
27,060,660
200,251
2013
$
52,421,224
39,367,361
17,564,259
30,768,150
32,038,969
152,415
2014
$
68,146,563
41,147,139
18,916,913
35,956,233
31,481,431
179,191
151,055,468
169,380,916
165,543,220
164,378,359
172,312,378
195,827,470
51,123,437
33,356,775
13,983,388
11,203,837
23,274,922
55,264,007
38,000,713
14,657,202
17,617,875
27,450,626
54,026,517
39,980,786
15,680,291
14,251,271
27,227,020
51,391,116
35,821,059
16,699,140
15,019,426
23,529,696
54,595,205
35,644,524
15,991,984
17,947,672
28,493,696
79,297,874
37,584,146
16,502,431
30,519,423
28,406,319
132,942,359
152,990,423
151,165,885
142,460,437
152,673,081
192,310,193
18,113,109)
(
16,390,493)
(
14,377,335)
(
21,917,922)
20,402,681
18,814,978
17,648,131
18,321,679
686,713
320,117
2,459,743
73,818
23,943,072
49,872
176,940
821,179
23,642
19,886,611
62,743
216,198
360,534
12,464
18,300,070
2,049,343
386,127
452,334
26,240
21,235,723
5,829,963
$
3,496,118
$
3,922,735
$(
54
682,199)
(
(
$
19,639,297)
(
3,517,277)
18,510,676
18,640,633
2,039,362
17,127)
1,327,106
19,520
21,879,537
1,992,355
308,905
273,610
24,478
21,239,981
2,240,240
$
17,722,704
MENTAL HEALTH AND RETARDATION
FUND BALANCES
GOVERNMENTAL FUNDS (UNAUDITED)
2005
General fund
Reserved for:
Inventories
Prepaid
Encumbrances
Budget provision
Texas Medication Algorithm Project
Texas Implementation of Medication
Algorithm Project
Harris County Youth and Family Mental
Health Services Collaborative
Unreserved:
Designated funds:
Capital asset replacement
Cash flow requirements
Self insurance
Debt repayment
Compensated Absences
Others
General fund- undesignated
$
468,269
654,066
26,733
$
230,625
382,369
-
2007
$
199,771
301,291
-
2008
$
272,749
259,879
-
675,234
268,665
-
-
442,420
-
-
-
1,544,172
1,000,000
480,000
22,953,141
Nonspendable:
Inventories
Prepaid items
Deposits
Committed:
Assigned:
Self insurance
Debt repayment
Other purposes
Unassigned:
Total general fund
2006
55
4,724,172
1,500,000
2,524,470
25,303,465
4,724,172
2,000,000
1,599,190
26,099,337
-
-
-
-
-
-
-
-
-
-
-
-
$ 28,244,035
* The Agency implemented GASB 54 in FY 2009
2,009,172
1,000,000
735,774
24,833,976
$ 29,460,581
$ 34,553,169
$ 34,955,327
2009
$
2010
-
$
-
$
2012
-
$
2013
-
$
2014
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
198,810
200,023
-
182,569
333,053
-
163,914
271,022
-
138,908
315,871
-
147,974
306,350
101,852
195,217
774,325
101,640
-
-
-
-
2,451,869
16,760,603
5,800,000
2,000,000
2,169,977
3,435,430
414,460
26,328,057
5,800,000
2,000,000
8,369,817
5,247,281
404,706
20,756,976
5,800,000
2,000,000
5,269,922
2,720,129
743,037
24,370,717
$
2011
41,302,638
5,800,000
2,000,000
4,560,702
3,123,753
748,029
26,364,127
$
43,112,233
5,800,000
2,000,000
3,809,183
3,219,676
405,876
29,123,629
$
5,800,000
2,000,000
3,012,954
3,342,268
409,768
27,397,775
44,793,300
$
56
42,417,544
$
43,155,969
$
60,410,565
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS (UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2005
Revenues
Local
State
Federal
$
48,841,258
66,089,752
10,972,641
2006
$
53,649,455
64,255,040
11,314,939
2007
$
52,180,624
71,348,608
14,275,329
2008
$
53,333,683
76,936,456
13,270,045
Total Revenues
125,903,651
129,219,434
137,804,561
143,540,184
Expenditures
Salaries
Employee benefits
Professional and consultant services
Training and travel
Debt service
Capital outlay
Non-capitalized equipment
Pharmaceutical expense
Other operating expense
Total expenditures
53,087,788
9,727,365
26,306,554
1,174,499
2,453,789
1,512,194
11,317,525
13,511,937
119,091,651
60,762,975
13,234,417
7,030,810
1,700,441
3,878,514
1,527,533
641,950
8,099,015
31,190,315
128,065,970
66,637,986
14,935,820
7,460,872
1,767,429
1,132,398
1,050,503
585,059
6,999,820
33,180,776
133,750,663
71,521,224
15,468,903
7,207,549
2,002,900
1,401,158
462,607
767,841
7,261,937
36,212,343
142,306,462
6,812,000
1,153,464
4,053,898
1,233,722
82,718
349,825
432,543
37,111
25,971
63,082
259,435
779,255
1,038,690
167,227
26,370
193,597
Excess of revenues over/under expenditures
Other financing sources (uses)
Capital leases
Debt issuance
Proceeds from sale of assets
Total other financing sources (uses)
Net change in fund balances
$
7,244,543
Ratio of total debt service expenditures to
total noncapital expenditures
2.09%
57
$
1,216,546
3.07%
$
5,092,588
0.85%
$
1,427,319
0.99%
2009
$
$
57,888,002 $
83,161,961
15,740,531
2010
59,426,076 $
95,527,987
17,895,020
2011
2012
62,937,932 $
94,597,104
11,915,483
2013
64,363,295 $
89,622,892
9,681,399
2014
67,052,301 $ 66,236,197
94,319,225
104,833,857
13,159,316
42,454,903
156,790,494
172,849,083
169,450,519
163,667,586
174,530,842
213,524,957
78,101,016
17,663,317
7,714,718
2,493,567
996,868
229,360
2,388,284
3,733,380
37,031,315
150,351,825
87,604,734
21,182,041
10,233,262
2,635,039
996,263
2,691,961
1,517,604
1,732,486
42,469,740
171,063,130
88,266,962
21,811,119
9,226,159
2,759,524
996,297
2,857,896
418,692
1,683,525
39,761,742
167,781,916
86,527,045
22,239,368
7,384,814
2,979,031
996,480
2,375,254
1,037,372
1,471,468
41,058,750
166,069,582
89,048,998
22,691,270
7,713,373
2,927,971
995,392
1,560,933
1,152,194
1,133,818
46,015,718
173,239,667
101,194,770
25,433,141
10,351,530
2,969,507
1,619,351
10,551,229
1,805,330
1,274,994
48,734,987
203,934,839
6,438,669
1,785,953
1,668,603
1,291,175
9,590,118
340,041
340,041
23,642
23,642
12,464
12,464
26,240
26,240
19,520
19,520
7,640,000
24,478
7,664,478
1,809,595 $
1,681,067 $(
2,375,756) $
1,310,695 $
17,254,596
6,778,710 $
0.66%
0.59%
0.60%
(
2,401,996)
0.61%
58
0.58%
0.84%
PRINCIPAL SOURCES OF REVENUE (UNAUDITED)
2005
Local
County government
Medicaid/Medicare
Other
Total local revenue
State
Department of State Health ServicesGeneral Revenue
Department of Aging and Disability ServicesGeneral Revenue
Texas Council on Offenders with
Mental Impairments
Other state agencies
Total state revenues
Federal
Other federal revenues
Total federal revenues
Total revenues
$
26,331,144
10,338,856
12,171,258
2006
$
26,414,128
14,536,914
12,698,413
2007
$
26,306,400
12,460,818
13,413,406
2008
$
26,851,273
12,496,212
13,986,198
48,841,258
53,649,455
52,180,624
53,333,683
49,605,680
48,064,347
53,965,505
58,835,494
10,455,329
2,426,552
11,207,304
2,091,604
11,942,518
2,254,673
11,898,169
2,150,183
2,469,875
1,132,316
66,089,752
2,406,650
485,135
64,255,040
2,739,912
446,000
71,348,608
3,385,933
666,677
76,936,456
3,083,498
3,615,656
4,273,487
3,049,016
3,678,577
4,587,346
3,081,806
4,742,899
6,450,624
3,081,806
5,208,576
4,979,663
10,972,641
11,314,939
14,275,329
13,270,045
$ 125,903,651
$ 129,219,434
$ 137,804,561
$ 143,540,184
59
2009
$
30,366,731
12,503,786
15,017,485
2010
$
29,728,217
15,323,885
14,373,974
2011
$
2012
28,681,523
21,637,710
12,618,699
$
28,132,939
21,780,636
14,449,720
2013
$
29,273,302
24,152,125
13,626,874
2014
$
30,412,676
22,121,662
13,701,859
57,888,002
59,426,076
62,937,932
64,363,295
67,052,301
66,236,197
63,574,567
74,076,314
74,500,636
75,919,706
80,410,871
90,691,945
12,150,341
2,375,698
14,979,825
1,906,946
13,654,580
2,115,314
8,803,727
1,073,474
8,799,578
1,255,837
8,790,754
1,219,655
3,598,828
1,462,527
83,161,961
3,394,902
1,170,000
95,527,987
3,354,574
972,000
94,597,104
2,787,591
1,038,394
89,622,892
2,773,939
1,079,000
94,319,225
2,866,406
1,265,097
104,833,857
3,081,806
6,359,357
6,299,368
3,081,806
5,920,373
8,892,841
3,081,806
4,607,965
4,225,712
3,081,806
2,746,242
3,853,351
3,081,806
2,131,105
2,837,339
7,946,405
3,081,806
2,068,766
30,532,366
6,771,965
15,740,531
17,895,020
11,915,483
9,681,399
15,996,655
42,454,903
$ 156,790,494
$ 172,849,083
$ 169,450,519
$ 163,667,586
$ 177,368,181
$ 213,524,957
60
SUMMARY SCHEDULE OF INDIRECT COSTS (UNAUDITED)
Non Allowable
Total Costs
Salaries
$
Employee benefits
Capital outlay
Pharmaceutical expense
-
$
Direct Costs
101,194,771 $
Indirect Costs
89,141,152 $
12,053,619
-
-
25,433,141
24,001,605
1,431,536
(
1,440,160)
-
179,191
151,614
27,577
10,551,229
(
10,551,229)
-
-
-
-
63,861,353
$
$
Costs
1,619,351
-
Other operating expenses
Depreciation
-
1,274,994
Depreciation
Total expenses
101,194,771 $
25,433,141
Debt service
Total Adjusted
Costs
203,934,839 $(
-
2,072,168
11,991,389) $
2,072,168 $
1,274,994
1,274,994
2,072,168
1,007,999
1,064,169
63,861,353
61,801,562
2,059,791
194,015,618 $
-
177,378,926 $
16,636,692
Indirect costs
$
16,636,692
Direct costs
$
177,378,926
Indirect cost rate
9.38%
61
DETAIL SCHEDULE OF DIRECT AND INDIRECT COSTS (UNAUDITED)
Adjustments/
Exclusions
Total Costs
Expenditures:
Personal costs:
Salaries and wages
Fringe benefits
Client Living Cost
Consultation and professional fees
Travel - board and staff
Consumable supplies:
Drugs
Food
Other
Furniture and equipment:
Capital expenditures
Rental
Repair and maintenance
Building:
Capital expenditures from general operation
Rental
Vehicles:
Capital expenditures
Rental
Contract with service agencies
Other:
Utilities, postage and telephone
Client transportation
Audit and legal fees
Insurance
Meetings
Transfer and storage
Dues and subscriptions
Payment on note principal
Interest charges
Laboratory expenses
Security expense
Miscellaneous
Total expenditures
$ 101,194,771
25,433,141
6,297
1,760,042
2,969,507
$
(
(
Indirect Costs
$
4,275)
6,221)
12,053,619
1,431,536
504,031
111,656
Direct Costs
$
89,141,152
24,001,605
6,297
1,251,736
2,851,630
1,274,994
277,735
1,138,050
(
(
66,357)
196)
-
278
207,714
1,208,637
277,261
930,336
719,463
219,543
1,127,612
(
719,463)
-
43,224
1,965,544)
176,319
3,093,156
9,602,283
589,734
3,376,228
(
9,602,283)
5,421)
12,752
973,892
576,982
2,396,915
229,483
7,140
290,180
44,105,469
(
229,483)
-
7,140
68,566
127,919
221,614
43,977,550
169,504)
1,440,160)
251,974
152,483
63
205,276
603,780
252
18,475
47,452
27,577
48
97,917
842,417
2,000,988
41,460
5,155
99,526
25
71,440
35,721
151,614
241,311
881,807
2,730,690
15,572,523
$ 176,370,927
(
2,153,471
41,523
210,431
703,306
277
89,915
252,677
1,440,160
179,191
241,359
979,724
3,321,133
(
(
(
$ 203,934,839
$( 11,991,389) $
Equipment and vehicle depreciation
Buildings and improvement depreciation
$
$
Total
$ 206,007,007
494,501
1,577,667
Indirect costs
Direct costs
-
$
196,357
867,812
$( 11,991,389) $
16,636,692
$ 16,636,692
$ 177,381,217
62
$
298,144
709,855
$ 177,378,926
9.38%
LOCAL SERVICE AREA POPULATION (UNAUDITED)
Population of local service areas for which the following centers are the local Mental
Health and Mental Retardation Authority. (Source: Texas Department of State Health
Services, Projected FY 2014):
Center
ACCESS
Alamo Local Authority
Andrews Center
Austin-Travis County
Betty Hardwick (Abilene)
Bluebonnet Trails
Border Region
Brazos Valley
Burke Center
Camino Real
Center for Health Care Services
Center for Life Resources
Central Counties
Central Plains
Costal Plains Center
Community Healthcore
Concho Valley
Dallas Metro Care Services
Denton County
El Paso
Gulf Bend
Gulf Coast Center
Harris County
Heart of Texas
Helen Farabee Center
Hill Country
Lakes Regional Center
LifePath Systems
Lubbock
NorthStar
Nueces County
Pecan Valley
Permian Basin
Spindletop
Tarrant County
Texana
Texas Panhandle
Texoma
Tri-County
Tropical Texas
West Texas
Mental Health
Population
113,257
415,629
1,119,544
183,470
889,650
360,255
342,773
394,039
220,014
1,849,753
101,266
479,477
95,940
229,256
467,357
130,144
765,488
858,953
181,312
658,110
4,395,783
361,531
313,705
645,141
165,097
331,833
3,912,464
353,471
430,789
334,102
439,532
1,931,335
878,420
413,462
201,048
683,332
1,325,880
221,646
Mental Retardation
Population
113,257
1,849,753
415,629
1,119,544
183,470
889,650
360,255
342,773
394,039
220,014
101,266
479,477
95,940
229,256
467,357
130,144
2,469,643
765,488
858,953
181,312
658,110
4,395,783
361,531
313,705
645,141
691,821
916,097
331,833
353,471
430,789
334,102
439,532
1,931,335
878,420
413,462
201,048
683,332
1,325,880
221,646
27,194,258
27,194,258
Total
63
DEMOGRAPHIC STATISTICS (UNAUDITED)
LAST TEN CALENDAR YEARS
Calendar
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(A)
(B)
(C)
(D)
Population
(A)
3,644,285
3,693,050
3,886,207
3,935,855
3,984,349
4,070,989
4,092,459
4,187,574
4,253,700
4,336,853
Unemployment
Rate (B)
5.9% $
5.4%
4.0%
4.2%
5.5%
8.1%
8.3%
7.2%
6.0%
5.5%
Source: Bureau of the Census
Source: Texas Workforce Commission
Source: Bureau of Economic Analysis
Unavailable
64
Total Personal
Income (C)
142,229,854,000
156,920,733,000
178,160,838,000
194,177,877,000
190,226,395,000
196,779,227,000
183,899,347,000
204,593,445,000
224,617,980,000
(D)
$
Per Capita
Personal
Income
39,028
42,491
45,844
49,336
47,743
48,337
44,936
48,857
52,805
(D)
RATIO OF OUTSTANDING DEBT (UNAUDITED)
Fiscal
Year
Bonds
Payable
Notes
Payable
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 2,665,000
-
$ 7,729,929
7,167,231
6,571,016
5,940,236
5,269,921
4,560,701
3,809,183
3,012,954
2,169,977
8,369,816
Note:
(A)
Capital
Leases
$
155,166
84,388
222,465
-
Total
Debt
$ 10,550,095
7,251,619
6,793,481
5,940,236
5,269,921
4,560,701
3,809,183
3,012,954
2,169,977
8,369,816
Personal
Income
$
146,158,087,000
160,710,955,000
177,998,800,000
194,177,877,000
190,226,395,000
196,779,227,000
183,899,347,000
204,593,445,000
224,617,980,000
(A)
Percentage
of Personal
Income
Debt per
Capita
0.0072%
0.0045%
0.0038%
0.0031%
0.0028%
0.0023%
0.0021%
0.0015%
0.0010%
(A)
Details regarding the Agency's outstanding debt can be found in the notes to the financial statements.
See Demographic Statistics schedule for personal income and population data. These ratios are calculated
using the personal income and population for the prior year calendar year.
Unavailable
65
$2.89
1.96
1.75
1.51
1.32
1.12
0.93
0.72
0.51
1.93
PRINCIPAL EMPLOYERS IN THE CATCHMENT AREA (UNAUDITED)
CURRENT YEAR AND NINE YEARS AGO
2013
Employer
Employees
Rank
2004
Percentage
of Total
County
Employment Employees
National Oilwell Varco Inc.
14,581
1
Exxon Mobil
13,200
2
Shell Oil Company
12,500
3
Cameron International Corp
11,000
4
Halliburton
8,600
5
Schlumberger Ltd.
8,400
6
Baker Heights
8,000
7
JP Morgan Chase
7,500
8
Chervon Companies
7,000
9
BP America Inc.
7,000
9
Diamond Offshore
5,300
10
Continental Airlines
Hewlett-Packard Co. (include acquisition of Compaq Computer in 2001)
SBC Communiations/AT&T
Reliant Energy (Houston Industries)
Lyondell Chemical Company
BP Amoco
103,081
0.51%
0.46%
0.44%
0.39%
0.30%
0.29%
0.28%
0.26%
0.25%
0.25%
0.19%
Rank
Percentage
of Total
County
Employment
5,800
7,920
9
6
0.25%
0.34%
14,000
1
0.59%
5,500
10
0.23%
13,000
9,000
6,900
9,500
7,435
8,000
2
4
8
3
7
5
0.55%
0.38%
0.29%
0.40%
0.32%
0.34%
87,055
*Based on calendar year.
Source: Houston Business Journal, Business First Survey/Greater Houston Partnership/HBJ
Note: Total County employment for 2012 was approximately 2,759,000 (based on prior year employment figures) and 2003
was 2,323,951.
66
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM (UNAUDITED)
Function/Program
Adult Mental Health
Mental Retardation
Crisis Center
Administration
Total
2005
2006
2007
2008
453.99
377.67
111.14
203.20
169.75
554.22
417.83
154.61
198.74
174.35
515.05
422.90
179.95
201.90
185.75
474.61
441.08
189.87
240.93
194.36
1,315.75
1,499.75
1,505.55
1,540.85
67
2009
2010
2011
2012
2013
2014
534.16
471.16
192.47
277.05
202.86
482.22
520.33
248.54
283.50
146.17
568.80
471.51
190.70
267.50
142.15
579.00
458.00
200.00
284.00
148.00
591.32
430.38
193.70
269.40
150.05
750.00
449.93
226.20
301.65
173.80
1,677.70
1,680.76
1,640.66
1,669.00
1,634.85
1,901.78
68
OPERATING INDICATORS BY FUNCTION/PROGRAM (UNAUDITED)
2005
2006
2007
2008
Admissions:
Mental Health
Mental Retardation
16,709
5,026
17,560
5,308
14,735
5,956
21,696
6,626
Total admissions
21,735
22,868
20,691
28,322
Total clients served (unduplicated):
Mental Health
Mental Retardation
29,212
8,579
32,244
9,341
34,023
9,870
28,233
11,973
Total clients served
37,791
41,585
43,893
40,206
69
2009
2010
2011
2012
2013
2014
13,773
9,777
18,114
14,116
22,758
9,551
11,305
2,241
10,295
1,951
12,755
2,329
23,550
32,230
32,309
13,546
12,246
15,084
30,672
14,348
30,290
17,836
36,112
16,631
26,384
17,185
30,944
15,019
26,780
17,715
45,020
48,126
52,743
43,569
45,963
44,495
70
GENERAL FUND REVENUE BY SOURCE OF FUNDS (UNAUDITED)
LAST TEN FISCAL YEAR
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Local Funds
$
48,841,258
53,649,455
52,180,624
53,333,683
57,888,002
59,426,073
62,937,932
64,363,140
67,052,301
66,236,197
Federal
Funds
State Funds
$
66,089,752
64,255,040
71,348,608
76,936,456
83,161,961
95,527,986
94,597,104
89,622,891
94,319,225
104,833,857
71
$
10,972,641
11,314,939
14,275,329
13,270,045
15,740,531
17,895,019
11,915,483
9,681,399
13,159,316
42,454,903
Total
$
125,903,651
129,219,434
137,804,561
143,540,184
156,790,494
172,849,078
169,450,519
163,667,430
174,530,842
213,524,957
GENERAL FUND EXPENDITURES BY CATEGORY (UNAUDITED)
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Mental
Retardation
Mental Health
$
82,582,767
88,575,211
92,448,978
100,027,256
100,759,324
114,793,836
111,906,905
113,918,759
120,985,289
141,307,371
$
23,717,899
25,802,648
27,600,507
29,888,424
32,486,993
37,292,849
37,819,392
34,616,488
34,821,433
36,663,301
72
Administration
$
12,790,985
13,688,111
13,701,178
12,390,782
17,105,508
18,976,445
18,055,619
17,534,335
17,432,945
25,964,167
Total
$
119,091,651
128,065,970
133,750,663
142,306,462
150,351,825
171,063,130
167,781,916
166,069,582
173,239,667
203,934,839
CAPITAL ASSETS BY GOVERNMENTAL ACTIVITY (UNAUDITED)
2005
2006
2007
2008
$ 1,874,313
10,684,764
2,058,098
446,350
15,063,525
$ 1,874,313
10,678,064
2,006,922
397,904
14,957,203
$ 1,774,221
10,563,939
1,990,410
272,914
14,601,484
$ 1,774,221
10,563,939
1,996,762
152,654
14,487,576
Mental Retardation
Land
Equipment and furniture
Vehicles
Total capital assets for Mental Retardation
870,772
4,754,955
1,497,674
510,083
7,633,484
870,772
4,781,827
1,460,434
468,225
7,581,258
870,772
4,781,827
1,448,419
461,996
7,563,014
870,772
4,781,827
1,453,042
469,777
7,575,418
Land
Total capital assets for Child and Adolescent
138,700
2,479,474
727,520
3,345,694
138,700
2,496,099
709,430
3,344,229
138,700
2,496,099
703,594
3,338,393
138,700
2,496,099
705,839
3,340,638
Crisis Center
Vehicles
Total capital assets for Crisis Center
2,442,010
539,108
235,001
3,216,119
2,439,691
525,703
186,867
3,152,261
2,439,691
521,378
258,863
3,219,932
2,439,691
548,908
395,747
3,384,346
Administration
Land
Vehicles
Intangible assets- Software
Total capital assets for Administration
531,068
4,387,139
2,053,972
38,172
7,010,351
531,068
4,390,552
2,002,900
54,395
6,978,915
531,068
4,390,552
1,986,422
54,395
6,962,437
531,068
4,390,552
1,992,763
175,819
7,090,202
$ 36,269,173
$ 36,013,866
$ 35,685,260
$ 35,878,180
Adult Mental Health
Land
Vehicles
Total capital assets for Adult Mental Health
Total capital assets
73
2009
2010
2011
2012
2013
2014
$ 1,774,221
10,563,939
1,995,971
152,654
14,486,785
$ 1,895,148
11,047,650
2,171,348
129,551
15,243,697
$ 1,895,148
11,047,650
2,160,381
129,551
15,232,730
$ 1,895,148
11,060,635
2,169,897
129,551
15,255,231
$ 1,895,148
11,060,635
1,687,157
220,527
14,863,467
$ 1,895,148
11,065,800
1,855,258
220,527
15,036,733
870,772
4,781,827
1,452,466
469,777
7,574,842
916,080
4,963,058
1,453,030
394,576
7,726,744
916,080
4,963,058
1,462,270
394,576
7,735,984
916,080
4,980,370
1,469,196
374,226
7,739,872
916,080
4,980,370
1,117,907
428,012
7,442,369
916,080
4,980,370
1,111,807
447,510
7,455,767
138,700
2,496,099
705,559
3,340,358
174,011
2,637,343
705,833
3,517,187
174,011
2,637,343
701,957
3,513,311
174,011
2,650,328
705,321
3,529,660
174,011
2,650,328
534,677
3,359,016
174,011
2,650,328
534,677
3,359,016
2,439,691
573,344
468,553
3,481,588
2,439,691
567,247
436,938
3,443,876
2,619,061
564,375
436,938
3,620,374
2,619,061
566,869
452,679
3,638,609
2,619,061
428,072
611,775
3,658,908
2,619,061
422,172
746,952
3,788,185
436,250
4,033,428
1,991,973
171,925
6,633,576
436,250
4,033,428
1,992,746
155,702
1,365,734
7,983,860
436,250
4,033,428
2,861,455
173,516
3,113,739
10,618,388
436,250
4,033,428
2,984,690
173,516
5,102,008
12,729,892
436,250
4,033,428
2,563,682
196,183
5,928,585
13,158,128
2,449,346
11,617,450
2,865,744
214,016
6,142,885
23,289,441
$ 35,517,149
$ 37,915,364
$ 40,720,787
$ 42,893,264
$ 42,481,888
$ 52,929,142
74
RECONCILIATION OF TOTAL REVENUES TO FOURTH QUARTER FINANCIAL REPORT (UNAUDITED)
Per Audited
Per Agency
Financial
CARE Report
Additions
Deletions
Statements
Local Revenues
Harris County
$
Patient Fees and Private Insurance
30,317,179
$
2,248,637
Medicare
940,977
20,836,219
7,384,549
-
Administrative claiming
5,263,911
791,913
308,905
Miscellaneous
(b)
344,466
ICF/MR, HCS, and Texas Home Living
Investment earnings
(a) $
-
-
Medicaid
114,098
(a)
(a)
(b)
993,697
940,977
21,180,685
-
7,384,549
(a)
22,247,942 (a),(b),(c)
2,744,295
30,412,676
-
738
552,850 (a),(b)
$
-
3,263,834 (a), (b),(c )
-
23,918,548
18,601
1,254,940
26,786,055
2,791,990
308,167
2,223,456
Total Local Sources
90,277,948
66,236,197
State General Revenue
99,762,452
-
279,753
(a)
99,482,699
Department of Assistive and Rehabilitive Services Rehab
3,288,421
-
2,068,766
(b)
1,219,655
819,099
-
-
819,099
Texas Council on Offenders with Mental Impairments
2,866,406
-
-
2,866,406
445,998
-
-
7,419,924
-
2,068,776
5,351,158
107,182,376
-
2,348,519
104,833,857
3,081,806
-
-
631,929
-
-
631,929
1,520,248
-
-
1,520,248
Other State Sources:
Texas Department of Criminal Justice
Total Other State Sources
Total State Revenue
445,998
Federal Sources:
Social Services Block Grant - Title XX
3,081,806
MH Block PATH
-
913,462
(a)
-
913,462
-
2,404,955
(b)
-
2,404,955
Delivery Service Reform Incentive
State Grants to Promote Health Information Technology
30,532,366
-
-
30,532,366
42,500
-
-
42,500
2,915,709
Administrative Claiming
-
2,915,709
(b)
-
LEND
-
5,280
(b)
-
5,280
SAMHSA - Partners at Independence Heights
32,989
-
-
32,989
Transitional Housing Program - Safe Havens
373,659
-
-
373,659
-
42,454,903
Total Federal Sources
Total Revenue
36,215,497
$
233,675,821
(a) Audit adjustment
(b) Revenue reclassification
(c) Rounding adjustment
75
6,239,406
$
8,983,701
$
29,134,574
$ 213,524,957
RECONCILIATION OF TOTAL EXPENDITURES TO FOURTH QUARTER FINANCIAL REPORT
(UNAUDITED)
Expenditures
Per Agency
CARE
Object of Expenditure
Salaries
Employee Benefits
Professional and Consultant Services
Training and Travel
Debt Service
Capital Outlay
Non-Capitalized Equipment
Pharmaceutical Expense (medication
and script process)
Pharmaceutical Expense (PAP only)
Other Operating Expense
$
Total Expenditures
$
100,541,235
27,038,862
10,449,334
2,963,704
1,619,351
10,470,586
1,835,967
Additions
$
Deletions
(a)
$
(a)
(a)
(a)
(b)
(a)
(a),(b)
1,212,626
21,648,069
48,831,926
226,611,660
705,878
219,109
5,803
214,301
5,801
62,368
500,802 (b),(c)
295,964 (a),(b)
$
(a) Audit adjustment
(b) Expenditure reclassification
(c) Rounding adjustment
76
2,010,026
Per Audited
Financial
Statements
52,343 (b) $
1,824,830 (b)
97,804 (a),(b)
133,658 (b)
36,438 (b)
22,148,871
(a)
392,903 (a),(b)
$
24,686,847
101,194,770
25,433,141
10,351,530
2,969,507
1,619,351
10,551,229
1,805,330
1,274,994
48,734,987
$
203,934,839
SUMMARY SCHEDULE OF MENTAL HEALTH ADULT, MENTAL HEALTH CHILDREN,
AND MENTAL RETARDATION EXPENDITURES BY SERVICE CATEGORY AND
SOURCE OF FUNDS (UNAUDITED)
Service Categories
(by Funding Source)
Mental Health
Adult
General Revenue - Mental Health
General Revenue - Mental Retardation
General Revenue - Permanency Planning
New Generation Medications
Community Hospitals
HCS
ICF-MR
Texas Home Living Waiver
PATH
Title XX Social Services Block Grant
Medicaid
Medicaid Administrative Claiming
HUD - Supportive Housing - Safe Haven
Delivery System Reform Incentive Payments
Leadership Education in Neurodevelopmental and Related
Disorders
DARS- Autism
Texas Council on Offenders with Mental Impairments
Required Local Match
Additional Local Funds
$
Total Expended Sources
$
51,204,898
6,826,167
23,529,696
913,462
631,929
2,265,141
239,379
6,064,643
4,463,286
373,659
16,084,809
42,500
Mental Health
Children
$
32,989
445,998
2,132,902
6,620,217
19,084,858
77
140,956,533
8,713,581
417,603
816,665
1,280,869
2,979,377
466,790
426,015
-
Mental
Retardation
$
5,280
819,099
3,288,421
1,059,179
4,132,416
733,504
3,982,294
$
19,816,698
8,681,794
108,960
3,513,628
1,664,844
2,206,077
12,136,665
1,113,812
4,431,433
-
$
43,161,608
Approved
Budget
Total
$
59,918,479
8,681,794
108,960
7,243,770
23,529,696
3,513,628
1,664,844
2,206,077
913,462
631,929
3,081,806
1,520,248
21,180,685
6,043,888
373,659
20,942,257
42,500
$
5,280
32,989
445,998
819,099
3,288,421
2,866,406
7,679,396
27,199,568
$
203,934,839
60,978,535
8,681,794
108,960
7,243,770
23,529,696
3,979,812
1,683,224
2,173,255
948,878
409,072
3,081,806
1,520,248
22,389,662
2,569,302
335,867
27,178,388
-
Variance
$
(
(
(
(
(
(
72,000
446,000
927,541
3,643,519
2,891,169
7,563,567
56,401,530
$
238,757,595
(
$
78
1,060,056
466,184
18,380
32,822)
35,416
222,857)
1,208,977
3,474,586)
37,792)
6,236,131
42,500)
5,280)
39,011
2
108,442
355,098
24,763
115,829)
29,201,962
34,822,756
SCHEDULE OF REVENUES AND EXPENDITURES BY SOURCE OF FUNDS
GENERAL FUND (UNAUDITED)
Total Mental Health
Adult Expenditures
Total Revenue
Object of Expense:
Salaries
Employee Benefits
Professional and Consultant Fees
Training and Travel
Debt Service
Capital Outlay
Non-capitalized Equipment
Pharmaceutical Expense (medication and script process)
Other Operating Expense
Total Expenditures
Method of Finance:
Community Hospitals
HCS
ICF-MR
PATH
Title XX Social Services Block Grant
TANF to Title XX
Medicaid
Medicaid Administration Claiming
HUD- Support Housing - Safe Haven
Delivery System Reform Incentive
LEND
DARS - Autism
Texas Council of Offenders with Mental Impairments
Texas Expended Sources
79
$
101,194,767
25,433,143
10,351,529
2,966,507
1,619,351
10,551,229
1,912,921
1,274,993
48,630,399
$
64,550,719
15,444,408
4,881,714
1,627,489
1,119,270
7,389,059
1,373,745
1,197,221
43,372,908
$
203,934,839
$
140,956,533
$
60,420,337
8,681,794
108,960
7,243,770
23,529,696
3,513,628
1,664,844
2,206,077
913,462
631,929
3,081,806
1,520,248
21,180,685
6,043,888
373,659
30,532,366
42,500
5,280
32,989
445,998
819,099
3,288,421
2,866,406
7,679,396
27,199,577
$
51,204,898
6,826,167
23,529,696
913,462
631,929
2,265,141
239,379
6,064,643
4,463,286
373,659
16,084,809
42,500
32,989
445,998
2,132,902
6,620,217
19,084,858
$
214,026,815
$
140,956,533
Total Mental Health
Children Expenditures
Total Mental Retardation
Expenditures
Total Center
Expenditures
Excess Revenues
Over Expenditures
$
13,128,953
3,348,225
88,821
349,306
157,354
991,313
157,063
21,271
1,574,392
$
23,515,095
6,640,510
5,380,994
989,712
342,727
2,170,857
382,113
56,501
3,683,099
$
101,194,767
25,433,143
10,351,529
2,966,507
1,619,351
10,551,229
1,912,921
1,274,993
48,630,399
$
-
$
19,816,698
$
43,161,608
$
203,934,839
$
-
$
8,713,581
417,603
816,665
1,280,869
2,979,377
466,790
426,015
733,504
3,982,294
$
8,681,794
108,960
3,513,628
1,664,844
2,206,077
12,136,665
1,113,812
4,431,433
5,280
819,099
3,288,421
1,059,179
4,132,416
$
59,918,479
8,681,794
108,960
7,243,770
23,529,696
3,513,628
1,664,844
2,206,077
913,462
631,929
3,081,806
1,520,248
21,180,685
6,043,888
373,659
20,942,257
42,500
5,280
32,989
445,998
819,099
3,288,421
2,866,406
7,679,396
27,199,568
$
501,858
9,590,109
9
$
19,816,698
$
43,161,608
$
203,934,839
$
10,091,976
80
SCHEDULE OF MENTAL HEALTH ADULT EXPENDITURES BY SERVICE CATEGORY AD SOURCE OF
FUNDS (UNAUDITED)
FOR YEAR ENDED AUGUST 31, 2014
Service Categories
(by Funding Source)
General Revenue- Mental Health
Community Hospitals
PATH
Title XX Social Service Block Grant
Medicaid
HUD- Supportive Housing- Safe Haven
DSRIP
Other
Medications (Pills
& Injections)
New Generation
Medications
$
208,984
-
$
-
Medicaid Type
Services (Both
Eligible and
Ineligible)
Medication
Related Services
(EKG & Labs)
$
2,063,246
-
$
17,247,854
6,617,183
409,072
2,265,141
239,379
5,492,267
3,077,173
8,775,251
Sate Grants to Promote Health Information
-
-
SAMHSA- Partners at Impendence Heights
Texas Council on Offenders with Mental
Impairments
-
22,300
4,460
401,398
29,656
-
20,459
844,886
1,041,173
1,980,600
418,793
$
238,640
$
81
887,645
-
$
3,108,879
-
$
46,924,111
Values Added
Services
$
-
Screening &
Eligibility
$
-
$
2,385,821 $
-
All Other
Outpatient
Services
4,758,660 $
913,462
71,112
373,659
1,180,789
3,352,106 $
116,057
456,879
37,914
8,559,413
222,857
385,954
702,099
5,841,196
-
-
-
-
-
-
8,920
32,989
-
60,531
-
41,656
-
4,371,535
-
2,436,397 $
1,557,166 $
-
New Crisis
Services - Crisis
Outpatient
-
8,920
69,451 $
Crisis Outpatient
New Crisis
Services - Crisis
Residential
11,702,206 $
2,248,682
-
3,276,495
3,805,848 $
7,239,451 $
82
3,533,863
19,245,382
SCHEDULE OF MENTAL HEALTH ADULT EXPENDITURES BY SERVICE CATEGORY AD SOURCE OF
FUNDS (UNAUDITED) (Continued)
FOR YEAR ENDED AUGUST 31, 2014
Service Categories
(by Funding Source)
New Crisis
Services - Crisis
Screening &
Eligibility
New Crisis
Services - Crisis
Other
$
Community Hospitals
PATH
Title XX Social Service Block Grant
Medicaid
Medicaid
Administrative
Claiming
HUDSupportive
HousingSafe
Haven
DSRIP
Sate Grants to Promote Health
Information
SAMHSA- Partners at Impendence
HeightsDepartment of Criminal
Texas
Justice
Mental Impairments
1,357,016 $
50,261
111,445
42,984
2,873,660 $
$
Community
Hospital (Inpatient
Only)
644,414 $
20,104
44,578
206,675
Other Services
Non-Priority
Population
9,279,202 $
23,529,696
-
-
Total
$
51,204,898
6,826,167
23,529,696
913,462
631,929
2,265,141
239,379
6,064,643
4,463,286
373,659
16,084,809
-
-
-
42,500
42,500
-
-
-
-
32,989
445,998
1,311,954
184,946
1,100,717 $
83
8,427,941
41,236,839 $
44,807
87,307 $
2,132,902
6,620,217
19,084,858
140,956,533
SCHEDULE OF MENTAL HEALTH CHILDREN EXPENDITURES BY SERVICE CATEGORY AND SOURCE
OF FUNDS (UNAUDITED)
Service Categories
(by Funding Source)
New Generation
Medications
Medicaid
Mental Impairments
$
$
1,570
-
Other Medications
(Pills & Injections)
$
1,570
-
Medicaid Type
Services (Both
Eligible and
Ineligible)
$
86,771
$
84
86,771
$
8,713,581
416,033
816,665
1,280,869
2,979,377
451,200
426,015
All Other
Outpatient
Services
$
15,590
-
733,504
31,670
3,403,845
15,848,914
$ 3,419,435
Crisis
Screening &
Eligibility
Crisis Outpatient
$
-
$
433,179
$
433,179
-
Other Services
Non-Priority
Population
$
1,145
$
1,145
$
-
Total
$
8,713,581
417,603
816,665
1,280,869
2,979,377
466,790
426,015
25,684
733,504
3,982,294
25,684
$ 19,816,698
85
SCHEDULE OF MENTAL RETARDATION EXPENDITURES BY SERVICE CATEGORY AND SOURCE OF
FUNDS (UNAUDITED)
Service Categories
(by Funding Source)
Assessment,
Eligibility
Determination
HCS
ICF - MR
Medicaid
LEND
DARS - Autism
$
$
Independent
Living,
Service
Community
Coordination
Support
979,689 $
82,847
406,745
1,108,036
Respite
Employment
Assistance/
Supported
Employment
3,561,407 $
$ 1,288,388 $
108,960
136,030
59,218
91,891
1,433,187
7,994,235
28,614
227,653
12,517
1,413,698
466,341
593,205
-
592,838
169,696
2,577,317 $ 12,951,801 $ 1,741,968 $ 3,484,109 $
86
62,903
2,924
65,827
Vocational
Day
Training Habilitation
$
$
18,902 $
-
511,273
313,808
90,981
420,017
8,261
280,102
-
525
-
19,427 $ 1,624,442
Specialized
Therapies
$
838,444
138,101
103,221
198,079
189,987
38,572
2,531,267
-
$
$
4,037,671
Other Services
Non-Priority
Population
ID Residential
Services
1,483,691
2,925,689
1,411,424
-
$
3,840,982
420,064
206,366
5,280
819,099
3,288,421
2,039,770
$
8,681,794
108,960
3,513,628
1,664,844
2,206,077
12,136,665
1,113,812
4,431,433
5,280
819,099
3,288,421
1,059,179
4,132,416
$
10,619,982
$
43,161,608
218,260
$
6,039,064
87
Total
SCHEDULE OF LEASES IN EFFECT (UNAUDITED)
Lessor
Address
Monthly
Amount
2014
City of Houston, Multiservice
City of Houston, Multiservice
MH Forensic, Jail-Platinum Parking
Harris County Facilities & Property
Plazer Properties, Ltd.
Spring Branch District Plaza II
Ashford Houston Investments
Gillett Properties, Ltd.
Oxley Leasing
Golden Sharpstown, Inc. (parking)
The Gathering Place
Southmore Management Group
Pasadena Cottages
NPC
Harris County Jail
4014 Market - Houston, TX
170 Height Blvd.
800 N. San Jacinto - Houston, TX
5518 Jackson St. - Houston, TX
3600 S. Gessner, Suite 351 - Houston, TX
9610 Long Point, Suite 351 - Houston, TX
1500 Dairy Ashford, Ste 448 - Houston, TX
7171 Hwy 6 N. Ste 206 - Houston, TX
2550 North Loop West - Houston, TX
7011 SW Frwy - Houston, TX
5310 South Willow - Houston, TX
817 Southmore - Pasadena, TX
2212 Wichita - Pasadena, TX
1502 Taub Loop
3540 West Dallas
$181
$372
$3,750
$50/yr
$19,197
$190
$847
$819
$900
$6,136
$650
$1,200
$1,404
$1/yr
Free
Beginning Date Termination Date
5/26/2013
5/26/2013
9/1/2013
5/1/2008
9/1/2013
11/1/2001
2/1/2014
6/1/2011
2/1/2012
1/11/2011
9/1/2013
10/1/2013
Month to month
PP for 25 Year
Month to month
-
88
9/26/2014
9/26/2014
8/31/2014
4/30/2018
8/31/2014
10/31/2014
1/31/2017
5/31/2017
8/31/2014
12/31/2014
8/31/2014
9/30/2014
Month to month
2024
Month to month
SCHEDULE OF LAND, BUILDINGS AND EQUIPMENT (UNAUDITED)
Assets
September 1,
2013
Land
$
3,421,489
Additions
$
2,013,096
25,343,822
7,589,187
6,331,495
Vehicles
Intangible Assets- Software
$
August 31,
2014
Retirements
$
-
$
5,434,585
-
32,933,009
505,163
47,000
6,789,658
1,456,497
229,483
56,975
1,629,005
5,928,585
214,300
-
6,142,885
42,481,888
$
10,551,229
$
103,975
$
52,929,142
Accumulated Depreciation
September 1,
2013
$
14,845,612
Additions
$
1,577,667
August 31,
2014
Retirements
$
-
$
16,423,279
5,095,176
339,247
47,000
5,387,423
Vehicles
1,010,004
155,254
56,975
1,108,283
$
20,950,792
$
2,072,168
89
$
103,975
$
22,918,985
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)
Property Insurance
Insurer: Texas Council Risk Management Fund
Insurance Amount
Locations:
2001 Cedar Bayou
6125 Hillcroft
7200 N. Loop East
3737 Dacoma
11151 Bob White
526 Applewhite
2627 Caroline
1313 Dennis
3630 West Dallas
1215 Dennis
1502 Ben Taud Loop
7011 Southwest Fwy.
7033 Southwest Fwy.
612A-E Branard
6607 Stonechase
6032 Airline Dr.
5518 Jackson
2800 S. McGregor
6603 Barbarella
5901 Long Dr.
5705 Warm Springs
6805 Oak Village Dr.
1200 Baker Street
3401 Corder Street
9610 Long Point, Suite 351
1500 S. Dairy Ashford, Suite 448
Policy Period
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
9/1/2013-8/31/2014
Building
$
90
1,037,501
1,224,580
1,963,700
4,125,804
213,634
185,947
3,194,465
143,421
4,702,845
996,052
5,500
15,225,062
957,561
749,798
166,303
1,227,880
360,680
225,690
4,513,994
254,640
536,712
-
Contents
$
73,060
60,587
550,770
141,538
21,324
390,806
6,060
260,350
11,197
305,579
2,471,763
200,578
6,272
140,079
21,000
49,113
23,660
689,374
15,858
60,587
70,138
177,652
2,812
5,250
Total
$
1,037,501
1,297,640
2,024,287
4,676,574
355,172
207,271
3,585,271
149,481
4,963,195
1,007,249
311,079
17,696,825
1,158,139
756,070
166,303
1,367,959
381,680
49,113
249,350
5,203,368
270,498
597,299
70,138
177,652
2,812
5,250
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (Continued)
Property
Insurer:
Policy Period:
General Liability
Insurer:
Policy Period:
Public Officials Errors and Omissions
Insurer:
Policy Period:
Employment Practices Liability
Insurer:
Policy Period:
Texas Council Risk Management Fund
09/01/2013-09/01/2014
Blanket Limit
$
57,679,134
Building Limit
$
40,925,800
BPP Limit
$
5,740,409
EDP Limit
$
9,901,954
Boiler/Machinery
Included
Business Income
$
1,000,000
Sublimit
$
1,000,000
Fine Arts
$
15,000
Valuation
RCV
Cause of loss
Special
Deductible except Named Storm Wind & Flood
$
1,000
Vacant Buildings
As scheduled
Named Storm Wind Deductibles (TIV=Bldg+BBP+EDP)
Tier 1 Per Occurrence/Location T/V
$
4,424,000
Harris County Per Occurrence/Location T/V
3% TIV or $100,000 minimum
Tier 2 Per Occurrence/Location T/V
$
1,000
Flood - Aggregate Limit
$
10,000,000
High Risk Zone
No Coverage
Other Locations other than 100 Year & other between
100 & 500 Year Flood Zones
$
10,000,000
Deductible
$
1,000
09/01/2013-09/01/2014
Combined Single Limit Per Occurrence
Deductible
09/01/2013-09/01/2014
Claims Made
Limit per Claim
Annual Aggregate
Deductible
Retro Date 08/31/96
09/01/2013-09/01/2014
Sublimit per Claim
Annual Aggregate
Deductible
Retro Date 08/28/89
Sublimit applicable to back wages, punitive damage,
non-compliance
91
$
$
1,000,000
1,000
$
$
$
1,000,000
3,000,000
10,000
$
$
$
50,000
100,000
10,000
$
-
Professional Liability
Insurer:
Policy Period:
Sexual Misconduct
Insurer:
Policy Period:
Auto Liability
Insurer:
Policy Period:
Auto Physical Damage
Insurer:
Policy Period:
09/01/2013-09/01/2014
Claims made
Limit per claim
Annual aggregate
Retro Date 08/28/1989
09/01/2013-09/01/2014
Sublimit per claim
Annual Aggregate
Retro Date 08/28/89
09/01/2013-09/01/2014
Combined Single Limit
Scheduled and Hired Vehicles
PIP per Person Limit
Uninsured/Underinsured Motorist
Bodily Injury Per Person
Bodily Injury Per Occurrence
Property Damage
Liability Deductible
09/01/2013-09/01/2014
Scheduled and Hired Autos
Comprehensive Deductible
Collision Deductible
Hired Physical Dmg Maximum
Nonowned Physical Damage
Comprehensive Deductible
Collision Deductible
Funeral Expenses
92
$
$
1,000,000
3,000,000
$
$
100,000
300,000
$
1,000,000
$
10,000
$
$
$
$
100,000
300,000
100,000
1,000
$
$
$
500
1,000
35,000
Excess
500
1,000
5,000
$
$
$
Excess Liability
Insurer:
Policy Period:
Workers Compensation
Insurer:
Policy Period:
Flood Insurance
Insurer:
Policy Period:
09/01/13 - 09/01/14
General Liability
Additional Limit of Liability
Retro: 08/31/03
Retro: 11/24/08
Retro: 11/24/08
Retro: 11/24/08
Public Officials E&O Liability
Retro: 08/31/96
Retro: 08/31/96
Retro: 08/31/96
Retro: 08/31/96
Auto Liability
Retro: 08/31/03
Retro: 11/24/08
Retro: 11/24/08
Retro: 11/24/08
Professional Liability
Retro: 08/28/96
Retro: 10/05/04
Not included under Excess Liability
Sexual Misconduct
Employment Practices
09/01/2013-09/01/2014
Workers Compensation
Named States
Per Accident Deductible
Aggregate Limit
Volunteers
Employer's Liability (applies to entire fund)
Elected/Appointed Officials
Travelers Flood
11/01/13-11/01/14
1502 Taub, Loop, Houston, TX
Contents
Cause of Loss
Valuation
Deductible
93
1M xs 1M
1M xs 2M
1M xs 3M
1M xs 4M
1M xs 1M
1M xs 2M
1M xs 3M
1M xs 4M
1M xs 1M
1M xs 2M
1M xs 3M
1M xs 4M
1M xs 1M
1M xs 2M
$
$
$
$
Statutory
Texas
100,000
300,000
Yes
Yes
Zone AE
181,200
Flood
ACV
500
MENTAL HEALTH AND MENTAL RETARDATION AUTHORITY
OF HARRIS COUNTY
August 31, 2014
Notary E&O
Insurer:
Policy Period:
Fiduciary Liability
Insurer:
Policy Period:
Western Surety
11/18/13 - 11/18/14
Limit of Liability
91 Notaries (as of 08/01/13)
Executive Risk Indemnity, Inc.
09/01/13 - 09/01/14
Claims Made - Prior Date 08/31/00
Limit of Liability Each Claim
Limit of Liability Each Policy Period
Defense within Limits of Liability
20,000
$
$
$
3,000,000
3,000,000
25,000
Per Locations Scheduled
Crime
Insurer:
Policy Period:
Cybersecurity
Insurer:
Policy Period:
Travelers Commercial
09/01/13 - 09/01/14
Public Employee Dishonesty Per Loss
Forgery Alterations
Deductible
Money & Securities - On Premise
Deductible
Money & Securities - Messenger
Deductible
Computer Fraud
Deductible
Money Order & Counterfeit Currency
Deductible
Property of Clients (Theft by Employees)
Deductible
Electronic Funds Transfer
$
$
$
$
$
$
$
$
$
$
$
$
$
$
400,000
200,000
2,500
25,000
2,500
25,000
2,500
3,000
1,000
3,000
1,000
200,000
2,500
100,000
$
$
$
$
3,000,000
3,000,000
500,000
25,000
4/24/2012
4/24/2012
Event Management
Co-insurance
Retention
Continuity Date
$
1,000,000
500%
50,000
4/24/2012
Cyber Extortion
Retention
Continuity Date
$
$
500,000
25,000
4/24/2012
Crisis Fund
Retention
Continuity Date
$
$
100,000
4/24/2012
Chartis Insurance
04/24/14 - 04/24/15
Limit of Liability
Security & Privacy Liability
Regulatory Action Sublimit of Liability
Retention
Retro Date Security Failures/Privacy Events
Continuity Date
$
94
SCHEDULE OF BOND COVERAGE (UNAUDITED)
Surety Company
Scope of Coverage
Amount
Travelers Commercial
09/01/2013 - 09/01/2014
Commercial Crime Policy
Public Employee Dishonesty Per Loss
Forgery Alterations
Deductible
Money and Securities - On Premise
Deductible
Money and Securities - Messenger
Deductible
Computer Fraud
Deductible
Money Order and Counterfeit Currency
Deductible
Property of Clients (Theft by Employees)
Deductible
Electronic Fund Transfer
$
$
$
$
$
$
$
$
$
$
$
$
$
$
400,000
200,000
2,500
25,000
2,500
25,000
2,500
3,000
1,000
3,000
1,000
200,000
2,500
100,000
Westen Surety
11/18/2013 - 11/18/2014
Errors & Omissions - Notary
Limit of Liability (91 Notaries)
$
20,000
95
SCHEDULE OF PROFESSIONAL AND CONSULTING FEES
AND CONTRACTED PROVIDER SERVICES (UNAUDITED)
Name
Agibi, Felicia
Allday Dental Associates
Anderson, Enedina
Angelo, Charlotte
ARC of Greater Houston
Avondale House
Baig, Mahera F.
Bairfield, Doris
Baldwin, Johnnie L.
Bassett, Mart E.
Bay Area Recovery Center
Bay Area Rehabilitation Center
Baylor College of Medicine
Baylor College of Medicine/Family Community Medicine
Baytown Opportunity Center
Bell, Sharon
Bocard, Elvida
Bolden, Sandra
Boyd-Goudeay, Ellen
Broussard, Gwendolyn
Brown, Andrea
Brown, Glenda Lee
Burns-Watts, Vanessa
Button's Inventory Service, Inc.
Carson J. Spencer Foundation
Case, Sheran
Chen, George Cherng-Ren
Cheyenne Center
Coleman, Billie
Communication Axess Ability Group
Cortez, Tywanna
CTLR Delivery & Transportation, Inc.
Cullison, Frederick B.
Data Shredding Services of Texas
Davis, Freddie, D.D.S.
Dean's Professional Services
Developmental Day Habilitation
Directions of Recovery, Inc.
Discovery Benefits, Inc.
Easter Seals of Greater Houston, Inc.
Eichelberger, Miriam L.
Elite Personnel Consultants
Elliot, Saddie
Falcon, Nicolas
Farzan, F. H., D.D.S.
Fifer-Harvey, L.J.
Foote, Alexandria
Forward Edge, Inc.
Fusion Healthcare Staffing, L.L.C.
Garcia, Alicia A.
Gary Brown & Associates, Inc.
Garza, Eileen R.
Goodman Technology Associates
City
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Dickinson, TX
Baytown, TX
Houston, TX
Houston, TX
Baytown, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Denver, CO
Katy, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Fargo, ND
Bellaire, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Pasadena, TX
Ogden, UT
Houston, TX
Houston, TX
Magnolia, TX
Humble, TX
96
Type of Service
Post-Doctoral Fellow
Dental Services
Foster/Companion Care
Vocational and Employment Training
Day Habilitation and Behavioral Therapy Services
Substance Abuse Treatment
Day Habilitation and Vocational Services
Residency Program Training
Medical Consolations/EKG Services
Day Habilitation
Pharmacy Inventory Services
Working Minds Training
Housing/ Transition Services
Interpreting Services
Transportation Services
Document Destruction
Dental Services
Temporary Staffing - Psychiatric Technicians
Day Habilitation
Co-Occurring Disorders Services
Employee Benefits Administration
Respite Services
Temporary Staffing
Dental Services
Consumer Advisor
Consumer Advisor
Pre-employment Testing
Psychiatrist Recruitment
Property Appraisal
Occupational Therapy
Technology Support Services
$
Amount
32,079
9,202
18,575
17,243
206,851
150,041
18,575
18,575
37,150
17,243
96,414
7,891
10,480
88,843
24,592
3,872
5,811
18,575
18,575
18,575
18,575
17,243
18,575
25,623
7,504
5,763
17,243
120,814
17,243
17,740
17,101
12,333
18,575
40,937
1,120
3,866
7,209
151,408
25,267
2,289,522
18,219
432,747
18,575
28,261
1,970
5,575
5,769
37,259
18,000
18,575
7,650
1,331
2,100
Name
Grant, Diana
Green, Imelia Jone
Green, Inez
Green, Lucretia
Haggerty, Sedalia
Haltmar, Warren, Sr.
Harris County Department of Education
Harris County Information Technology Center
Harris County Psychiatric Center
Harris Health System
Harvey, Betty H.
Haygood, Brandi
Healthcare of the Homeless
Henry, Carolyn D.
Hillsman, Candace
Hope Village
Houston Education Consult
Idea Integration Corporation
Jackson & Coker Locum Tenens
James, Llyod C., D.D.S.
Jarra, Isatu
Joel Elijah Adult Care, Inc.
Johnson, Rebecca
Johnson, Royce M.
JSA Health Texas PLLC
K & K Best Care EMS
Kantor, Michele
Kathuria, Aruna
Kent, Loretta
KES Care Learning & Developmental Center
Knight, Felecia
Krum, Ella Mae
Lac Hong Adult Day Care Center
Lamonte, Drew J,. DDS
Language Line Services
Laureles, Eusebio, Jr.
Lewis, Joseph
Lipscomb, Leon
Livingmind Project, Inc.
Locum Tenens.Com, LLC.
Lone State Veterans Association
Longoria, Jose
Luco, Glenda S.
Malbrough, Lela
Mann, Thomas H., Ph.D.
Manning, Tony
Marion Montgomery, Inc.
Martinez, Felix
Martinez, Rosibel
Masterword Services, Inc.
Mayberry, Christine
Mayberry, Mable Austin
McCaleb, Shirley
McDonald, Bobbie
MCV Consulting
Meyerland Family Dentistry PC
City
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Baytown, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Jacksonville, FL
Alpharetta, GA
Houston, TX
Houston, TX
Houston, TX
Highlands, TX
Houston, TX
Houston, TX
Bellaire, TX
Houston, TX
Spring, TX
Katy, TX
Houston, TX
Houston, TX
Crosby, TX
Houston, TX
Houston, TX
Monterrey, CA
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Alpharetta, GA
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Richmond, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Type of Service
Consumer Advisor
Speech Therapy Services
Business Analyst-Juvenile Sharing Program
Competency Evaluation and Restoration
Consumer Food Services
Consumer Advisor
Crisis/Peer Support Services
Day Habilitation
Psychological Evaluations
Information Technology Infrastructure Consulting
Temporary Staffing - Psychiatrist
Dental Services
Day Habilitation
Tele-Medicine Services
EMS Transportation
Day Habilitation
Day Habilitation
Dental Services
Respite Services
Day Habilitation
Temporary Staffing - Psychiatrist
Peer to Peer Counseling
Consumer Advisor
Psychologist
Consumer Advisor
Branding Project Management
Consumer Advisor
Strategic Planning Facilitation
Dental Services
97
$
Amount
18,575
5,165
4,631
1,425
34,606
18,757
67,969
24,200
4,433,294
75,096
2,456
14,361
82,927
24,606
25,254
6,600
35,950
75,600
35,500
1,260
6,614
32,799
7,554
10,379
62,294
2,351
18,575
17,243
25,254
6,270
17,243
18,575
3,905
3,682
92,443
17,243
18,575
10,143
3,731
392,917
67,029
18,575
6,244
17,243
12,056
4,188
19,000
6,438
17,243
246,197
15,778
17,243
17,243
17,243
1,500
3,483
Name
City
MHMR Brazos Valley
Mitchell, Christelene M.
Montemayor, Noemi
Moore, Betty
Morales, Laura R.
Morgan & Associates Dental
Muhammad, Sherriel Ann
NAMI Great Houston
National Council for Community Behavioral Healthcare
New Direction Job Services
Nhan Hien Dentistry
Nightingale Adult Day Center
Nixon Adult Day Center
Odyssey Adult Day Care, Inc.
Orybie, Antoine Simien
Owsley, Elizabeth A.
Pace Opportunity Center, Inc.
Parker Place Property Owners Association
Passages, Inc.
Pathway to Serenity
Patin, Jamie C.
PDG Architects
Pattillo, Brown & Hill L.L.P.
Perry, Charles Richard
Pre-Check, Inc.
Pringle, Sherry, D.D.S.
Prosumers International
Randle, Barbara E.
Reach Unlimited, Inc.
Resource Health Services
Richardson, Harry
Ridgway, Alma Garza
Riley, Michelle
Rivera, Stella
Rivers, Sherry
Roitberg, Paula Waters
Rosetta, Jessie
Ross, Sandra
Santa Maria Hostel, Inc.
Sanzone, Lisa
Shepherd, Lisa Gayle
Singletary, Leasie
Singleton, Shelia
Smith, Amber
Sodexo, Inc.
Soliant Health, Inc.
Solorzano, Maria
Special Texas Homes, Inc.
Spitler, Nancy
Stericycle, Inc.
Stuart, Claudette R., D.D.S.
Sue Davis Communications
Bryan, TX
Houston, TX
Crosby, TX
Houston, TX
Houston, TX
Houston, TX
Missouri City, TX
Houston, TX
Washington, DC
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Lake Jackson, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Waco, TX
Houston, TX
Houston, TX
Houston, TX
San Antonio, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Chicago, IL
Houston, TX
Houston, TX
Houston, TX
Houston, TX
Lake Forest, IL
Houston, TX
Houston, TX
Type of Service
98
Mental Health First Aid Training
Speech/Language Pathologist
Dental Services
IOOV Presentation
Day Habilitation
Dental Services
Day Habilitation
Day Habilitation
Consumer Advisor
Social Work Student Intern
Day Habilitation
Respite Services
Co-Occurring Disorders Services
Housing/Transition Services
Architectural Services
Audit Services
Consumer Advisor
Pre-employment Testing
Dental Services
Peer Support Training Services
Vocational Training, Day Habilitation
Respite Services
Consumer Advisor
Consumer Advisor
Consumer Food Service
Temporary Staffing- Pharmacy
Day Habilitation and Respite Services
Hazardous Waste Disposal
Dental Services
Public Relations Consulting
Amount
$
66,200
9,364
17,243
17,243
1,073
22,669
4,346
11,000
31,500
2,227
1,970
37,905
184,103
10,352
6,000
4,000
12,394
2,009
55,437
166,842
2,000
303,860
25,000
1,528
39,149
4,234
13,872
17,704
29,393
22,801
18,575
2,545
2,000
17,243
18,371
2,469
18,575
18,320
17,204
18,575
17,243
17,161
17,243
4,662
100,834
51,429
18,575
10,576
8,928
1,137
1,000
4,275
Name
City
Type of Service
Amount
Summit Dental Center
Houston, TX
Dental Services
Sunnyside Dental
Houston, TX
Dental Services
4,271
Symonette, Stephanie Y.
Houston, TX
Consumer Advisor
1,475
Taylor, Valor
Houston, TX
Texana Center
Rosenberg, TX
Texas A&M Engineering Experiment Station
College Station, TX
Electrical Energy Consulting
10,631
Linen Service
The Center
Houston, TX
Day Habilitation, Vocational, and Residential Services
Houston, TX
Counseling, Case Management, and Assessment Services
League City, TX
4,290
31,300
Houston, TX
The Gulf Coast Center
1,000
Texas Medical Center Hospital Laundry Co-op
The Council on Alcohol and Drugs
$
47,142
122,527
1,411,210
36,200
The Healthy Lunch Box
Houston, TX
Consumer Food Service
36,313
Thompson, Barbara
Houston, TX
17,243
Thompson, Steve, D.D.S.
Spring, TX
Dental Services
5,955
Thronton, Jackie
Houston, TX
18,575
Tjahjadi, Marie
Houston, TX
18,575
Tri-County MHMR
Conroe, TX
Day Habilitation
U.S. Healthworks
Houston, TX
Employee Drug Screening
Ultra Staff
Houston, TX
Temporary Staffing - Nursing
86,737
United States Veterans Initiative
Houston, TX
Peer to Peer Counseling
64,488
University Dental Center
Houston, TX
Dental Services
University of Houston - Clear Lake
Houston, TX
Behavorial Therapy Services
146,936
University of Texas Health Science Center
Houston, TX
Contract Psychiatrist
146,662
Psychiatrist Residents
48,191
98,357
University of Texas Health Science Center
Volunteers of America TX, Inc.
Houston, TX
Euless, TX
5,331
2,540
2,553
Walker, Credjun
Stafford, TX
Respite Services
4,672
Walker, Isreal L.
Houston, TX
Respite Services
4,521
Walker, Tres
Houston, TX
Respite Services
4,533
Westchase Dental
Houston, TX
Dental Services
21,460
Westwood Dental Management
Houston, TX
Dental Services
White, Leasie Shunta
Tomball, TX
17,445
Whitley Penn, L.L.P.
Houston, TX
Audit Services
60,000
Williams, June
Cypress, TX
17,485
Wilson, Calvin
Houston, TX
Consumer Advisor
Wolridge, Paula
Houston, TX
34,606
X-Ray X-Press
Houston, TX
X-Ray services
14,595
Zimac Care Center
Houston, TX
Day Habilitation and Respite Services
99
1,000
5,456
4,427
SCHEDULE OF LEGAL SERVICES (UNAUDITED)
Name
Eyman Associates, P.C.
City
Washington DC
Type of Service
Amount
Employee and general representation
$
1,876
Fragomenm Del Ray, Bernsen & Lowery, L.L.P
Chicago, IL
Employment and general representation
$
5,155
Fulbright & Jaworski, L.L.P.
Houston, TX
Employment benefits and general representation
$
16,658
Richard Hightower, P.C.
Houston, TX
Board Training
$
4,620
McGuire Woods, L.L.P.
Houston, TX
Real estate representation
$
400
Rogers, Morris & Grover, L.L.P.
Houston, TX
$
31,422
The Feldman Firm, P.C.
Houston, TX
$
55,426
Charles B. Wolfe
Houston, TX
Real estate represenation
$
9,875
100
SINGLE AUDIT SECTION
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Board of Trustees
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Mental Health Mental Retardation Authority of Harris County
(the “Agency”), as of and for the year ended August 31, 2014, and the related notes to the financial
statements, which collectively comprise the Agency’s basic financial statements, and have issued our
report thereon dated February 20, 2015. Our report includes a reference to other auditors who audited
the financial statements of Pasadena Cottages, Inc., Pecan Village, Inc., Villas at Bayou Park, Inc., Pear
Grove, Inc., and Acres Homes Gardens, Inc., as described in our report on the Agency’s financial
statements. This report does not include the results of the other auditors’ testing of internal control over
financial reporting or compliance and other matters that are reported on separately by those auditors.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’s
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control.
101
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all the deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The result of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Waco, Texas
February 20, 2015
102
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
OMB CIRCULAR A-133 AND THE STATE OF TEXAS SINGLE AUDIT CIRCULAR
To the Board of Trustees
Report on Compliance for Each Major Federal and State Program
We have audited the compliance of Mental Health and Mental Retardation Authority of
Harris County (the “Agency”) with the types of compliance requirements described in the U.S.
Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, the Texas
Health and Human Services Commission’s Guidelines for Annual Financial and Compliance
Audits of Community Mental Health and Mental Retardation Centers (21st Revision) and the
State of Texas Single Audit Circular that could have a direct and material effect on each of the
Agency’s major federal and state programs for the year ended August 31, 2014. The Agency’s
major federal and state programs are identified in the summary of auditor’s results section of the
accompanying Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Agency’s major
federal and state programs based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States;
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; the
103
Texas Health and Human Services Commission’s Guidelines for Annual Financial and
Compliance Audits of Community Mental Health and Mental Retardation Centers (21st Revision)
and the State of Texas Single Audit Circular. Those standards, OMB Circular A-133, the Texas
Health and Human Services Commission’s Guidelines for Annual Financial and Compliance
Audits of Community Mental Health and Mental Retardation Centers (21st Revision) and the
State of Texas Single Audit Circular require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal or state program
occurred. An audit includes examining, on a test basis, evidence about the Agency’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for
each major federal and state program. However, our audit does not provide a legal determination
of the Agency’s compliance.
Opinion on Each Major Federal and State Program
In our opinion, Mental Health and Mental Retardation Authority of Harris County
complied, in all material respects, with the types of requirements referred to above that could
have a direct and material effect on each of its major federal and state programs for the year
ended August 31, 2014.
Report on Internal Control over Compliance
Management of the Agency is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the Agency’s internal control
over compliance with the types of requirements that could have a direct and material effect on a
major federal or state program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal and
state program and to test and report on internal control over compliance in accordance with
OMB Circular A-133, the Texas Health and Human Services Commission’s Guidelines for
Annual Financial and Compliance Audits of Community Mental Health and Mental Retardation
Centers (21st Revision) and the State of Texas Single Audit Circular, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we
do not express an opinion on the effectiveness of the Agency’s internal control over compliance.
104
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with a type
of compliance requirement of a federal or state program on a timely basis. A material weakness
in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance
with a type of compliance requirement of a federal or state program will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance
with a type of compliance requirement of a federal or state program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies.
We did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the
scope of our testing of internal control over compliance and the results of that testing based on
the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, the Texas Health and Human Services Commission’s Guidelines for Annual
Financial and Compliance Audits of Community Mental Health and Mental Retardation Centers
(21st Revision) and the State of Texas Single Audit Circular. Accordingly, this report is not
suitable for any other purpose.
Waco, Texas
February 20, 2015
105
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditors' Results
Financial Statements:
Type of auditors' report issued
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiencies identified that are not considered to be material
weaknesses?
Noncompliance material to the financial
statements noted?
Federal and State Awards:
Internal control over major programs:
Material weakness(es) identified?
Significant deficiencies identified that are not considered to be material
weaknesses?
Type of auditors' report issued on compliance for major programs
Any audit findings disclosed that are required to be reported in accordance
with section 510(a) 2-7 of OMB Circular A-133 or the State of Texas
Single Audit Circular ?
Identification of major programs:
Federal:
U.S. Department of Health and Human Services:
Medical Assistance Program, CFDA # 93.778:
Delivery System Reform Incentive Payments (DSRIP)
State:
Texas Department of State Health Services:
General Revenue:
Mental Health
Psychiatric Hospitals
Atypical Antipsychotic Drugs
Texas Department of Aging and Disability Services:
General Revenue:
Mental Retardation
Permanency Planning
Dollar threshold used to distinguish between type A and type B federal programs
Dollar threshold used to distinguish between type A and type B state programs
Auditee qualified as low risk auditee?
Financial Statement Findings
None
Federal and State Award Findings and Questioned Costs
None
106
Unmodified
No
None reported
No
No
None reported
Unmodified
No
$1,273,647
$3,000,000
Yes
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
Federal
CFDA #
Program Title
Federal
Expenditures
Contract #
Federal Awards:
U.S. Department of Housing and Urban Development:
Transitional Housing Program - Safe Havens
14.235
TX0191L6E001306
and
TX0209L6E001205
$
Total U.S. Department of Housing and Urban Development
373,659
373,659
U.S. Department of Education:
Passed through Texas Interagency Council on Early
Childhood Intervention:
Special Education Grants to States (IDEA, Part B)
Special Education Grants for Infants and Families
with Disabilities (IDEA, Part C)
84.027
5382001541
165,960
84.181
5382001541
1,382,681
Total U.S. Department of Education
1,548,641
U.S. Department of Health and Human Services:
Passed through University of Texas Health Science Center at Houston:
Leadership Education in Neurodevelopment and
Related Disorders Training Program
Passed through Texas Department of State Health Services:
MH Block Homeless PATH Grant
TANF Transfer to Title XX Block Grant
Social Services Block Grant (Title XX)
Passed through Service of the Emergency Aid Resource
Center for the Homeless:
Passed through Texas Department of Assistive and
Rehabilitative Services (DARS):
Temporary Assistance for Needy Families (TANF)
Passed through Texas Health and Human Services Commission:
Technology (HITECH), Recovery Act
Delivery System Reform Incentive Payments (DSRIP)
93.110
1 T73MC22236-03
93.150
93.958
93.667
93.667
2014-044202
2014-044770
2014-044770
2014-044770
93.243
1H79SM059193-01
32,989
93.558
93.778
5382001541
5382001541
520,125
336,189
93.719
93.778
N/A
100-13-0000-00127
93.778
N/A
5,280
913,462
3,081,806
1,520,248
631,929
42,500
30,532,366
2,915,709
Total U.S. Department of Health and Human Services
40,532,603
Total Expenditures of Federal Awards
$
107
42,454,903
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
Program Title
State
Expenditures
Contract #
State Awards:
Texas Department of State Health Services:
General Revenue - Psychiatric Hospitals
General Revenue - Atypical Antipsychotic Drugs
2014-044770
2014-044770
$
2014-044770
Total Texas Department of State Health Services
54,039,277
29,408,898
7,243,770
90,691,945
Texas Department of Aging and Disability Services:
539-12-0143-00001
8,681,794
108,960
539-12-0143-00001
Total Texas Department of Aging and Disability Services
8,790,754
Texas Department of Assistive and Rehabilitative Services (DARS):
Service to Children with Autism
5382001541
1,219,655
819,099
5382001408
Total Texas Department of Assistive and Rehabilitative Services (DARS)
2,038,754
Texas Correctional Office on Offenders with Medical or Mental Impairments:
696-TC-14-15-L012
Juvenile Offenders Program
Adult Offenders
733,504
2,132,902
696-TC-14-15-L012
Total Texas Correctional Office on Offenders with Medical or Mental Impairments
Texas Department of Criminal Justice:
Parole - MH Offenders Program
Substance Abuse - MH Offenders Program
2,866,406
696-TC-14-15-L012
246,000
199,998
696-TC-14-15-L012
Total Texas Department of Criminal Justice
445,998
Total Expenditures of State Awards
$
104,833,857
Total Expenditures of Federal and State Awards
$
147,288,760
The accompanying notes are an integral part of this schedule.
108
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
AUGUST 31, 2014
Note 1 – General
The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable
state and federal awards of Mental Health and Mental Retardation Authority of Harris County (the
“Agency”) for the year ended August 31, 2014. The Agency's reporting entity is defined in Note 1 of the
basic financial statements. Federal and state financial awards received directly from federal and state
agencies, as well as federal financial awards passed through other governmental agencies, are included
on the Schedule of Expenditures of Federal and State Awards.
Note 2 – Basis of Accounting
The Schedule of Expenditures of Federal and State Awards is prepared on the modified accrual
basis of accounting. The modified accrual basis of accounting is described in Note 1 of the basic
financial statements. The information in this schedule is presented in accordance with the requirements
of OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations and the
State of Texas Single Audit Circular. Therefore, some of the amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the financial statements.
Note 3 – State Financial Assistance Guidelines
State financial assistance is subject to the Texas Health and Human Services Commission’s
Guidelines for Annual Financial and Compliance Audits of Community Mental Health and Mental
Retardation Centers (21st Revision). Such guidelines are consistent with those required under the
Single Audit Act of 1996, OMB Circular A-133 and Government Auditing Standards, issued by the
Comptroller General of the United States.
109

Comprehensive Annual Financial Report (CAFR) 2013-2014

Transcription

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