Revision 24-2; Effective Sept. 16, 2024

Categorical Reimbursement

PHC categorical funding (cost reimbursement) is used to develop and maintain grantee infrastructure for providing primary health care and related health services. The funding can be used to support clinic facilities, staff salaries, utilities, medical and office supplies, equipment, travel and direct medical services. All services will be reimbursed on a cost reimbursement basis. Costs may be assessed against any of the following categories in the submitted budget workbook:

• Personnel
• Fringe Benefits
• Travel
• Equipment and Supplies
• Contractual
• Other
• Indirect Costs

PHC funds are disbursed to grantees through an invoicing system as expenses are incurred during the grant period. Grantees are required to submit a Monthly Reporting Packet (MRP) for cost reimbursement of approved categorical budget(s). When the total award is expended, no additional funds will be available to the grantee for reimbursement. When program expenses exceed program income, the invoice will result in a payment. Program income includes all fees paid by PHC program clients, client copay collection, and non-HHSC funds such as grants and donations.

Accurate financial records must be maintained for quality assurance, fiscal monitoring, and programmatic evaluation by HHSC.

Budget Workbook

The grantee will complete and submit a budget workbook at the beginning of each new fiscal year. The grantee’s total approved budget award consists of the allocated individual budget categories listed on Form B – Budget Summary.

Budget revisions requested throughout the year must be submitted to HHSC for approval.

For budget workbook revision requests, the grantee will submit requests directly to the assigned contract manager. Please include the initial approved budget workbook and the revised budget workbook, along with the justification for the revision in the submission.

Monthly Reporting Packet (MRP)

At the start of each fiscal year, the prepopulated MRP (forms MR, 4116 and 225) will be sent via email by the Reimbursement Officer. The MRP and the required supporting documentation, which must include a detailed general ledger and any documents that support the requested reimbursement, are required to be completed and submitted monthly within 30 calendar days after the last day of the preceding month. The submissions that are not received timely will require justification. MRPs that are incomplete or incorrect will be returned for corrections. All corrections are due within five business days.  MRP’s that have been altered will not be accepted.

Grantees must continue to submit the MRP even after the grant award amount has been expended. Any expenditures over the grant award after deducting program income should be reflected under “Non-HHSC Funding".

Reconciling Errors on Previously Submitted MRPs

Incorrect or missing information that requires clarification or follow-up by HHSC staff may delay payment. A response is required within five business days of the initial outreach to the grantee. If expenses are overstated on one month’s invoice, the following month’s expenses should be reduced accordingly. If a MRP requires a correction, grantees should resubmit a corrected MRP with supporting documentation as a new email submission to HDS.ADS@hhs.texas.gov.  A revised MRP is applicable in the event an initial submission has already been processed and reimbursed to the grantee but requires a correction.

Supplemental MRP

Instances can occur that result in missed reporting of a prior month’s services that have not yet been billed to PHC. Any expenses incurred prior to the current service month must be submitted as a supplemental MRP, with a separate MRP for each service month applicable. Please use your MRP to submit a supplemental to HDS.ADS@hhs.texas.gov. Please include “supplemental” in the email message subject line. In addition, select “supplemental” on the MR tab “Voucher Type” cell dropdown list.

Submission of Final MRP

Grantees may have additional reimbursable costs to submit, following the submission of their initial August MRP. Any additional reimbursement request must be received by Oct. 15. Please mark this as FINAL.

Reimbursement requests submitted over 45 calendar days after the contract term end will not be paid. If the 45-day deadline falls on a weekend, the final invoice and MRP must be submitted prior to this date.

Quarterly Submission Requirements

In addition to the monthly submission requirements, the following are required to be submitted quarterly and

• Form 225, section B - Service Category (Quantity/Amount)
• Signed Financial Status Report (Form 269A)

Quarterly requirements are due by the last business day of the month following the end of each quarter. The exception is the final quarter, which is due 45 calendar days after the end of the contract period (Oct. 15).

End of Fiscal Year Submission Requirements

In addition to the monthly and quarterly submission requirements, the following is required to be submitted:

• End of Fiscal Year Reporting (Form PHC 325)

Form PHC 325 can be found on the Family Clinical Services Contractor Portal under Primary Health Care (sharepoint.com). Yearly requirement is due within 60 calendar days of the end of the fiscal year.