June 19, 2026
Quick recap
The meeting focused on discussing current challenges and updates in substance use disorder treatment services across Texas, particularly in the context of recent funding changes, regulatory compliance, and operational impacts. Participants shared experiences about weather-related disruptions, discussed the administration's proposed $700 million for services with a focus on faith-based programming, and addressed concerns about state funding allocations and potential budget cuts. Noelle reported that the state is experiencing difficulties with tracking the 25% fund movement allowance due to unpredictable client flows, though HHSC has temporarily paused plans to restrict this flexibility. Multiple providers, including Deirdre and Robert, described challenges with residential treatment capacity, noting decreased patient volumes and shifts in payer mix, particularly following the closure of detox facilities and changes in insurance coverage. The group also discussed recent regulatory inspections, with Robert and Brad sharing experiences about citations and compliance challenges, particularly around electronic health records access…
Over the years, our auditors make sure that we follow federal regulations as published in the Uniform Grant Guidelines. We are very careful to document as follows:
Donated goods and materials fall under the Uniform Guidance’s treatment of “in‑kind contributions” and are primarily addressed in:
2 CFR § 200.306 – Cost Sharing or Matching
2 CFR § 200.434 – Contributions and Donations
Under the Uniform Guidance, donated goods and materials (for example, supplies... provided at no charge) are treated as third‑party in‑kind contributions.
Donated goods and materials can be counted only if all cost‑sharing conditions are met under 2 CFR § 200.306(b). Specifically, the contribution must:
Be verifiable in the recipient’s records
Not be counted toward another federal award
Be necessary and reasonable for accomplishing the project objectives
Be allowable under the cost principles in Subpart E
Not be paid by the federal government under another award
Be included in the approved budget when required
Conform to all other applicable provisions of Part 200
Donated goods and materials must be valued at their fair market value at the time of donation—that is, what a willing buyer would pay a willing seller in an arms‑length transaction. The recipient must use the same valuation methods it uses for its own purchased goods, ensuring consistency and auditability. [govinfo.gov]