CMHSP Financing
         A CMH is government – different 
           accounting system than non-profit or 
           business
         Not required to file 990
         Do not have profit or loss statements in 
           the traditional sense
         Contracts for funding are often cost 
           settled.
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        CMH financing
        Not subject to ERISA (pension plan 
         laws)
        Operate under GAAP (generally 
         accepted accounting principles) and 
         2CFR200 (formally A-87)
        Governs how purchases and expenses 
         are accounted for, and spread across 
         cost centers to determine unit costs
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        CMH financing
       We have federal, state and local 
         sources of funds.
       Federal is OBRA, Medicaid, grants, 
         Medicare.  Will often have a federal 
         grant number.  Federal funds over 
         $750,000 require a single audit 
         separate from financial audit.
       State funds are general funds and 
         anything categorical.
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        CMH financing
        Local funds are county match, interest, 
          donations, and for CMHSP’s that are 
          “423” boards, client fees and insurance 
          payments (3rd party)
        Not all CMHSPs are 423 boards.  They 
          are not able to count client fees and 
          insurance payments as local.  You must 
          use GF to cover costs for 423 revenues.
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          CMHSP – financing
           Under the Mental Health code, CMH’s are 
            responsible for 10% match on state 
            expenditures.  This includes GF and state 
            inpatient.  For state inpatient, we pay 10% of the 
            State’s net cost for providing care for a client, 
            after insurance reimbursement.
           We receive these bills periodically, and they may 
            not be entirely accurate or easy to understand.
           Local funds will also cover a general fund 
            overrun, and is essentially a CMHSP’s risk 
            reserve.
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