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Local Funding

Overview

The Provider Finance Department (PFD) Local Funding (LF) team, previously known as the Local Funds Monitoring (LFM) team, monitors the non-federal share funds of Medicaid payments that are provided by local governmental entities. The non-federal share funds are received by HHSC via an intergovernmental transfer (IGT) or through a certified public expenditure (CPE) process. HHSC, as the state Medicaid agency, is responsible for ensuring that all funds received from local governmental entities (LGEs) are permissible sources of non-federal share.

LF is comprised of the following teams:

  • Reporting Team – compiles and publishes both legislative and ad hoc reporting, maintains and manages LGE information, and conducts post determination reviews (PDRs).
  • Review Team – annually reviews funds that are transferred or certified by LGEs as the non-federal share of Medicaid supplemental and directed payments to ensure they comply with state and federal law and associated reporting requirements.
  • Payments Team – ensures IGT is received from LGEs, and payments are distributed to providers from directed and supplemental payment programs.

Announcements

The United States Department of Health and Human Services Office of Inspector General notified the Texas Health and Human Services Commission that they will terminate the audits Texas’ Use of Select Counties’ Local Provider Participation Funds (LPPFs) as the State Share of Medicaid Hospital Payments (i.e., Smith County (A-06-22-09005) and Amarillo, Tarrant, and Webb Counties (A-06-23-04005). A copy of the notification can be found here (.pdf).

Annual Reporting/LoFTS

Please note: The LoFTS login page can be found at login to LoFTS.

If you are required to update files in LoFTS and have questions, please email PFD_LFM@hhs.texas.gov.

Reporting Resources

LoFTS Resources

FFY 2024 LoFTS User Guides

FFY 2024 LoFTS Reporting Materials

Recorded Trainings and Meetings

FFY 2024 LoFTS Recorded Trainings

Note: this video may open in the browser. To download the file right click the link and click “Save link as”. If your media player auto-generates captions during training video playback, please refer instead to the video subtitles for correct spelling of acronyms.

LoFTS Risk Assessment Matrix

The LoFTS Risk Assessment Matrix shows the automated risk calculations built into LoFTS platform as of September 17, 2024.

These calculations comprise the risk scores that appear in the email received by a governmental entity upon completion of LoFTS Reporting. The cells marked "MANUAL" indicate where adjustments are made to risk scores by Local Funding after the LoFTS reporting period closes.

The information in the file below is subject to change as LoFTS improvements are made:

External Reports 

In accordance with the requirement of the 2023-24 General Appropriations Act, House Bill 1, 88th Legislature, Regular Session, 2023 (Article II, Health and Human Services Commission, Rider 15 (b)), the Texas Health and Human Services Commission (HHSC) must report certain financial, expenditure, and survey information regarding the use of local funds in the Medicaid program.

Annual Reporting Fast Facts
  • FFY 2023 (.pdf) - Please note that this report was completed before LFM changed to LF.
  • FFY 2024 (.pdf) (Updated January 6, 2025)
Rider Reports
Provider Feedback Surveys

2023

Contact Information

Statutes and Rules

General Information

GovDelivery

To receive GovDelivery notifications and alerts related to local funds please subscribe to Local Funding of Medicaid Payments.

Court Documents