Texas HHSC SFY 2025 Financial Compliance Report Is Now Open
- JConner
- 6 days ago
- 3 min read
Texas HHSC began accepting the SFY 2025 Financial Compliance Report on July 20, 2026. The report is being completed through the State of Texas Electronic Provider System, commonly referred to as STEPS.
The SFY 2025 submission is voluntary, but affected healthcare and human-services providers should still understand the new reporting process and determine how future requirements may apply to their programs.
Key Dates for the SFY 2025 Financial Compliance Report
According to HHSC:
The report opened in STEPS on July 20, 2026
The submission deadline is September 18, 2026
Completing the SFY 2025 report is voluntary
Providers should not assume that the voluntary status applies to every future reporting year. HHSC has published a separate collection schedule identifying which program providers must complete financial compliance reports or applicable cost reports in subsequent years.
Why Is HHSC Collecting This Information?
HHSC introduced the new financial compliance reporting requirements as part of its implementation of federal Medicaid payment-adequacy provisions.
The reporting process is intended to collect financial and compensation information from certain long-term services and supports and home-health providers. Applicable requirements vary by provider program and reporting year.
Providers should review the current HHSC collection cycle and program-specific instructions before deciding whether or how to participate.
Why Pay Attention if the 2025 Report Is Voluntary?
The voluntary reporting period gives providers an opportunity to become familiar with:
STEPS registration and user access
Required financial-compliance training
Program-specific reporting instructions
Accounting and payroll information needed for reporting
Management review and certification responsibilities
Potential gaps in existing financial records
Identifying access, training, reconciliation, or documentation problems during the voluntary period may make future required reporting easier to manage.
Training Is Required Before Using the Report
HHSC states that primary entity contacts, financial contacts, and cost-report preparers must complete the applicable web-based training before they can prepare, act on, or certify a Financial Compliance Report.
Providers should confirm that the appropriate personnel:
Have access to STEPS
Are assigned the correct system roles
Have completed the required training
Understand who will prepare, review, and certify the report
Waiting until the deadline approaches could create unnecessary access or workflow delays.
What Providers Can Do Now
Even if a provider does not submit the voluntary SFY 2025 report, management can begin preparing for future reporting by:
Reviewing the applicable HHSC reporting cycle
Confirming the organization’s STEPS contacts and access
Organizing accounting, payroll, revenue, and service information
Reconciling financial records before reporting begins
Documenting management review and approval responsibilities
Reviewing current program-specific instructions
Providers should rely on the current HHSC instructions applicable to their programs rather than assuming that cost-report and financial-compliance requirements are identical.
Free Texas HHSC Resources
JConner’s Texas HHSC Resource Library includes practical tools that can help providers strengthen financial-reporting readiness, including:
HHSC GL-to-Cost Report Reconciliation Worksheet
HHSC Financial Reporting & Internal Control Assessment
Texas HHSC Audit-Readiness Checklist
HHSC Supporting-Documents Checklist
How JConner Can Help
JConner assists Texas healthcare and human-services providers with financial-reporting readiness, accounting-record reconciliation, internal-control assessments, cost-report support, audit readiness, and supporting-document organization.
Official HHSC Resources
Providers should review the current HHSC Financial Compliance Report information, program-specific instructions and resources, and STEPS guidance.
This article is provided for general educational purposes and does not constitute legal, accounting, or regulatory advice. Requirements vary by provider, program, contract, and reporting year. JConner is an independent CPA firm and is not affiliated with or endorsed by Texas HHSC.
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