Audit 406082

FY End
2025-09-30
Total Expended
$1.46M
Findings
2
Programs
2
Organization: HEARNE HOUSING AUTHORITY (TX)
Year: 2025 Accepted: 2026-06-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1222222 2025-001 Material Weakness Yes Cash Management
1222223 2025-002 Material Weakness Yes Cash Management

Programs

ALN Program Spent Major Findings
14.872 PUBLIC HOUSING CAPITAL FUND $1.03M Yes 1
14.850 PUBLIC HOUSING OPERATING FUND $438,221 Yes 1

Contacts

Name Title Type
CAFCR3D57YS3 Sherrie Conn Auditee
9792793221 Lori Cannon Auditor
No contacts on file

Finding Details

Grant TX24P06350121 was a Capital Fund Program grant awarded to the Authority February 22, 2021. The obligation end date of February 22, 2023 represented the 24-month deadline by which the Authority was required to obligate at least 90% of the grant. The penalty was applied to a subsequent grant, TX24P06350126, which had not been drawn prior to the reduction. Accordingly, no funds were disbursed or received by the Authority under TX24P06350126, and no liability to HUD exists. This matter represents a significant reduction in capital funding available to the Authority for fiscal year 2026 capital and management activities.
The Authority is a small public housing authority receiving funding under both the Public Housing Capital Fund Program (ALN 14.872) and the Public Housing Operating Fund (ALN 14.850). Total Federal expenditures under these programs during the audit period were $1,463,314 ($1,025,093 under ALN 14.872 and $438,221 under ALN 14.850). The drawdowns identified as part of this finding represent approximately 25.4% of total program expenditures.