FAC Explorer

Audit 407980

FY End
2025-12-31
Total Expended
$13.21M
Findings
1
Programs
2
Organization: Buffalo Bayou Partnership and Affiliates (TX)
Year: 2025 Accepted: 2026-07-27
Auditor: BLAZEK & VETTERLING

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1224784 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $9.95M Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $3.26M Yes 1

Contacts

Name Title Type
TKEFDC1LFF95 Michele Marvin Auditee
7137520314 Kay Walther Auditor
No contacts on file

Notes to SEFA

Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in the Partnership’s financial statements in conformity with generally accepted accounting principles. The Partnership has not elected to use the 10% de minimis cost rate for indirect costs and does not charge indirect costs to its federal grants. The Partnership does not have any subrecipients.
The Partnership received a U. S. Department of Housing and Urban Development deferred payment loan funded by Assistance Listing #14.228 passed through the City of Houston totaling $9,950,000. The balance of the loan outstanding at December 31, 2025 is reported in the schedule of expenditures of federal awards. The grant agreement expires 40 years from the date of project completion.
In 2023, the Partnership received an award of $5,453,853 from the U. S. Department of Housing and Urban Development and incurred to date $3,255,230 in allowable expenses. The program was omitted from the schedule of expenditures of federal awards in prior years (see finding #2025-002). Expenditures related to this program were incurred and reported in the Partnership’s financial statements as expenses in the following period: December 31, 2023-$44,750, December 31, 2024-$477,264, December 31, 2025- $2,733,216, Total expenditures-$3,255,230.

Finding Details

Finding 2025-002
Finding #2025-002 – Material Weakness and Material Noncompliance. Applicable federal program: U.S. Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants, Assistance Listing #14.218, Passed through the City of Houston, Contract year: 11/07/23 – 10/31/26. Criteria: Schedule of Expenditures of Federal Awards – Management is responsible for preparing a complete and accurate schedule of expenditures of federal awards (SEFA) in accordance with Uniform Guidance §200.510. Condition and context: Management failed to include a federally funded contract on the SEFA for the last two years totaling $522,014. Omitting these expenditures from the SEFA resulted in incorrectly reported federal expenditures. Cause: The omission occurred because the auditee lacked adequate review of grant awards to ensure all federal expenditures were identified and captured. While expenditures for this grant were tracked in the general ledger, the Partnership did not identify the award as federal and therefore did not include the program on the SEFA at year end. Effect: The omission of these expenditures resulted in a material understatement of total federal awards expended on the last two SEFA. Consequently, the program was not included in the total of federal expenditures reported. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA and reconcile the federal expenditures to the federal program revenue on a routine basis. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.