FAC Explorer

Audit 413011

FY End
2025-12-31
Total Expended
$1.85M
Findings
1
Programs
2
Organization: Houston Sro Housing Corporation (TX)
Year: 2025 Accepted: 2026-09-29
Auditor: PITTSFORD SAMUELS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238127 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $317,724 Yes 1
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $223,821 Yes 0

Contacts

Name Title Type
NZLCWXZFDAZ3 Linda Holder Auditee
7135269470 Nancy Mack Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Houston SRO Housing Corporation, and is presented 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. Because the schedule presents only a selected portion of the operations of Houston SRO Housing Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Houston SRO Housing Corporation.
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements.
The Corporation has received a loan under HUD's Housing Opportunities for Persons with AIDS Program in 1998. The loan balance at the beginning of the year is included in the schedule of expenditures of federal awards The Project has received no additional funds during the year. The loan balance is reported as net assets with donor restrictions in the statement of financial position at December 31, 2025.
The Corporation has elected not to use the 15% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Findings reference number: 2025-001 - Title and AL Number of Federal Program: Section 8 Moderate Rehabilitation Single Room Occupancy (AL 14.249). - Type of finding: Internal Control - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: No - Criteria: The detail for significant accounts should be analyzed on a timely basis to ensure the information is correct. - Statement of condition: Certain general ledger accounts, including cash and prepaid rent were not properly reconciled at December 31, 2025 and significant adjusting entries had to be made. Other entries were made for items that were improperly posted in the general ledger or needed to be accrued at year end. - Cause: Management oversight. - Effect: The in house financial statements overstated cash and prepaid rent by significant amounts and understated revenue. - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: N/A - Context: Management had some turnover in key personnel and moved its office to a new location. The office also needed a significant amount of improvements. Management's efforts were concentrated on the improvements and some of the accounting functions were overlooked. - Recommendation: Procedures should be set in place to ensure timely analysis of significant accounts are made and the books are reconciled properly. - Auditors' summary of auditee's comments: They are in agreement.