FAC Explorer

Audit 413663

FY End
2025-12-31
Total Expended
$2.14M
Findings
1
Programs
3
Organization: Schertz Housing Authority (TX)
Year: 2025 Accepted: 2026-09-30
Auditor: BORING & COMPANY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238739 2025-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.73M Yes 1
14.850 PUBLIC AND INDIAN HOUSING $246,090 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $164,108 Yes 0

Contacts

Name Title Type
N47FJFQ6M1B3 Cristi Lajeunesse Auditee
8305832321 David Boring Auditor
No contacts on file

Notes to SEFA

The above schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Authority under of the federal government for the year ended December 31, 2025 The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administratie requirements, Cost Principles, and Audit Requirements for Fedarl Awards (Uniform Guidance). Because the Schedule presents only a selected portions of operations of the Authority, it is not intended ot and does not present the financial position, changes in net position, or cash flows of the Authority.
Expenditures reported on the Schedule are reported on the modified 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 reimbursement. The Authority did not elect to use the 15 percent de minimis cost rate as permitted in UG, 200.414.
In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Housing Choice Voucher Program, ALN No. 14.871, to be considered an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the total expenditures paid by the Authority.

Finding Details

Finding 2025-003
Finding 2025-003 ALN Number: 14.871 Name of Federal Agency: U.S. Department of Housing & Urban Development Type of Finding – Single Audit Material Weakness in Internal Control Over Financial Reporting Criteria: HUD requires that public housing authorities accurately report program activity in the Voucher Management System (VMS) and reconcile these submissions to the general ledger (GL) on a monthly basis. The Uniform Guidance (2 CFR 200.303) requires non-federal entities to establish and maintain effective internal control over federal awards, including accurate financial reporting and reconciliation processes. Port HAP revenue and expense is not being tracked properly in the GL. Condition: The Schertz Housing Authority did not properly track and reconcile its monthly VMS submissions to the general ledger. As a result, there were material discrepancies between the VMS-reported data and the HCV program’s financial statements, specifically related to income and restricted equity. Cause and Effect: The Authority did not follow their formal procedures to ensure that VMS submissions were reconciled to the general ledger each month. Material discrepancies existed in the HCV program’s financial statements, affecting reported income and restricted equity. Additionally, these discrepancies contributed to the Authority experiencing a funding shortfall in the HCV program by year-end, increasing the risk of questioned costs and noncompliance with HUD requirements. Recommendation: We recommend that the Schertz Housing Authority should work with their fee accountant to ensure that the financial records agree to the VMS submissions to the general ledger. View of Responsible Officials and Planned Corrective Action: We are working with our HUD field office to correct our VMS reporting. We are also working with our fee accountant and have switched our software to HAPPY so we can get better reporting. Responsible Official: Cristi LaJeunesse, Executive Director