FAC Explorer

Audit 414222

FY End
2025-12-31
Total Expended
$309.13M
Findings
6
Programs
11
Organization: Houston Housing Authority (TX)
Year: 2025 Accepted: 2026-09-30
Auditor: DOEREN MAYHEW ASSURANCE PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1239419 2025-002 Material Weakness Yes E
1239420 2025-003 Material Weakness Yes E
1239421 2025-003 Material Weakness Yes E
1239422 2025-004 Material Weakness Yes E
1239423 2025-004 Material Weakness Yes E
1239424 2025-004 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $288.39M Yes 1
14.879 MAINSTREAM VOUCHERS $8.74M Yes 1
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $7.91M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $1.33M Yes 1
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $777,015 Yes 1
14.895 JOBS-PLUS PILOT INITIATIVE $687,445 Yes 0
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $588,452 Yes 0
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $220,762 Yes 1
14.267 CONTINUUM OF CARE PROGRAM $191,709 Yes 0
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $152,788 Yes 0
14.892 CHOICE NEIGHBORHOODS PLANNING GRANTS $134,896 Yes 0

Contacts

Name Title Type
V7SPYNFKXHN9 Kelly Haines Auditee
7132600755 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Houston Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher program (“HCV”), as included in the MTW program to be 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.
Expenditures reported on this 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 reimbursement.
The Authority did not elect to use the de minimis indirect cost rate.
During the year ended December 31, 2025, the Authority had no sub-recipients.
The Authority did not receive any noncash Federal assistance for the year ended December 31, 2025.
At December 31, 2025, the Authority is not the guarantor of any loans outstanding.

Finding Details

Finding 2025-002
Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control over Compliance Material Noncompliance (Repeated from prior year, Finding No. 2024-002) Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Section 8 Housing Choice Voucher (a total of 19 tenants selected for testing): • Nineteen files did not have annual recertification performed during the year. Low Rent Public Housing (a total of 40 tenants selected for testing): • One file did not have a required annual recertification performed during the year. Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges which included a large backlog of past due recertifications and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
Finding 2025-003
Eligibility Housing Voucher Cluster Material Weakness in Internal Control over Compliance Material Noncompliance (Repeated from prior year, Finding No. 2024-003) Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants we tested 18 tenants and the following deficiencies were noted: • Eighteen files did not have annual recertification performed during the year. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges which included a large backlog of past due recertifications and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
Finding 2025-004
Eligibility Section 8 Project-Based Cluster Material Weakness in Internal Control over Compliance Material Noncompliance (Repeated from prior year, Finding No. 2024-004) Condition: Out of an approximate population of 240 of tenants, 12 tenant files were tested and the following deficiencies were noted: • Twelve files did not have annual recertification performed during the year. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected tenant files out of the population as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges which included a large backlog of past due recertifications and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.