Texas · Local government · under $2M in federal spending

HEARNE HOUSING AUTHORITY

HEARNE, TX

The FY2025 single audit reports 2 findings: 2 material weaknesses.

Score: 16 of 100 (FY2025 audit)

The sum of eight parts, each read from the audit. How the score works.

Part	Rule	Points	Max
Material weaknesses	8 points each	16	24
Significant deficiencies	3 points each	0	9
Repeat findings	5 points each	0	15
Longest repeat chain	2 years 3, 3 years 6, 4 years 9, 5+ years 12	0	12
Modified major-program opinions	qualified 8 each; any adverse or disclaimer 15	0	15
Questioned costs	known amount of $25,000 or more, by share and dollars	0	15
Going concern	auditor included a going-concern paragraph	0	5
Prior-year lateness	prior-year audit late or not filed, scored only with a finding	0	5
Score		16	100

Federal funding, FY2025

$1,463,314 in federal awards spent, across 2 programs. Largest funding agencies:

Agency	Spent
Department of Housing and Urban Development	$1,463,314

FY2025 audit

FAC record: 2025-09-GSAFAC-0000423297
Fiscal year end: September 30, 2025
Accepted by FAC: June 30, 2026
Federal spending: $1,463,314 · 2 programs
Major programs: 1
Score: 16 of 100

Finding 2025-001

material weakness

Program: PUBLIC HOUSING OPERATING FUND (14.850)
Compliance requirement: Cash management; Subrecipient monitoring
FAC record: FY2025 audit on fac.gov

Finding text from the filing

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.

Finding 2025-002

material weakness

Program: PUBLIC HOUSING CAPITAL FUND (14.872)
Compliance requirement: Cash management; Subrecipient monitoring
FAC record: FY2025 audit on fac.gov

Finding text from the filing

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.