Houston Business Development Inc.

EIN: 760216784

UEI: E7J4V89LZWE7

Data as of August 25, 2026

Houston Business Development Inc.4 audit years7 findings4 repeat
4
Audit Years
7
Total Findings
4
Repeat Findings

FY 2022-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on August 30, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 2, 2025 (541 days ago).

What is a management decision? →
2022-001
Reporting
REPEAT

The Organization did not comply with the reporting requirements for ALN 14.218, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

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Full finding narrative

2022-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: U.S. Department of Housing and Urban Development passed through City of Houston, Community Development Block Grant, ALN: 14.218, Award No: 4600016414-2021-00911 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 14.218, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-22, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2022 audit report to the Federal Clearinghouse by August 31, 2024.

Prior Finding References

2021-001

About Reporting →
2022-002
Reporting
REPEAT

The Organization did not comply with the reporting requirements for ALN 21.024, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

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Full finding narrative

2022-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: U.S. Department of Treasury Community Development Financial Institutions, ALN 21.024, Award No: 21RRP057157 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 21.024, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-22, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2022 audit report to the Federal Clearinghouse by August 31, 2024.

Prior Finding References

2021-002

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2022-003
Reporting
REPEAT

The Organization did not comply with the reporting requirements for ALN 21.019, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

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Full finding narrative

2022-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: Coronavirus Relief Program passed through City of Houston, ALN 21.019 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 21.019, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2022. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-22, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2022 audit report to the Federal Clearinghouse by August 31, 2024.

Prior Finding References

2021-003

About Reporting →

FY 2021-12-31

FAC accepted this audit on August 30, 2024 — management decision was due March 2, 2025.

2021-001
Reporting

The Organization did not comply with the reporting requirements for ALN 14.218, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

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Full finding narrative

2021-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: U.S. Department of Housing and Urban Development passed through City of Houston, Community Development Block Grant, ALN: 14.218, Award No: 4600016414-2021-00911 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 14.218, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-21, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2021 audit report to the Federal Clearinghouse by August 31, 2024.

About Reporting →
2021-002
Reporting

The Organization did not comply with the reporting requirements for ALN 21.024, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Show full finding ▾
Full finding narrative

2021-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: U.S. Department of Treasury Community Development Financial Institutions, ALN 21.024, Award No: 21RRP057157 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 21.024, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-21, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2021 audit report to the Federal Clearinghouse by August 31, 2024.

About Reporting →
2021-003
Reporting
REPEAT

The Organization did not comply with the reporting requirements for ALN 21.019, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Show full finding ▾
Full finding narrative

2021-001 Significient Deficiency in Internal Control over compliance with Reporting Requirements Programs: Coronavirus Relief Program passed through City of Houston, ALN 21.019 Criteria: Section 200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit fiscal period. Condition: The Organization did not comply with the reporting requirements for ALN 21.019, and did not timely submittd the data collection form and reporting package to the Federal Audit Clearinghouse for the year ended December 31, 2021. Cause: The Organization experienced extended disruptions in its fiscal department due to COVID-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. In addition, the Organization lacked adequate resources and management supervision for the grant program. Effect: Non-compliance with a compliance requirement of the Uniform Guidance that is relevant for timely review of the Organization's performance in the federal program. Questioned Costs: No questioned costs were noted for non compliance with the reporting compliance requirements. View of Responsible Officers and Planned Corrective Action: Management agres with the finding. See correction action plan.

Corrective Action Plan

The Organization's internal control over compliance did not ensure timely submittal of the Single Audit reporting package, including the audited financial statements and data collection to the Federal Audit Clearinghouse, as required by the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: Regrettably, HBDI has been delayed in its timely submission of its annual audit report for the fiscal year ended 12-31-21, due primarily to ongoing illnesses and prolonged medical related absences suffered by members of our accounting department, coupled with the impact of Covid-19 pandemic. Because of the staffing constraints, HBDi engaged an outside CPA firm to assist with upgrading software systems, updating accounting policies and procedures, and identifying additional accounting department personnel to assure the timely submission of audit reports going forward. The HBDi President has implemented the aforementioned corrective actions and will be responsible for assuring submission of the 2021 audit report to the Federal Clearinghouse by August 31, 2024.

Prior Finding References

2020-001

About Reporting →

FY 2020-12-31

FAC accepted this audit on April 19, 2024 — management decision was due October 19, 2024.

2020-001
Reporting

CRITERIA: Section §200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit fiscal period. CONDITION: Entity’s data collection form and audit reporting package for the six-month reporting fiscal period ended December 31, 2020, were not submitted in a timely manner to the Federal Audit Clearinghouse. The Uniform Guidance required that the submittal be made by or before March 31, 2022 (inclusive of the six months extension beyond the original due date of September 30, 2021, granted by the OMB to accommodate business disruptions caused by Covid-19 pandemic.) CAUSE: It appears the organization experienced extended disruptions in its fiscal department due to the Covid-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. EFFECT: Non-compliance with a compliance requirement of the Uniform Guidance that is considered relevant for timely review of the organization’s performance of the federal program. RECOMMENDATION: Establish processes and controls, including planning in advance for skilled personnel or alternative actions, bearing in mind audit reporting and compliance deadlines, in order to enhance the overall operational efficiency in the accounting and financial reporting functions as well as ensure compliance with the financial and audit report submission due dates.

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Full finding narrative

CRITERIA: Section §200.512 of the Uniform Guidance, Report Submission, requires that the audit must be completed and the data collection form and audit reporting package be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit fiscal period. CONDITION: Entity’s data collection form and audit reporting package for the six-month reporting fiscal period ended December 31, 2020, were not submitted in a timely manner to the Federal Audit Clearinghouse. The Uniform Guidance required that the submittal be made by or before March 31, 2022 (inclusive of the six months extension beyond the original due date of September 30, 2021, granted by the OMB to accommodate business disruptions caused by Covid-19 pandemic.) CAUSE: It appears the organization experienced extended disruptions in its fiscal department due to the Covid-19 pandemic and other health challenges, resulting in the late completion of financial records and readiness for audit activities. EFFECT: Non-compliance with a compliance requirement of the Uniform Guidance that is considered relevant for timely review of the organization’s performance of the federal program. RECOMMENDATION: Establish processes and controls, including planning in advance for skilled personnel or alternative actions, bearing in mind audit reporting and compliance deadlines, in order to enhance the overall operational efficiency in the accounting and financial reporting functions as well as ensure compliance with the financial and audit report submission due dates.

Corrective Action Plan

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: The management and board of directors of Houston Business Development, Inc. (HBDi) acknowledge the importance of timely submission of the Single Audit reporting package. As HBDi has a small accounting staff, regrettably, circumstances beyond our control involving prolonged absences and illness of essential personnel, coupled with the stifling economic impact of Covid-19, contributed to the submission delay. To assure compliance going forward, we have engaged the support of an outside CPA firm to assist us through a transitional period currently underway, which includes upgrading software systems, updating accounting policies/procedures and expanding accounting department personnel. HBDi President, Marlon Mitchell, will be responsible for implementing the aforementioned actions, with an anticipated completion date of August 31, 2024.

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Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

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