HEARNE HOUSING AUTHORITY

EIN: 766023135

UEI: CAFCR3D57YS3

Data as of August 25, 2026

HEARNE HOUSING AUTHORITY1 audit years2 findings
1
Audit Years
2
Total Findings
0
Repeat Findings

FY 2025-09-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on June 30, 2026. 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 December 30, 2026 (127 days from today).

What is a management decision? →
2025-001
Cash Management / Subrecipient Monitoring
MATERIAL WEAKNESS

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.

Show full finding ▾
Full finding narrative

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.

Corrective Action Plan

The Authority will adopt a formal written policy requiring at least quarterly review of each open Capital Fund grant, tracking obligation deadlines and percentage obligated by Budget Line Item. Quarterly reports will be presented to the Board of Commissioners. Management will implement written contracting procedures requiring a fully executed contract or purchase order on file before any Capital Fund draw is initiated in eLOCCS. Contracts will be executed no later than 60 days before the obligation end date. Management will conduct an immediate review of all open Capital Fund grants to confirm compliance with obligation and expenditure deadlines and identify any remaining penalty exposure. Results will be reported to the Board. The Authority will adopt a written cash management policy requiring staff to document anticipated disbursements, expected disbursement dates, and a review of current cash balances before each Federal drawdown. Draws will be limited to amounts needed within three business days in accordance with 2 CFR § 200.305(b)(3), regardless of the source of drawdown instructions. I, as the Executive Director will complete documented training on Federal cash management requirements under 2 CFR §§ 200.302 and 200.305. To ensure that the Authority is prepared for the future, the Housing Administrator will also complete documented training on Federal cash management to prepare for current Executive Director’s retirement come May 2027.

About Cash Management, Subrecipient Monitoring →
2025-002
Cash Management / Subrecipient Monitoring
MATERIAL WEAKNESS

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.

Show full finding ▾
Full finding narrative

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.

Corrective Action Plan

The Authority will adopt a formal written policy requiring at least quarterly review of each open Capital Fund grant, tracking obligation deadlines and percentage obligated by Budget Line Item. Quarterly reports will be presented to the Board of Commissioners. Management will implement written contracting procedures requiring a fully executed contract or purchase order on file before any Capital Fund draw is initiated in eLOCCS. Contracts will be executed no later than 60 days before the obligation end date. Management will conduct an immediate review of all open Capital Fund grants to confirm compliance with obligation and expenditure deadlines and identify any remaining penalty exposure. Results will be reported to the Board. The Authority will adopt a written cash management policy requiring staff to document anticipated disbursements, expected disbursement dates, and a review of current cash balances before each Federal drawdown. Draws will be limited to amounts needed within three business days in accordance with 2 CFR § 200.305(b)(3), regardless of the source of drawdown instructions. I, as the Executive Director will complete documented training on Federal cash management requirements under 2 CFR §§ 200.302 and 200.305. To ensure that the Authority is prepared for the future, the Housing Administrator will also complete documented training on Federal cash management to prepare for current Executive Director’s retirement come May 2027.

About Cash Management, Subrecipient Monitoring →

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.

Are you this organization?

Track your findings and corrective action plans across audit cycles.

Start tracking findings →

Do you fund this organization?

Monitor subrecipient audit findings and compliance status.

Start monitoring →

Product

Resources

Legal

Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.

© 2026 Single Audit Intelligence. All data is public domain.