EIN: 871108041
UEI: EKVVCB64KNM3
Audited by: Sutton Frost Cary LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 27, 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 February 27, 2027 (177 days from today).
What is a management decision? →During reporting testing for federal grants, prior to submission, 1 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure during the period from January 1, 2025 to October 31, 2025, included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Repeat Finding: This finding is a repeat of finding 2024-002. Management implemented corrective actions during the current year and the number of exceptions decreased from the prior year. However, the controls have not yet operated effectively for a sufficient period to eliminate the deficiency. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2025-001: Reporting – significant deficiency in internal controls over compliance Economic Development Initiative, Community Project Funding and Miscellaneous grants Criteria: The Organization’s control over compliance stipulate that all reports submitted to grantor be approved by management. Condition: During reporting testing for federal grants, prior to submission, 1 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure during the period from January 1, 2025 to October 31, 2025, included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Repeat Finding: This finding is a repeat of finding 2024-002. Management implemented corrective actions during the current year and the number of exceptions decreased from the prior year. However, the controls have not yet operated effectively for a sufficient period to eliminate the deficiency. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.
Cause of Internal Control Issue: Transform 1012's grant reporting procedures included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. The effect of this is that bi-annual reporting was not fully documented in accordance with internal control procedures over compliance. Actions To Rectify Internal Control Issue: Management's Response: Carlos Gonzalez-Jaime, Executive Director, will ensure his written documentation of review and approval of all grant reports is kept on file by using electronic signature to indicate review and approval and storing signed copies of the documentation. • This will be completed by October 31, 2025, for 2025 reports through October 31, 2025. Going forward, signed documentation will be stored within seven days of the report being issued.
2024-002
FAC accepted this audit on September 29, 2025 — management decision was due March 29, 2026.
During reporting testing for federal grants prior to submission 2 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2024-002: Reporting – significant deficiency in internal controls over compliance Economic Development Initiative, Community Project Funding and Miscellaneous grants Criteria: The Organization’s control over compliance stipulate that all reports submitted to grantor be approved by management. Condition: During reporting testing for federal grants prior to submission 2 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.
2. In response to Finding 2024-002: Reporting – significant deficiency in internal controls over compliance Economic Development Initiative, Community Project Funding and Miscellaneous grants, please note the following: Cause of Internal Control Issue: Transform 1012’s grant reporting procedures included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. The effect of this is that bi-annual reporting was not fully documented in accordance with internal control procedures over compliance. Actions To Rectify Internal Control Issue: Management’s Response: Carlos Gonzalez-Jaime, Executive Director, will ensure his written documentation of review and approval of all grant reports is kept on file by using electronic signature to indicate review and approval and storing signed copies of the documentation. • This will be completed by October 31, 2025, for 2025 reports through October 31, 2025. Going forward, signed documentation will be stored within seven days of the report being issued.
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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