A Report on the Audit of the Department of Housing and Community Affairs' Fiscal Year 2013 Financial Statements
Report Number 14-016
In our audit report dated December 20, 2013, we concluded that the Department of Housing and Community Affairs' (Department) basic financial statements and Revenue Bond Program Enterprise Fund financial statements for fiscal year 2013 were materially correct and presented in accordance with accounting principles generally accepted in the United States of America. We also concluded that the Department's computation of unencumbered fund balances of its Housing Finance Division complies with Texas Government Code, Sections 2306.204 and 2306.205. The Department published our audit report as part of its financial statements, which it intends to post on its Web site at www.tdhca.state.tx.us.
We also issued a report on internal control over financial reporting and on compliance and other matters as required by auditing standards (that report, including responses from management, is presented in the attachment). In that report, auditors identified that the Department had not updated a server's operating system or installed software patches to help ensure the security of the Department's data. Vulnerabilities from missing patches may leave the Department's server susceptible to internal and external attacks, which could lead to unauthorized access and compromise the Department's sensitive data.
Our procedures were not intended to provide an opinion on internal control over financial reporting or to provide an opinion on compliance with laws and regulations. Accordingly, we do not express an opinion on the effectiveness of the Department's internal control over financial reporting or on compliance with laws and regulations.
Additionally, we concluded that the Federal Data Schedule prepared by the Department was fairly stated in all material respects in relation to the fiscal year 2012 basic financial statements taken as a whole. We also issued a report on the Department's compliance with the Public Funds Investment Act.
Auditors also performed agreed-upon procedures to assist the Department in determining whether the electronic submission of certain information to the U.S. Department of Housing and Urban Development, Real Estate Assessment Center agreed with related hard-copy documents. Our procedures determined that the Department's electronically submitted information to the U.S Department of Housing and Urban Development, Real Estate Assessment Center agreed with the related hard-copy documents.
Auditors communicated an issue that was not material or significant to the audit objectives in writing to the Department's management.
As required by auditing standards, we will also communicate to the Department's Board of Directors certain matters related to the conduct of a financial statement audit.
Download the Acrobat
version of this report. (.pdf)