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Presentation, discussion, and possible recommendation for Board approval regarding a Request for Proposal issued by the Texas Department of Housing and Community Affair for audit services and selection thereof.
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RECOMMENDED ACTION
recommendation
WHEREAS, the Department is required to undergo an annual audit of its books and accounts, an annual audit of the Housing Trust Fund, and to obtain audited financial statements for the Housing Finance Division and the Supplemental Bond Schedules;
WHEREAS, in accordance with Tex. Gov’t Code §321.020 (a), the Department obtained approval for delegation of authority from the State Auditor’s Office to engage a private auditor;
WHEREAS, in accordance with Tex. Gov’t Code §2306.074 and the State of Texas Procurement and Contract Management Guide, the Department issued a Request for Proposal for audit services and has selected a firm; and
WHEREAS, in accordance with Tex. Gov’t Code §2261.254, the Department is required to obtain Board approval for any purchase of goods or services that may exceed an aggregate contract value of $1,000,000;
NOW, therefore, it is hereby
RESOLVED, that the selection of this firm is presented to this meeting, is hereby recommended for approval to the TDHCA Governing Board; and,
FURTHER RESOLVED, that upon approval by the TDHCA Governing Board, the Department is authorized to execute an agreement for audit services with such firm.
BACKGROUND
In accordance with Tex. Gov’t Code §2306.074, the Department is required to undergo an annual audit of the Department’s books and accounts. In addition, Tex. Gov’t Code §2306.204 requires an annual audit of the Housing Trust Fund to determine the amount of unencumbered fund balances that is greater than the amount required for the reserve fund.
At the conclusion of the Fiscal Year 2025 audit, the State Auditor’s Office communicated their discontinuation of the financial audit for the Department. In February 2026, the Department received a delegation of authority to employ a private auditor to audit its basic financial statements, Revenue Bond Program financial statements, and the Housing Finance Division’s unencumbered fund balance computation.
In March 2026, the Department issued a Request for Proposal for audit services and responses were due on April 7, 2026. A team of five staff evaluated the responses and selected CliftonLarsonAllen LLP. The cost for the first year of the audit will be $404,000 with an option, at the Department’s discretion and the delegation of authority granted by the State Auditor’s Office, to renew the contract for three additional one-year periods with each renewal subject to a 4% cost escalation.
Due to their extensive experience, knowledge and resources; staff expects they will continue to sustain the level of service performed by the State Auditor’s Office and provide the best value to the Department.
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