We'll call to order today's Fort Worth Housing Finance Corporation meeting.

First order of business is approval of the February 24th minutes.

All in favor?

Aye.

Any opposed?

All right, motion passes.

Next up, we have written reports, and Matthew Madero is here.

If we have any questions, do we have any questions?

All right, moving along.

Next up, we have the annual independent auditors report for fiscal year 2025.

Matt Steele, is that as we work on the PowerPoint, I'll just go ahead and get started because I know you guys are under a bit of a time crunch today or have had meetings that have been gone long.

So I won't uh I I will make sure I cover all of the important parts, but I won't uh dwell on things.

There are some required communications.

I heard some comments about if it's on the slide and you don't want to read it, don't read it.

So I will try to expedite things a little bit as much as possible for everybody.

So while they're working on that, I have uh actually printed out a copy of my presentation.

So I'll just go ahead and start and then we can catch up with the PowerPoint slide if that works for everybody.

So again, thanks for having me.

Uh good afternoon, everybody.

My name is Matt Still.

I'm the lead audit partner uh at Cone Resnik on the Fort Worth Housing Finance Corporation audit.

We've been working with Fort Worth for I would say a number of years now, probably seven or eight.

Um kind of lose track after time.

But um this year's audit, um we conducted our audit in accordance with generally accepted um auditing standards and also government auditing standards.

Um both opinions on the internal controls and the financial statements were both clean opinions, unmodified opinions.

So that means that from our opinion, uh as auditors, we believe that the financial statements are materially stated correctly.

Um there were no uh deficiencies in internal controls or compliance that needed to be reported.

Um Financial statements.

I don't have can't pull them up right now, but they will be in the PowerPoint slide if you guys have access to them and also the financial statements themselves.

Um just to highlight a few things for uh 2025 and 2023.

I'm sorry, 2025 and 2024.

Um the total assets were around 50 million for each year.

Uh liabilities were 27 27 million and 28 million in 2024, uh, which means we had a net increase or I'm sorry, ending equity of 23 million and 22 million respectively.

Uh moving on to the income statement or the PL operating revenue for 25 was three million.

It was six million in 2024.

Uh the difference or the decrease in the current year was there was a big grant last year that that didn't happen uh for 2025.

So that's the reason for the reduction in the revenues.

Um thank you.

Um expenses also went down during the current year because there were not as many loans that were given out to the different properties.

Um let's see, moving on.

All right, required communication with governance.

Um, some of these these next three slides, um, which I'll try to move through as quickly as possible, um, are required to be communicated with the audit committee.

And some of this I'll just let you guys read.

But um as part of our audit plan, we obtained copies of the internal control write-ups and we reviewed them with management for any potential updates to internal controls.

Once that information was updated, um, we did a walkthrough of that.

So if there were procedures in place that were supposed to be applied over bank statements or cash receipts, we went through and did a walkthrough to test those internal controls to make sure that they were functioning properly.

Um we also held fraud discussions with key management.

Um good news is there was no fraud to report.

Um, and then from there we started looking at the balance sheet, looking at the cash accounts, um, large material balances, receivables, accounts, um, uncollectible accounts, land leases, etc.

etc.

etc.

And then from there we tested that against either independent third-party information or direct confirmation with third parties.

Part two, we're required to be independent, obviously, as your auditors, which we we are.

Management is the ones responsible for picking the accounting policies, which are also described in the footnotes of the financial statements.

We didn't have any disagreements with management over any accounting policies that are in place.

Oh, as part of our planning of our audit, we are we are required to identify certain risk areas.

So I just want to point out on this slide where we say significant risks identified.

It was not anything as a result of our actual audit where we identified potential risks.

This is all part of our planning process up front where we evaluate where we need to spend the majority of our audit time.

And in fact, management override of controls and proper revenue recognition are by default under the auditing guidelines.