Audit 55029

Title and CFDA Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development: Supportive Housing for the Elderly (Section 202) Finding Resolution Status - In Process Information on Universe and Population Size - Tenant move-ins during 2022. Tenant move-ins totaled three for 2022. Sample Size Information - 10% of tenant move-ins was selected for testing. A sample of two tenant move-ins were selected for testing. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - Enterprise Income Verification (EIV) Tenant Income Reports are required to be run within 90 days after the move-in information is transmitted to TRACS to confirm/validate the background history and income reported by the household. Statement of Condition - During testing of eligibility, it was noted that the Corporation did not run the income report for one tenant in a timely manner as part of the Enterprise Income Verification requirement. Cause - The Corporation did not comply with HUD's EIV compliance requirements under HUD Handbook 4350.3. Effect or Potential Effect - Income of one tenant moving into the property was not confirmed/validated using EIV reports in a timely manner. Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported. Context - During testing of compliance with eligibility regulations, one instance of noncompliance was noted out of a sample of two tenant files. Recommendation - The Corporation should implement internal controls to ensure compliance with HUD move-in and EIV report guidelines. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management believes adequate controls are in place to ensure substantial compliance. Training on move-in and EIV procedures is provided annually. Corrective action to be taken when staff do not comply with move-in and EIV procedures. Response Indicator - Agree Completion Date - December 31, 2023 Response - The Corporation was not in compliance with move-in and EIV guidelines as of December 31, 2022, and management will follow HUD's guidelines regarding income verification.

Title and CFDA Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development: Supportive Housing for the Elderly (Section 202) Finding Resolution Status - In Process Information on Universe and Population Size - Tenant move-ins during 2022. Tenant move-ins totaled three for 2022. Sample Size Information - 10% of tenant move-ins was selected for testing. A sample of two tenant move-ins were selected for testing. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - Enterprise Income Verification (EIV) Tenant Income Reports are required to be run within 90 days after the move-in information is transmitted to TRACS to confirm/validate the background history and income reported by the household. Statement of Condition - During testing of eligibility, it was noted that the Corporation did not run the income report for one tenant in a timely manner as part of the Enterprise Income Verification requirement. Cause - The Corporation did not comply with HUD's EIV compliance requirements under HUD Handbook 4350.3. Effect or Potential Effect - Income of one tenant moving into the property was not confirmed/validated using EIV reports in a timely manner. Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported. Context - During testing of compliance with eligibility regulations, one instance of noncompliance was noted out of a sample of two tenant files. Recommendation - The Corporation should implement internal controls to ensure compliance with HUD move-in and EIV report guidelines. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management believes adequate controls are in place to ensure substantial compliance. Training on move-in and EIV procedures is provided annually. Corrective action to be taken when staff do not comply with move-in and EIV procedures. Response Indicator - Agree Completion Date - December 31, 2023 Response - The Corporation was not in compliance with move-in and EIV guidelines as of December 31, 2022, and management will follow HUD's guidelines regarding income verification.