Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT
Department of Housing and Urban Development Finding, 2023-001: Major Program: Section 202 Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157
STATEMENT OF CONDITION
One tenant file, out of six files reviewed, was for a tenant who moved in during the year and management did not properly generate the Enterprise Income Verification (EIV) report timely.CRITERIA
HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to review the EIV report within 90 days after transmission of the move in certification to the Tenant Rental Assistance Certification System (TRACS).
EFFECT OF CONDITION
The EIV report for the tenant moved in was not generated until after the 90-day period specified by HUD.
CONTEXT
During audit fieldwork, six tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria and HUD lease requirements. Of the six tenant files examined, one tenant was a new move-in. The tenant’s file did not contain the EIV verified in the required 90-day timeframe.
CAUSE OF CONDITION
The procedures to ensure compliance over HUD tenant compliance, including EIV verification, were not followed timely.
RECOMMENDATION
The auditor recommends ensuring all tenants’ 90-day EIV reports are generated within the required time period to verify tenant information promptly and help reduce errors in subsidy payments.
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS
The Project will be monitoring use of the EIV system for move ins and recertifications.