Finding 1149938 (2024-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-13

AI Summary

  • Core Issue: There were instances of noncompliance with HUD regulations regarding the dissemination of Electronic Income Verification (EIV) information.
  • Impacted Requirements: The organization did not adhere to the EIV Rules of Behavior as outlined in the HUD Multifamily Program User Manual.
  • Recommended Follow-Up: Management should implement additional procedures and monitor compliance to ensure proper handling of EIV information.

Finding Text

Department of Housing and Urban Development Finding 2024-002 Section 8 New Construction and Substantial Rehabilitation, AL 14.182 Statement of Condition During the procedures applied to a sample of two tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding dissemination of Electronic Income Verification (EIV) information. One instance where EIV information was provided in electronic format to the independent public accountant were noted. Criteria Organization is responsible for adhering to the EIV Rules of Behavior in accordance with Section 4.1.1 of the EIV Multifamily Program User Manual. Cause Organization employees failed to follow the policies and procedures which have been established for proper dissemination of EIV information in accordance with HUD guidelines and management policies. Effect or Potential Effect Noncompliance with HUD guidelines could result in tenant personal information being disseminated to unauthorized individuals. Questioned costs: None Context: N/A Identification as a repeat finding: No Recommendation Management should establish additional procedures and monitor compliance with those procedures to ensure proper dissemination of EIV information in accordance with guidelines specified by HUD. Auditor Noncompliance Code: R - Section 8 program administration Reporting Views of Responsible Officials We agree with the finding. Personnel have been retrained and the EIV policy and forms have been reviewed.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 573493 2024-002
    Material Weakness
  • 573494 2024-003
    Material Weakness
  • 573495 2024-004
    Material Weakness
  • 573496 2024-002
    Material Weakness
  • 573497 2024-003
    Material Weakness Repeat
  • 573498 2024-004
    Material Weakness
  • 1149935 2024-002
    Material Weakness
  • 1149936 2024-003
    Material Weakness
  • 1149937 2024-004
    Material Weakness
  • 1149939 2024-003
    Material Weakness Repeat
  • 1149940 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $6.24M
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $2.75M