Finding 1166213 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-22

AI Summary

  • Core Issue: The management company lacks access to the HUD EIV system, preventing eligibility determination and report generation.
  • Impacted Requirements: Compliance with the Enterprise Income Verification process is not being met, leading to unverified tenant information.
  • Recommended Follow-Up: Obtain access to the HUD EIV system, produce required reports, and implement training and monitoring procedures for ongoing compliance.

Finding Text

Criteria and Condition: The management company is required to use the Enterprise Income Verification for eligibility determination per the compliance supplement. There are numerous reports required to be created and reviewed by management on a periodic basis. Context: A sample of tenant files and related information was reviewed and certain forms that were required were not present. Through inquiries with management it was determined the organization did not have access to the HUD EIV system. Cause: The property manager and regional manager did not have access to the HUD EIV system, nor were there controls in place to ensure this was available. Effect: The required reports have not been produced and reviewed by management. In not utilizing the required EIV systems and producing the reports, information cannot be verified by HUD. Recommendation: The management company should acquire access to the HUD EIV, and begin producing and reviewing the required reports within required timeframes. The organization should further establish procedures that will ensure ongoing compliance. These procedures should include training and monitoring of responsible staff. Views of responsible officials and planned corrective actions: The appropriate reports will be produced and reviewed now that management has access to the HUD EIV system. Procedures are being implemented to ensure that this process is taking place.

Corrective Action Plan

Finding 2025-001. The management company is required to use the Enterprise Income Verification for eligibility determination per the compliance supplement. There are numerous reports required to be created and reviewed by management on a periodic basis. (1) Recommendation: The management company should acquire access to the HUD EIV, and begin producing and reviewing the required reports within required timeframes. The organization should further establish procedures that will ensure ongoing compliance. These procedures should include training and monitoring of responsible staff. (2) Actions Taken: Management has worked with HUD to obtain access and will begin performing this responsibility. The appropriate reports will be produced and reviewed once management has access to the HUD EIV system. Procedures are being implemented to assure that this process is taking place.

Categories

Subrecipient Monitoring Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1166212 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $220,825