Finding Text
Finding 2025-001: Reportable Finding Considered a Significant Deficiency - Eligibility Program name: Project-Based Rental Assistance Assistance Listing: 14.195 Federal award Identification number: CA39L000046 / CA39M000149 Federal award year: 2025 Federal awarding agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Per HUD Handbook 4350.3, Chapter 9, Section 1, 9-5B "Owners must use the EIV system in its entirety". Condition: Management is not in compliance with HUD requirement for Housing Assistance Payment Contract Administration. Cause: Internal controls over compliance with program compliance requirements are not operating effectively. Effect or Potential Effect: Assistance Payments could be incorrect. Repeat finding: This is not a repeat finding. Questioned costs: There are no questioned costs associated with this finding. Perspective: EIV Summary Report, Income Report, and Income Discrepancy Reports was not in 2 of the 16 files tested. Recommendation: We recommend the Owner/Agent review controls over compliance with the EIV reporting requirements. Management’s response and corrective action plan (unaudited): Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) will implement a review process to verify billed subsidy amounts against the approved contract rent schedule, train staff on entering the correct approved contract rent amounts in Yardi, and reimburse the Federal program for identified overcharges.