FAC Explorer

Finding 1206649 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-14
Audit: 398748
Organization: Las Bougainvilleas Senior Housing, Inc. (CA)
Auditor: APRIO LLP

AI Summary

  • Core Issue: Management is not following HUD's requirement to use the EIV system fully, leading to potential inaccuracies in assistance payments.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3, specifically regarding timely EIV report generation for tenant eligibility.
  • Recommended Follow-Up: The Owner/Agent should strengthen internal controls to ensure EIV reports are consistently run on time.

Finding Text

Finding 2025-001: Reportable Finding Considered a Significant Deficiency - Eligibility Program name: Supportive Housing for Elderly Assistance Listing: 14.157 Federal award Identification number: 121-EE187-NP 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 reports were not run within the required time frame for 2 of 8 tenants tested. Recommendation: We recommend the Owner/Agent review controls over compliance with the EIV reporting requirements. Management’s response and corrective action plan (unaudited): Property Manager has reviewed the Course Presentation Handbook on Enterprise Income Verification Specialist (EIVS) and will ensure EIV Income reports are run on time.

Corrective Action Plan

Management’s response and corrective action plan (unaudited): Property Manager has reviewed the Course Presentation Handbook on Enterprise Income Verification Specialist (EIVS) and will ensure EIV Income reports are run on time. In addition, management at Casitas of Hayward, Inc. ("Casitas") will implement a review process to ensure that all required EIV reports are run timely and maintained in the tenant lease file as required by HUD Handbook 4350.3, Chapter 9, Section 1, 9-58.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $712,781