Finding Text
Finding 2025-001: Reportable Finding Considered a Significant Deficiency - Eligibility Program name: Section 202 Supportive Housing for the Elderly Assistance Listing: 14.157 Federal award Identification number: 121-EE032 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 EIV system in its entirety." Condition: Two of nine lease files tested did not have timely EIV reports. Cause: Internal controls over compliance with program compliance requirements are not operating effectively. Effect or Potential Effect: Assistance Payments could be incorrect. Known Questioned Costs: No known questioned costs. Context: Our sample included 9 units out of a population of 79 units; 2 errors were noted, indicating a potential systemic issue. Repeat finding: This is not a repeat finding. 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 SAHA PM has placed a clarification record added to the file. Moving forward, property supervisor will ensure that property manager runs and files away the EIV report prior to the Recertification effective date and the Existing Tenant Search prior to move in.