Finding 22396 (2022-001)

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Seventy-nine tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require accurate and complete verification of a tenant?s income through supporting documentation prior to move-in. Once the income has been verified through the EIV system, it should be utilized in determining the accuracy of the tenant?s portion of rent on form HUD-50059. Statement of Condition: The Project used inaccurate income verification support for one tenant?s initial income upon move-in on October 13, 2022, which resulted in the tenant being undercharged $350 per month until EIV verification was received in February 2023. This resulted in a substantially higher income than originally entered on the initial form HUD-50059. Cause: The Project did not adhere to HUD regulations for initial eligibility and income verification. Effect or Potential Effect: The tenant underpaid rent for a few months, and the eligibility verification and cost of assistance may have been disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure that tenant income utilized at move-in is accurate in determining the tenant?s monthly rent, and verification through the EIV system is completed in a timely manner. The Project should have made an immediate correction to form HUD-50059 upon receiving the correct income from the EIV system. Response Indicator: Agree. Completion Date: 2/2/2023 Response: Training on income calculations and including the double checking of calculations more than once for accuracy will be conducted with managers. In addition, compliance has created an income calculation worksheet with formulas where managers can enter data and the worksheet will complete the calculations.