Finding 371004 (2023-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-02-28

AI Summary

  • Core Issue: Noncompliance with HUD regulations regarding the use of the EIV system was identified in tenant lease files.
  • Impacted Requirements: Required forms were not obtained within 90 days for new tenants and before recertification for existing tenants.
  • Recommended Follow-Up: Management should strengthen procedures and monitor compliance to align with HUD guidelines for the EIV system.

Finding Text

Criteria Management is responsible for using the EIV system in accordance with the requirements of HUD handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Statement of Condition During the procedures applied to a statistically valid sample of 33 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding the use of the Enterprise Income Verification ("EIV") system. See details below: 1. Three instances where the Project did not obtain the required forms for new tenants from the EIV system within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System. 2. Four instances where the Project did not obtain the required forms from the EIV system before the required recertification date for existing tenants. Cause The project failed to follow the policies and procedures which have been established for proper use of the EIV system in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD Guidelines could result in errors in the rent subsidies paid by HUD. Questions Costs $0 Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the use of the EIV system is in accordance with guidelines specified by HUD. Finding Resolution Status: Completed Reporting Views of Responsible Officials The AUthority agrees with the finding. The Authority has previously established procedures that will be reinforced with our management and compliance personnel to ensure proper use of the EIV system.

Corrective Action Plan

We agree with the finding. We have previously established procedures that will be reinforced with our management and compliance personnel to ensure proper use of the EIV system. Training for all staff has occurred, and a HUD checklist has been implemented into our operations. The Executive Director will perform a 100% quality control review of the EIV reports until further notice.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 947446 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $9.40M
14.195 Section 8 Housing Assistance Payments Program $1.68M