Finding 396253 (2023-003)

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: One hundred and thirty-seven tenants Sample Size Information: Twenty tenants Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires timely verification of tenant’s current and initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: One tenant file did not contain verification of current income through the use of EIV reports. Cause: The Project did not perform and/or maintain the most current income verification of one tenant. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the required documentation is performed timely and maintained in the tenant files. Response Indicator: Agree. Completion Date: 03/17/2023 Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed to ensure EIV reports are pulled as required. Training has been conducted with managers on EIV reports and EIV requirements.