Finding 403274 (2023-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-06-27

AI Summary

  • Core Issue: Tenant income verification was not properly documented for 3 out of 7 tenants due to lack of access to the EIV system.
  • Impacted Requirements: Compliance with HUD's EIV verification process and maintenance of tenant lease files were not consistently followed, risking eligibility errors.
  • Recommended Follow-Up: Establish and monitor procedures to ensure correct tenant eligibility determinations and proper lease file maintenance as per HUD guidelines.

Finding Text

Department of Housing and Urban Development Finding 2023-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review we noted the following deficiencies: 1 out of 1 move-in tenants and 2 out of 6 existing tenants tested did not have documentation in their lease file that their income was verified using HUD's Enterprise Income Verification (EIV). Criteria Management is required to use EIV as a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income, in accordance with 24 CFR 5.233 and administrative guidance issued by HUD. Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Access to the EIV system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of the Ocala HUD Project. This lack of access impacted FY 2022 and the early part of FY 2023. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E – Eligibility (UG) Finding Resolution Status: Resolved. Access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of this Ocala HUD Project. This lack of access impacted the early part of FY 2023. Reporting Views of Responsible Officials See comments under Finding Resolution Status.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

  • 403273 2023-002
    Material Weakness Repeat
  • 979715 2023-002
    Material Weakness Repeat
  • 979716 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.59M