Finding 42479 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-08-13
Audit: 39156
Organization: Berlin Retirement Homes, Inc. (MA)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: One tenant file was missing the required Enterprise Income Verification (EIV) report.
  • Impacted Requirements: Tenant files must be complete and maintained according to HUD standards.
  • Recommended Follow-Up: Ensure all required documentation is kept in tenant files and conduct regular reviews for completeness.

Finding Text

AL# 14.195 U.S. Department of Housing and Urban Development Questioned Cost: $0 Criteria ? Tenant file was missing the Enterprise Income Verification (EIV) system report. Condition ? For one file of the four tested, there was no EIV form maintained in the tenant file. Cause ? The entity switched management companies during the year and prior to the new management company the tenant files were inconsistently maintained causing this finding.Effects or Potential Effects ? Tenant files were not complete or maintained in accordance with HUD requirements. Auditor?s Recommendation ? The specific documentation require by HUD should be maintained in the tenant files and the files should be periodically reviewed for completeness. View of Responsible Officials ? Management agrees with the finding and has implemented a corrective action plan.

Corrective Action Plan

#2022-002 - Eligibility - Tenant File Documentation Description: Tenant file was missing documentation of the Enterprise Income Verification (EIV) system reports. Action Taken: This was the result of an error made by the previous management company whereby the tenant's name was spelled incorrectly. The system took time to be corrected for this issue and the EIV was properly obtained in 2023. Eastpoint Properties, Inc. maintains EIV for all tenants under the Section 8 Housing Assistance program.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 42478 2022-004
    Significant Deficiency
  • 42480 2022-003
    Significant Deficiency
  • 42481 2022-001
    Significant Deficiency
  • 618920 2022-004
    Significant Deficiency
  • 618921 2022-002
    Significant Deficiency
  • 618922 2022-003
    Significant Deficiency
  • 618923 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.56M
14.195 Section 8 Housing Assistance Payments Program $258,131