Finding 47878 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-05
Audit: 53714
Organization: 201 Thurbers Inc. (RI)

AI Summary

  • Core Issue: Tenant files lacked required EIV processing, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Compliance with HUD's 4350.3 Rev. 1 Handbook, specifically Chapter 9 on Enterprise Income Verification.
  • Recommended Follow-Up: Ensure EIV reports are run during annual certifications and securely stored in tenant files.

Finding Text

Finding No. 2022-001 - EIV not processed Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size Twenty-two (22) EIV reports not run for tenants Sample Size Information Three (3) EIV reports not run for tenants Identification of Repeat Finding and Finding Reference Number N/A Criteria The client files should reflect HUD?s Rules and Regulations set forth in the 4350.3 Rev. 1 HUD Multifamily Occupancy Handbook (the "Handbook"), Chapter 9, Enterprise Income Verification ("EIV"). Mandatory EIV applies to all programs covered by this Handbook listed in Chapter 1. Statement of Condition Tenant files were missing information and did not comply with HUD Rules and Regulations. Cause Management received information from the administrator of the HOME Program that it was not needed so they were confused as to the requirement. Effect or Potential Effect Since the property is involved with two different programs Management was confused and they did not realize they were out of compliance. Auditor Non-Compliance Code Z- Other Questioned Costs -0- There were no known questioned costs. Reporting Views of Responsible Officials FHA/Contract Number 016-EE-062 Questioned Costs $0 Context Income verification for the tenant files was not processed through the EIV system. Recommendation We recommend the client run tenant?s EIV reports during annual certifications and keep files in a separate secured place. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation Client files should reflect all HUD Rules and Regulations that pertain to the HUD program that is being administered. Response Indicator Agree Completion Date DATE Response Management agrees with eh finding and will run EIV reports during annual certifications.

Corrective Action Plan

Finding 2022-001 ? EIV not processed for tenants during annual recertification A. Comments on Finding and Recommendations Recommendation ? We recommend the client runs tenant?s EIV reports during annual certifications and keep files in a separate secured place. B. Actions Taken or Planned Auditee agrees with this finding. Going forward, we will run the EIV reports for tenants. C. Status of Corrective Action on Prior Findings

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance Program $3.15M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $155,489