Finding 480285 (2023-001)

Finding Reference Number: 2023-01 Federal Program: Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Criteria: Tenant income is to be reconciled to Enterprise Income Verification system (EIV) Statement of Condition: EIV reports were being run as mandated although proper reconciliation between tenant declared income and the EIV reports were not being conducted for all tenants. This resulted in incorrect calculation of subsidies and over collection by Council. Cause: Management oversight Effect or Potential Effect: Noncompliance and over-collection of subsidies Auditor Noncompliance Code: E – Eligibility Questioned Costs: $59,671 of subsidies were returned to HUD Reporting Views of Responsible Officials: Management has implemented proper internal controls to ensure compliance with EIV requirements. Recommendation: Management should use EIV system in its entirety to verify tenant employment and income during recertifications and calculate subsidy payments correctly. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding. Management has implemented proper internal controls to assure the EIV reports are used properly. Response Indicator: Agree Completion Date: 7/31/2023 Response: Management has implemented proper internal controls to ensure compliance with EIV requirements.