Finding 498375 (2024-002)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-09-26
Audit: 321108
Auditor: D'ambra CPA

AI Summary

  • Core Issue: Tenant certifications for Section 8 housing had errors, including missing EIV forms and proof of exemptions.
  • Impacted Requirements: Compliance with HUD's occupancy handbook for accurate tenant certifications.
  • Recommended Follow-Up: Management should run initial EIV checks for new tenants and correct existing errors in tenant files.

Finding Text

Federal program - Section 8 housing assistance payments: Criteria - : The HUD occupancy handbook specified the form and content of the certifications; Condition: tenant certification contained errors including no initial EIV form completed (1 of 7 files tested) and no proof of elderly/disabled exemption qualification (1 of 7 files tested); Effect: The tenant’s and HUD share of rent may be incorrect; Cause: Management oversight. Recommendation: Management should ensure that the initial EIV is run for a new move in and correct the files in error. Response: Management will ensure the initial EIV’s are run in the future and will correct the files in error.

Corrective Action Plan

Conduct a detailed review of tenant certification files to identify errors, particularly regarding the initial EIV forms and elderly/disabled exemptions. Amend the certification files that contain errors (1 of 7 files tested with missing EIV forms and 1 of 7 with no proof of exemption). Ensure that all corrections are documented. Provide training to management and staff on the HUD occupancy handbook requirements and the importance of the initial EIV process. Develop a standard operating procedure (SOP) for handling tenant certifications and EIV forms. Implement a quality control process to verify the accuracy of tenant certifications moving forward. Schedule periodic audits of tenant files to ensure compliance with HUD regulations.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.33M
14.195 Section 8 Housing Assistance Payments Program $553,072
14.157 Supportive Housing for the Elderly $313,178
14.191 Multifamily Housing Service Coordinators $25,880