Finding Text
FINDING 2023-001 (CORRECTIVE ACTION COMPLETED)
Questioned Costs: Not quantifiable given the nature of the finding
Population Size: 24 monthly EIV reports
Sample Size: 24 monthly EIV reports
Noncompliance Information: 4 monthly EIV reports
Condition: The Organization did not retain a printed and dated copy of the Failed Verification and Failed EIV Prescreen reports for two out of twelve months of the year. This is a finding of noncompliance and a finding of significant deficiencies in internal control over this compliance area.
Criteria: HUD Handbook 4350.3 REV-1 requires that the Organization, on a monthly basis, use the Failed Verification and Failed EIV Prescreen reports from the EIV system. It also requires that the Organization print and retain these reports in a master file.
Cause: Management experienced technical difficulties while attempting to access the EIV system and did not obtain and print the reports accordingly.
Effect or Potential Effect: The Organization was not in compliance with the requirements of HUD, and the risk of not having timely subsidy-related information from the EIV system was increased. Accordingly, the risk of an improper housing assistance payment was potentially increased.
Recommendations (2023-001-a): We recommend that management reevaluate its system and procedures to ensure that the required reports are printed and retained on the required schedule with clear dates of printing, going forward.
View of Responsible Officials: Management concurs with this finding and agrees with the auditor’s recommendation. Management will reevaluate its system to ensure future compliance and considers corrective action to be completed.