Finding Text
Condition: Mary Lee Flagship (the Organization) did not consistently use the Enterprise Income
Verification (EIV) system, as required by HUD. We noted four tenants file did not contain a timely run
EIV report. Client had obtained and used third-party documentation of income and assets for the initial
certifications/recertifications.
Criteria: Per 24 CFR § 5.233 Mandated Use of HUD’s Enterprise Income Verification (EIV) System,
entities administering assistance under Section 202 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013) must use HUD’s EIV system in its entirety as a third-party source to verify
tenant employment and income information during mandatory reexaminations or recertifications of
family composition and income.
Cause: Inadequate monitoring of internal controls in place over use of EIV reports in recertifications
and inadequate internal monitoring of tenant files noted during the current year.
Effect: Failure to use the EIV system in its entirety may result in the imposition of sanctions and/or the
assessment of disallowed costs associated with any resulting incorrect subsidy or tenant rent
calculations, or both.
Questioned costs: $-0-
Context: We noted no timely run EIV reports in examination of four tenant files on two new tenants
and two continuing tenants. Repeat Finding: Yes
Recommendation: We recommend a second person in the housing office review and certify in writing
that the documentation for each initial certification or recertification is complete and in compliance
with HUD documentation requirements prior to admitting a new tenant and prior to each continuing
tenant’s annual recertification date going forward. Additionally, we recommend that an outside
housing consultant conduct a review of all current tenant files to ensure completeness and compliance
with HUD documentation requirements within the next 30 days and corrective actions, as needed, by
the Organization occur as soon as possible thereafter.
Reporting Views of Responsible Officials: Management agrees with the finding and commits to
following the provided recommendations.