Finding Text
Finding # 2024-001
Federal Grantor: U.S. Department of Housing and Urban Development
AL # / Program : 14.157 - Supportive Housing for Elderly
Type of Finding: Federal Award Finding
Finding Resolution Status: Resolved
Information on Universe Population Size: The project consists of 60 rental units.
Sample size information: Sample size totaled 6 rental units.
Criteria: HUD Handbook 4350.3, Rev-1, Chg.4, Chapter 9, 9-5 through 9-9 A-C, requires owners/agents to use the Enterprise Income Verification (EIV) system in its entirety and maintain reports in tenant files to demonstrate owners/agents compliance with EIV usage.
Statement of Condition: For 3 of the 6 lease files tested, the lease files were missing the required EIV reports.
Cause: The project did not have access to the EIV system during fiscal year which prevented it from complying with HUD regulations to use the EIV system in its entirety.
Effect or Potential Effect: The project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA.
Auditor Non-Compliance Code: E - Eligibility
Questioned Costs: N/A
Reporting Views of Responsible Officials: As of November 27, 2024, access to the EIV system has been restored and will be used in its entirety.
Context: The project did not have access to the EIV system during fiscal year which prevented it from complying with HUD regulations to use the EIV system in its entirety.
Recommendations: We recommend the Owner review controls over the maintenance of EIV system access and use of the EIV system to ensure compliance with HUD regulations.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: As of November 27, 2024, access to the EIV system has been restored and will be used in its entirety.
Response Indicator: Agree
Completion Date: 27-Nov-24