Finding Text
Finding # 2024-010
Federal Grantor: U.S. Department of Housing and Urban Development
AL # / Program : 14.181 - Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award - Eligibility
Finding Resolution Status: In Process
Information on Universe Population Size: Lincoln Street Housing, Inc. owns a project with a total of 10 units of supportive housing for persons with disabilities in Fremont.
Sample size information: Audit procedures were performed on 3 tenant lease files.
Criteria: HUD Handbook 4350.3, Rev-1, Chg.4, Chapter 9, 9-9 A-C, requires owners/agents to maintain Enterprise Income Verification (EIV) reports in tenant files to demonstrate owners/agents compliance with EIV usage.
Statement of Condition / Context: Of the 3 files test, all 3 files were missing the required EIV reports and it was unclear if the EIV reports were ran at the time of recertification as required by HUD Handbooks and Regulations.
Cause: Internal control over compliance with program compliance requirements are not operating effectively.
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: R - Section 8 Program Administration
Questioned Costs: No questioned costs associated with this finding.
Recommendations: We recommend the Owner/Agent review controls over compliance with the EIV reporting requirements.
Response Indicator: Agree
Completion Date: 6/30/2025
Reporting Views of Responsible Officials and Planned Corrective Action: EIV reports for LSH were inconsistently run in FY 2024. Moving forward, EIV reports will be run monthly and during annual and interim recertifications. The Portfolio Assistant will complete Rules of Behavior for Use of EIV certification and will be responsible for completing this task, effective March 1, 2025.