Finding 559946 (2024-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-05-08

AI Summary

  • Core Issue: One Section 8 unit did not have the required EIV report run before tenant move-in, leading to noncompliance with HUD guidelines.
  • Impacted Requirements: Tenant lease files must comply with HUD Chapter 3, which mandates EIV reports be obtained prior to move-in and during annual recertifications.
  • Recommended Follow-Up: Management should review and improve procedures to ensure all EIV reports are completed as per HAP contract and HUD guidelines.

Finding Text

Finding 2024-01 Information on Universe Population Size: 46 Section 8 Units Sample Size Information: 5 Section 8 Units Noncompliance Information: 1 Section 8 Unit Statement of Condition: During the audit of tenant files, we noted that the required Enterprise Income Verification (EIV) Existing Tenant Search report was not run prior to tenant move-in in October 2024. As a result, lease files were not maintained in accordance with the Section 8 Housing Assistance Payment (HAP) contract/HUD guidelines. Criteria: Under the HAP contract, the tenant lease files are required to be maintained in accordance with HUD Chapter 3 and HUD guidelines, which includes that EIV reports and forms be obtained prior to move-in and annually upon tenant recertification. Effect: Management is not in compliance with the terms of the Section 8 HAP contract. Cause: Staff oversight. Recommendation 2024-01: We recommend that management review procedures to ensure that the tenant lease files and EIV reports are completed in accordance with the HAP contract/HUD guidelines. Management’s Comments/Status: Agreed. The required EIV report was run in November 2024 for the tenant move-in in October 2024. Management is currently re-training the staff to ensure that going forward all required EIV reports (move-in, recertifications, monthly, quarterly) are prepared in accordance with HUD’s requirements.

Corrective Action Plan

Management’s Comments/Status: Agreed. The required EIV report was run in November 2024 for the tenant move-in in October 2024. Management is currently re-training the staff to ensure that going forward all required EIV reports (move-in, recertifications, monthly, quarterly) are prepared in accordance with HUD’s requirements.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1136388 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $2.28M