Finding 580768 (2023-001)

-
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-12-14

AI Summary

  • Core Issue: One tenant's initial income verification was not completed within the required 90 days, violating HUD regulations.
  • Impacted Requirements: Failure to maintain proper documentation affects tenant eligibility verification and could lead to disallowed assistance costs.
  • Recommended Follow-Up: Implement timely procedures for initial eligibility checks and maintain necessary documentation; completion expected by 03/31/2024.

Finding Text

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Twenty tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of tenant’s initial income through Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV report for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation in accordance with HUD regulations. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that initial eligibility procedures are performed in a timely manner and that the corresponding documentation is maintained. Response Indicator: Agree. Completion Date: 03/31/2024 Response: The former community manager did not run an EIV timely as per HUD guidelines. We have provided staff with additional HUD training and we have set up automatic alerts to remind managers to pull the 90 day EIV Income Report based on individual tenant move in dates.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $1.08M
14.157 Supportive Housing for the Elderly - Project Rental Asssitance Contracts (prac) $125,323