Finding 581310 (2023-002)

Significant Deficiency Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2023
Accepted
2023-12-15
Audit: 7016
Organization: Mayfield Manor II (FL)

AI Summary

  • Core Issue: The project failed to verify initial income for nine tenants and did not conduct annual inspections for one tenant, violating HUD regulations.
  • Impacted Requirements: Timely verification of income through EIV reports and annual unit inspections are mandatory for maintaining tenant eligibility documentation.
  • Recommended Follow-Up: Management must ensure EIV income reports are reviewed promptly and maintain a checklist for annual inspections, with alerts set up for reminders.

Finding Text

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, finding 2022-001. Criteria: HUD regulations require timely verification of initial income through the use of Enterprise Income Verification (EIV) reports and annual unit inspections performed in a timely manner and the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV for nine tenants or perform an annual unit inspection for one tenant. Cause: The manager did not maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance, residency may be disallowed. Unable to determine and assess whether the property has sustained any damages that require repairs. 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: Management should verify initial tenant income through the EIV system in a timely manner and perform annual unit inspections and maintain all required documentation in the tenant files. Response Indicator: Agree. Completion Date: 03/31/2024 Response: Managers have been trained that EIV Income Reports must be pulled timely, reviewed, and action taken, if needed. They have also been instructed to maintain a checklist to ensure unit inspections are done annually. Alerts have been turned on in One Site to remind managers to pull EIV 90- day reports.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

  • 4867 2023-001
    Material Weakness
  • 4868 2023-002
    Significant Deficiency Repeat
  • 581309 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $4.27M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract (prac) $187,540