FAC Explorer

Finding 58753 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-05-29
Audit: 54820
Organization: Sycamore Square Housing Corporation (CA)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: A new tenant's lease file lacked proof that the required EIV check was completed within 90 days of move-in.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 for tenant eligibility and lease file maintenance was not consistently followed.
  • Recommended Follow-Up: Management should implement and monitor procedures to ensure EIV checks are conducted on time and lease files are maintained properly.

Finding Text

Finding No. 2022-002; Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review we noted 1 out of 1 new tenants tested did not have documentation in their lease file that the move-in EIV was run within 90 days of move-in. Cause Management?s policies with respect to the determination of tenant eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs No questioned costs identified. Context In connection with the procedures applied to a sample of 1 tenant, there was one instance where management did not run the EIV within the 90 day window. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to insure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R ? Section 8 program administration. Finding Resolution Status: Resolved. The Project ran the EIV on January 13, 2023. Views of Responsible Officials Management concurs that the move-in EIV was not run within 90 days of move in and that this is not in compliance with the requirement to maintain HUD tenant lease files per the HUD Handbook 4350.3. Management staff have been trained on the requirements to run EIV reports in accordance with the HUD Handbook. Staff have included a note to file explaining the deficiency in the tenant file and will ensure that EIV reports are ran as required moving forward.

Corrective Action Plan

2. Finding 2022-002 a. Comments on the Finding and Each Recommendation The auditee is to provide a statement of concurrence or nonconcurrence with each finding. The auditee is also to provide a statement of agreement or disagreement with each recommendation in the finding. Management concurs that the move-in EIV was not run within 90 days of move in and that this is no in compliance with the requirement to maintain HUD tenant lease files per the HUD Handbook 4350.3. b. Action(s) Taken or Planned on the Finding The auditee should detail actions taken or planned to correct each finding identified in the report. Appropriate documentation should be submitted for actions taken. For planned actions, the auditee should provide the projected date for completion of all required action. The auditee should provide information on the task(s), subtask(s) and projected completion date(s) for the correction of the deficient condition and repayment of funds if appropriate. Officials responsible for completing the proposed task(s) and subtask(s) should also be identified. If the auditee believes a corrective action is not required, a statement describing the reasons should be included. Management staff have been trained on the requirements to run EIV reports in accordance with the HUD Handbook. Staff have included a note to file explaining the deficiency in the tenant file and will ensure that EIV reports are ran as required moving forward.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 58752 2022-001
    Significant Deficiency
  • 635194 2022-001
    Significant Deficiency
  • 635195 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $788,173