Finding 589021 (2022-002)

- Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-04-10

AI Summary

  • Core Issue: The Project failed to verify initial tenant income for four tenants and did not conduct a background check for a live-in aide.
  • Impacted Requirements: HUD regulations mandate timely income verification using EIV reports and background checks for live-in aides.
  • Recommended Follow-Up: Ensure timely income verification and background checks are completed before tenant move-in; compliance checks will be conducted periodically.

Finding Text

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001 Criteria: HUD regulation requires timely verification of tenant?s current and initial income through the use of Enterprise Income Verification (EIV) reports. In addition, live-in aides must pass a criminal background check. Statement of Condition: The Project did not perform and/or maintain the initial EIVs for four tenants, and a background check was not performed for a live-in aide. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD, and a background check was not performed for a live-in aide. 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 verify initial tenant income through the EIV system in a timely manner and ensure all required background checks are performed prior to a tenant moving in. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been retrained on procedures for using the EIV system to verify tenant income and to perform background checks timely. Compliance will conduct periodic checks to see if reports are pulled and maintained in the tenant file, as required.

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 $2.80M
14.157 Supportive Housing for the Elderly - Prac $280,929