Finding 607159 (2022-002)

-
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-01

AI Summary

  • Core Issue: Eight tenants' income verification was not completed via EIV within the required 90 days after move-in.
  • Impacted Requirements: Failure to comply with HUD regulations may lead to disallowed costs and inability to confirm tenant eligibility.
  • Recommended Follow-Up: Ensure timely income verification through EIV and provide training for managers on running 90-day reports and setting up alerts.

Finding Text

FINDING No. 2022-002: Section 207/223(f) Mortgage Refinancing, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that new tenant?s income be reviewed via Electronic Income Verification (EIV) within 90 days after the move-in information is transmitted to Tenant Rental Assistance Certification System (TRACS) to confirm/validate the income reported by the household. Statement of Condition: The Project did not obtain income verification via EIV within 90 days after move-in for eight tenants. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD. Effect or Potential Effect: Unable to verify initial eligibility and cost of assistance 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 recommendation will be adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Training will be provided to all managers regarding the importance of running the EIV 90 day Income Reports on a timely basis. Will instruct managers on how to set up alerts to run 90- day reports on our software One Site.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.87M
14.195 Section 8 Housing Assistance Payments Program $358,682
14.191 Multifamily Housing Service Coordinators $991