Finding Text
Condition: Mary Lee Flagship (the Organization) did not consistently used the Enterprise Income Verification (EIV) system, as required by HUD. We noted three tenants file did not contain a timely run EIV report. Client had obtained and used third-party documentation of income and assets for the initial certification/recertifications. Criteria: Per 24 CFR 5.233 Mandated Use of HUD?s Enterprise Income Verification (EIV) System, entities administering assistance under Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) must use HUD?s EIV system in its entirety as a third-party source to verify tenant employment and income information during mandatory reexaminations or recertifications of family composition and income. Cause: Inconsistent monitoring of internal controls in place over use of EIV reports in recertifications and inadequate internal monitoring of tenant files noted during the current year. Effect: Failure to use the EIV system in its entirety may result in the imposition of sanctions and/or the assessment of disallowed costs associated with any resulting incorrect subsidy or tenant rent calculations, or both. Questioned costs: $-0- Context: We examined five tenant files of which two files contained relevant EIV reports and three files did not contain a timely run EIV report. Repeat Finding: No Recommendation: We recommend that an independent review of each tenant file to include examination of EIV reports be conducted at initial or recertification by a person not directly involved in the intake or recertification process. Any discrepancies noted in this internal file review could then be corrected in a timely manner. Management should ensure that internal control procedures over use of EIV reports in initial and recertification processes are strictly followed and required EIV reports and other supporting documentation is maintained in each tenant?s file.