Finding 618472 (2022-002)

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Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-01
Audit: 44087
Organization: Edward M. Marx Apartments, Inc. (FL)

AI Summary

  • Core Issue: One tenant file lacked required EIV documentation, and another tenant moved in without completing the screening process.
  • Impacted Requirements: HUD regulations mandate timely income verification and criminal background checks before tenant acceptance.
  • Recommended Follow-Up: Implement training and procedures to ensure timely EIV verification and thorough tenant screening moving forward.

Finding Text

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Thirty-three tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires timely verification of tenant?s income through the use of Enterprise Verification (EIV) reports with the corresponding documentation maintained and that criminal background checks be performed prior to tenant acceptance. Statement of Condition: Of the tenant files selected, one tenant file did not have an EIV for recertification documentation maintained and one tenant moved in prior to completing the tenant screening process. Cause: The Project did not perform and/or maintain the recertification EIV and did not perform tenant screening in a timely manner. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the Project verifies tenant income through the EIV system in a timely manner and maintain all required documentation and perform background checks prior to tenant acceptance. Response Indicator: Agree. Completion Date: 3/31/2022 Response: Training classes are planned and will be conducted on running EIV reports and performing tenant background checks. In addition, tenant files will be selected for review, at random, to ensure these items are completed in a timely manner.

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 $4.70M
14.239 Home Investment Partnerships Program $397,105
14.157 Supportive Housing for the Elderly- Project Rental Assistance Contracts $282,252
14.218 Community Development Block Grants/entitlement Grants $215,395