Finding Text
Title and CFDA Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development: Supportive Housing for the Elderly (Section 202) Finding Resolution Status - In Process Information on Universe and Population Size - Tenant move-ins during 2022. Tenant move-ins totaled five for 2022. Sample Size Information - 10% of tenant move-ins were selected for testing. A sample of two tenant move-ins were selected for testing. Identification of Repeat Finding and Finding Reference Number - 2021-001 Criteria - Existing tenant searches are required to be run prior to move-in, and EIV tenant income reports are required to be run within 90 days after the move-in information is transmitted to TRACS to confirm/validate the background history and income reported by the household. Statement of Condition - During testing of eligibility, it was noted that the Corporation did not run the tenant income report within 90 days of move-in for one tenant and did not run the existing tenant search for one tenant, which are part of the EIV system requirements. Cause - The Corporation did not comply with HUD's tenant file and EIV compliance requirements under HUD Handbook 4350.3. Effect or Potential Effect - Income and subsidy status of tenants moving into the property were not confirmed/validated using EIV reports. Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - The Corporation agrees with the findings as reported. Context - During testing of compliance with eligibility regulations, two instances of noncompliance were noted out of a sample of two tenant files. Recommendation - The Corporation should implement internal controls to ensure compliance with tenant file and EIV compliance requirements under HUD Handbook 4350.3. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management believes adequate controls are in place to ensure substantial compliance. Training on move-in and EIV procedures is provided annually. Corrective action is to be taken when staff do not comply with move-in and EIV procedures. Response Indicator - Agree Completion Date - December 31, 2023 Response - The Corporation was not in compliance with move-in and EIV guidelines as of December 31, 2022, and management will follow HUD's guidelines regarding the use of the EIV system in future periods.