Finding Text
FINDING NO. 2022-002: INEFFECTIVE OVERSIGHT AND OPERATION OF INTERNAL CONTROLS OVER COMPLIANCE BY MANAGEMENT Volunteer Homes for Elderly, Inc.?s managers are not keeping EIV data as required by HUD. After being informed by the management agent to destroy EIV data that is greater than three years after tenancy, managers proceeded to destroy EIV data before the retention period expired. CRITERIA: According to HUD Handbook 4350.3, owners must retain EIV data in the tenant file for the term of tenancy plus three years. Once retention period expires, owners must dispose of EIV data in proper manner. The requirements of EIV are included in chapter 9 of the HUD handbook. CAUSE OF CONDITION: The managers are not following requirements for EIV data pursuant to the HUD Handbook 4350.3. RECOMMENDATION: Auditor recommends management agent provide additional training to managers regarding retention period of EIV data and put proper controls in place to ensure the managers are complying with HUD requirements.