Finding Text
Criteria: Per the HUD Handbook 4350.3: Occupancy Requirement of Subsidized Per Chapter 9. Enterprise Income Verification (EIV), the EIV is used for verifying the employment and income of tenants and for reducing administrative and subsidy errors. Per the EIV system instructions, the EIV is to be run within 90 days of move-in and any needed actions within 30 days of the report.
Condition: The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
Effect: The Project did not follow the EIV system directive to obtain EIV within 90 days of move-in.
Cause: Due to the turnover of the Management Agent and Property Management Staff, obtaining EIV was performed within the 90 days of move-in.
Context: A sample of four tenant files was selected for Eligibility Testing in which four of four tenants selected had instances of not obtaining EIV report within 90 days of move-in.
Recommendation: We recommend that the Project follow the HUD directive in obtaining the EIV within 90 days of move-in.
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.