Finding 963273 (2023-001)

-
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299143
Organization: Mhccc Housing CORP Iic (IL)

AI Summary

  • Core Issue: A required Existing Tenant Search through EIV was not completed for a new tenant before move-in due to a clerical error.
  • Impacted Requirements: HUD's Multifamily Occupancy Handbook mandates that EIV searches be conducted for all new tenants prior to their move-in.
  • Recommended Follow-Up: Management should implement a verification process for social security numbers entered into EIV to prevent future errors.

Finding Text

Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: According to Chapter 9 of the HUD Multifamily Occupancy Handbook, HUD requires an Existing Tenant Search through the Enterprise Income Verification System (EIV) be completed for all new tenants prior to move in. Condition: Management did not complete the search for a tenant prior to move-in. Cause: Due to a clerical error, an incorrect social security number was entered while running the EIV. Effect: The clerical error resulted in a search being run for an incorrect person and the new tenant did not have a search run prior to their move in. The Project's controls discovered the error the following month and the correct EIV search was performed. No exceptions were discovered through the subsequent search. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 1 of 1 new tenants during the year noting the EIV search was not run prior to move in. Recommendation: We recommend management verify the information entered into the EIV. Management's Response: Management acknowledges the error and will continue to verify the social security numbers being entered.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $61,403