Finding 969728 (2023-001)

Finding No. HUD 2023-1; Section 202 Capital Advance, CFDA 14.157 Statement of Condition In connection with our lease file testing, we noted that two out of five tenant files did not have an EIV run within 120 days of the annual recertification date. Criteria In accordance with HUD program guidelines under which the Project operates, the EIV is required to be run within 120 days of the annual recertification date. Context A sample of five tenant files were selected from a population of 42. We identified exceptions in two out of the five files tested. The sample was not statistically valid. Effect The Corporation could be required to concede rent to these tenants, as applicable in the individual circumstances. Cause Personnel responsible for tenant recertification failed to run EIVs up to 120 days prior to the effective date of the recertification. Repeat Finding This finding is not a repeat finding. Recommendation The Corporation should ensure that EIVs are run timely up to 120 days prior to the annual recertification date. Auditor Noncompliance Code: R. Section 8 program administration Finding Resolution Status: Resolved Views of Responsible Officials Management concurs with the finding and has communicated with the staff, the importance of timely EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with this requirement to ensure EIVs are run within an appropriate time frame.