Naomi and Sylvestor Smith Senior Living Center

Condition: The required Enterprise Income Verification (EIV) information was not properly documented in one of the tenant files. Criteria: According to HUD regulations, Public Housing Agencies (PHAs) are required to use the EIV system to verify the income and eligibility of tenants participating in HUD rental assistance programs. The EIV Income Report and EIV Summary Report must be included in the tenant file to ensure compliance with federal requirements. Cause: The absence of the EIV information in the tenant file was due to a lack of proper documentation and inadequate internal controls to ensure compliance with HUD requirements relating to complete and accurate tenant files. Effect: Without the proper EIV information, there is an increased risk of providing rental assistance to ineligible tenants, which could result in questioned costs and potential repayment of federal funds. Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required EIV reports are included in tenant files. View of Responsible Officials: Management agrees with the finding.