6. Discrepancy Analysis

Once the income discrepancy calculations are completed, EIV analyzes the results to determine whether an Income Discrepancy Report should be generated. The analysis compares the results to a pre-defined EIV system value – Discrepancy Cutoff.

The Discrepancy Cutoff variable establishes the monetary value that the calculated discrepancy must exceed in order for the household to be included on the Income Discrepancy Report. By default, this value is set to $2,400. This means that the discrepancy between the actual annual income value and the projected income must be at least $2,400 or greater in order for a discrepancy report to be generated. (The $2,400 is based on the requirement that tenants must report to the O/A when the family’s income cumulatively increases by $200 or more per month – see Paragraph 7-10.A and the HUD Model Leases in Appendix 4 of Handbook 4350.3 REV-1.)

For example, if the projected income for a household was $10,000 but the actual income was $14,000, the difference of $4,000 is greater than the established cutoff value of $2,400, qualifying it to appear on the report. Conversely, if the projected income for a household was $10,000 but the actual income was $12,000, the difference of $2,000 is less than that of the established cutoff value of $2,400, disqualifying it from appearing on the report.

The Discrepancy Analysis section of the Income Discrepancy Report provides results of the income analysis process. It provides actual and annualized last quarter data. There is a column for each type of data – Actual and Annualized Last Quarter Data.

• Reported Annual Wages and Benefits from EIV Data – This field identifies the actual income reported to EIV for the designated period of Income for Discrepancy Analysis.

• Amount of Annual Income Discrepancy – This field identifies the value of the discrepancy in the annual income that caused the household to be included in the report data. Negative currency values are represented in parentheses. For example, -$800 is represented as ($800). When this value caused the household to be included on the report, it appears in a bold typeface.

• Amount of Monthly Income Discrepancy – This field identifies the value of the discrepancy in the monthly income that caused the household to be included in the report data. Negative currency values are represented in parentheses. For example, -$800 is represented as ($800). When this value causes the household to be included on the report, it appears in a bold typeface.

• Percentage of Income Discrepancy – This field identifies the percentage by which the threshold cutoff value has been exceeded for this household.

HUD Occupancy Handbook Exhibit 9-7

8/13

4

Exhibit 9-7

4350.3 REV-1

Negative percentage values are represented in parentheses. For example, - 75% is represented as (75%).