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PHS's are required to use HUD's Enterprise Income Verification (EIV) system in its entirety as a third party source to verify employment and income information, and to reduce administrative subsidy payments errors in accordance with HUD administrative guidance [24 CFR 5.23 3 (a)(2)] . HUD allows PHAs to use pay-stubs to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where the PHA does not determine it is necessary to obtain additional third-party data. When EIV is obtained and the family does not dispute the EIV employer data, SARA will use current tenant-provided documents to project annual income. When the tenant-provided documents are pay stubs, SARA will make every effort to obtain current and consecutive pay stubs dated within the last 60 days. SARA will obtain written and/or oral third-party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases: If EIV or other UIV data is not available, If the family disputes the accuracy of the EIV employer data, and/or If the PHA determines additional information is need. In such cases, SARA will review and analyze current data to anticipate annual income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how the PHA annualized projected income. When SARA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), SARA will review and analyze historical data for patterns of employment, paid benefits, and receipt of others income and use the results of this analysis to establish annual income. Known Changes in Income If SARA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12-month period. Example: An employer reports that afull-time employee who has been receiving $6/hour will begin to receive $6.25/hour in the eighth week after the effective date of the reexamination. In such a case SARA would calculate annual income as follows: ($6/hour X 40 hours X 7 weeks) + ($6.25 X 40 hours X 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases SARA will calculate annual income using current circumstances and then require an interim reexamination when the change actually occurs. This requirement will be imposed even if SAHA's policy in Chapter 11 does not require interim reexaminations for other types of changes. 2/25/13 Page 6-5