Finding 1167163 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2025-12-30

Audit: 378205

Organization: Ljr Corporation (RI)

Auditor: CBIZ CPAS PC

AI Summary

Core Issue: Monthly HUD-52670 forms were submitted without proper management review or approval.
Impacted Requirements: This violates Uniform Guidance (2 CFR 200.303) on internal controls for federal awards.
Recommended Follow-Up: Implement a review and approval process for all HUD-52670 forms prior to submission.

Finding Text

2025-003: Supportive Housing for Persons with Disabilities – AL #14.181 – Cash Management Criteria or Specific Requirement (including statutory, regulatory, or other citation) Uniform Guidance (2 CFR 200.303) requires organizations to establish effective internal controls over federal awards. Proper review and approval are key controls to prevent errors and misstatements. Condition Monthly HUD-52670 forms were submitted to HUD for housing assistance payment requests without evidence of review or approval by management. Cause The Corporation didn’t have adequate controls in place to ensure that monthly HUD-52670 forms were reviewed and approved by management. Effect or Potential Effect There is a risk of potential noncompliance with HUD and federal cash management requirements. Questioned Costs - None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that management implement a process for review and approval of all HUD-52670 forms before submission to HUD. Views of Responsible Officials See attached response for view of responsible officials and planned corrective actions.

Corrective Action Plan

2025-003 - Missing Evidence that Monthly HUD-52670 Forms are Reviewed Corrective Action: Findings were related to evidence missing that Monthly HUD-52670 forms are reviewed. Corrective action has been implemented in ensuring the check list was revised to ensure parties will review of the Monthly HUD-52670 Forms and sign off as evidence of review. Additional corrective action has been implemented in ensuring checklist form will be reviewed and initialed by another staff member so there will be a cross check. Controls continue and remain in place to assure compliance, including, but not limited to, centralization of files, improved orientation procedures and periodic internal reviews conducted by Finance staff. Assigned to: Kenneth P. Parent, Director of Residential Leasing

Other Findings in this Audit

1167158 2025-001

Material Weakness Repeat
1167159 2025-002

Material Weakness Repeat
1167160 2025-003

Material Weakness Repeat
1167161 2025-001

Material Weakness Repeat
1167162 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES	$72,867