Audit 12183

Title: LOAN PROGRAM Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Ken-Crest Housing DEL II, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Ken-Crest Housing DEL II, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Ken-Crest Housing DEL II, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Ken-Crest Housing Del II, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ken-Crest Housing DEL II, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in federal expenditures presented in the Schedule. Ken-Crest Housing DEL II, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 is $918,800.