FAC Explorer

Audit 28339

FY End
2022-12-31
Total Expended
$827,099
Findings
4
Programs
1
Organization: Kenwood Properties, Inc. 075-Hd068-Wdd (WI)
Year: 2022 Accepted: 2023-04-10
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37928 2022-001 Significant Deficiency - N
37929 2022-001 Significant Deficiency - N
614370 2022-001 Significant Deficiency - N
614371 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $37,099 Yes 1

Contacts

Name Title Type
CPVWZ9KDDCJ4 Fred Hebert Auditee
6082548353 John Hemming, CPA Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Kenwood Properties, Inc. under programs of the federal government for the year ended December, 31, 2022. 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 Kenwood Properties, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kenwood Properties, Inc.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The balance of the capital advance from the Department of Housing and Urban Development at December 31, 2022 was $790,000.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Kenwood Properties, Inc. under programs of the federal government for the year ended December, 31, 2022. 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 Kenwood Properties, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kenwood Properties, Inc.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Kenwood Properties, Inc. did not use any subrecipients.

Finding Details

Finding 2022-001
Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Diabilities Questioned Costs: None How the questioned costs were computed: N/A Condition: Surplus cash generated at the end of fiscal year December 31, 2021 in the amount of $4,812 was not remitted to the residual receipts account within the required timeframe. The replacement reserve account requires a monthly deposit of $500 to be made. At the end of fiscal year December 31, 2022, no deposits were made. Criteria: Owners are required to remit any surplus cash generated at the end of the fiscal year to the residual receipt account within the required timeframe and to make required monthly deposits into the replacement reserve account. Cause: Due to turnover within the company, the requirement to remit the surplus cash to the residual receipts account and make the required monthly replacement reserve deposits were overlooked. Effect: The surplus cash remittance to the residual receipts account and required reserve deposits were not made in accordance with HUD guidelines. Recommendation: Policies and procedures should be reviewed to ensure timely remittance of surplus cash into the residual receipts account within the required timeframes and monthly required replacement reserve deposits are made. Views of Responsible Officials and Planned Corrective Actions: Kenwood Properties, Inc. agrees with the finding and review policies and procedures to ensure timely remittance and required deposits are made.
Finding 2022-001
Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Diabilities Questioned Costs: None How the questioned costs were computed: N/A Condition: Surplus cash generated at the end of fiscal year December 31, 2021 in the amount of $4,812 was not remitted to the residual receipts account within the required timeframe. The replacement reserve account requires a monthly deposit of $500 to be made. At the end of fiscal year December 31, 2022, no deposits were made. Criteria: Owners are required to remit any surplus cash generated at the end of the fiscal year to the residual receipt account within the required timeframe and to make required monthly deposits into the replacement reserve account. Cause: Due to turnover within the company, the requirement to remit the surplus cash to the residual receipts account and make the required monthly replacement reserve deposits were overlooked. Effect: The surplus cash remittance to the residual receipts account and required reserve deposits were not made in accordance with HUD guidelines. Recommendation: Policies and procedures should be reviewed to ensure timely remittance of surplus cash into the residual receipts account within the required timeframes and monthly required replacement reserve deposits are made. Views of Responsible Officials and Planned Corrective Actions: Kenwood Properties, Inc. agrees with the finding and review policies and procedures to ensure timely remittance and required deposits are made.
Finding 2022-001
Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Diabilities Questioned Costs: None How the questioned costs were computed: N/A Condition: Surplus cash generated at the end of fiscal year December 31, 2021 in the amount of $4,812 was not remitted to the residual receipts account within the required timeframe. The replacement reserve account requires a monthly deposit of $500 to be made. At the end of fiscal year December 31, 2022, no deposits were made. Criteria: Owners are required to remit any surplus cash generated at the end of the fiscal year to the residual receipt account within the required timeframe and to make required monthly deposits into the replacement reserve account. Cause: Due to turnover within the company, the requirement to remit the surplus cash to the residual receipts account and make the required monthly replacement reserve deposits were overlooked. Effect: The surplus cash remittance to the residual receipts account and required reserve deposits were not made in accordance with HUD guidelines. Recommendation: Policies and procedures should be reviewed to ensure timely remittance of surplus cash into the residual receipts account within the required timeframes and monthly required replacement reserve deposits are made. Views of Responsible Officials and Planned Corrective Actions: Kenwood Properties, Inc. agrees with the finding and review policies and procedures to ensure timely remittance and required deposits are made.
Finding 2022-001
Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Diabilities Questioned Costs: None How the questioned costs were computed: N/A Condition: Surplus cash generated at the end of fiscal year December 31, 2021 in the amount of $4,812 was not remitted to the residual receipts account within the required timeframe. The replacement reserve account requires a monthly deposit of $500 to be made. At the end of fiscal year December 31, 2022, no deposits were made. Criteria: Owners are required to remit any surplus cash generated at the end of the fiscal year to the residual receipt account within the required timeframe and to make required monthly deposits into the replacement reserve account. Cause: Due to turnover within the company, the requirement to remit the surplus cash to the residual receipts account and make the required monthly replacement reserve deposits were overlooked. Effect: The surplus cash remittance to the residual receipts account and required reserve deposits were not made in accordance with HUD guidelines. Recommendation: Policies and procedures should be reviewed to ensure timely remittance of surplus cash into the residual receipts account within the required timeframes and monthly required replacement reserve deposits are made. Views of Responsible Officials and Planned Corrective Actions: Kenwood Properties, Inc. agrees with the finding and review policies and procedures to ensure timely remittance and required deposits are made.