FAC Explorer

Audit 376898

FY End
2025-06-30
Total Expended
$1.06M
Findings
2
Programs
1
Organization: Ken-Crest Housing De 2003, Inc. (PA)
Year: 2025 Accepted: 2025-12-22
Auditor: WITHUM SMITH + BROWN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1166102 2025-001 Material Weakness Yes N
1166103 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $100,385 Yes 1

Contacts

Name Title Type
QRMTFBFV1177 Arthur Anderson Auditee
6108259360 Adam Watson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Ken-Crest Housing DE 2003, Inc. under programs of the federal government for the year ended June 30, 2024. 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 PA DE 2003, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Ken-Crest Housing PA DE 2003, Inc.
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.
Ken-Crest Housing DE 2003, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Ken-Crest Housing DE 2003, 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 PA DE 2003, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2025 is $964000.

Finding Details

Finding 2025-001
Finding 2025-001: Special Tests and Provisions – Project Funds Information on the Federal Program: U.S. Housing of Urban Development (“HUD”) -14.181 Supportive Housing for Persons with Disabilities; FAIN #032HD030; July 1, 2024 – June 30, 2025. Finding Type: Significant Deficiency Criteria: In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. Condition and Context: During our testing, we noted that the project fund account used by Ken-Crest Housing DE 2003, Inc. was not an interest-bearing account. Cause: Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by Ken-Crest Housing DE 2003, Inc.’s management. Effect or Potential Effect: Project funds would not earn interest in accordance with HUD requirements. Questioned Costs: None Recommendation: We recommend that Ken-Crest Housing DE 2003, Inc. utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although Ken-Crest Housing DE 2003, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all project funds were transferred into that account. Planned Implementation Date of Corrective Action: July 2025 Person Responsible for Corrective Action: Chief Financial Officer