FAC Explorer

Audit 399435

FY End
2025-12-31
Total Expended
$7.93M
Findings
2
Programs
2
Organization: Victory Crest, Inc. (MD)
Year: 2025 Accepted: 2026-04-22
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208455 2025-001 Material Weakness Yes E
1208456 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $7.01M Yes 1
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $923,394 Yes 1

Contacts

Name Title Type
RCPGJMVN4H13 Sarah O'Rielly Auditee
3014936000 Russell Phillips Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Victory Crest, Inc. HUD Project No. 000-EE066, under programs of the federal government for the year ended December 31 , 2025. 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 Victory Crest, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Victory Crest, Inc. For the year ended December 31, 2025, no awards were passed through to sub-recipients.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in 0MB Circular A-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Victory Crest, Inc. has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The balance shown on the schedule of expenditures of federal awards relating to the capital advance consists of $6,719,600 expended in prior years. Section 202 capital advances need not be repaid as long as the owner continues to make the housing available to the low-income elderly for at least 40 years.
Victory Crest, Inc. has received a Prince George's County, Maryland loan under the HOME Investment Partnerships Program for $1 ,300,000. The loan balance outstanding at the beginning of the period is included in the federal expenditures presented in the Schedule. See Notes to the SEFA for table.

Finding Details

Finding 2025-001
Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with lease file testing, we noted 3 out of 10 tenant files did not utilize the Enterprise Income Verification (EIV) system timely. Cause The Project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A sample of 10 tenant files from a population of 58 were selected. We identified exceptions in 3 out of the 10 files tested. The sample is not a statistically valid sample. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In-process Views of Responsible Officials Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance department to ensure compliance.