EIN: 232703540
UEI: M9JAYG3EJZU5
Audited by: Withum Smith + Brown
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 22, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 22, 2026 (68 days ago).
What is a management decision? →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 #032HD002; 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 Del II, 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 Del II, 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 Del II, Inc. utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although Ken-Crest Housing Del II, 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
Show full finding ▾Hide full finding ▴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 #032HD002; 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 Del II, 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 Del II, 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 Del II, Inc. utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although Ken-Crest Housing Del II, 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
Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DEL II, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting firm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Significant Deficiency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, 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. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.
2024-001
FAC accepted this audit on November 1, 2024 — management decision was due May 1, 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 the Corporation 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 the Corporation’s management. Effect or Potential Effect: Project funds would not earn interest in accordance with HUD requirements. Questioned Costs: None Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although the Corporation does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action. Planned Implementation Date of Corrective Action: December 2024 Person Responsible for Corrective Action: Chief Financial Officer
Show full finding ▾Hide full finding ▴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 the Corporation 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 the Corporation’s management. Effect or Potential Effect: Project funds would not earn interest in accordance with HUD requirements. Questioned Costs: None Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although the Corporation does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action. Planned Implementation Date of Corrective Action: December 2024 Person Responsible for Corrective Action: Chief Financial Officer
Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.
FAC accepted this audit on January 18, 2024 — management decision was due July 18, 2024.
FAC accepted this audit on November 3, 2022 — management decision was due May 3, 2023.
FAC accepted this audit on October 31, 2021 — management decision was due May 1, 2022.
FAC accepted this audit on November 5, 2020 — management decision was due May 5, 2021.
FAC accepted this audit on January 21, 2020 — management decision was due July 21, 2020.
FAC accepted this audit on January 24, 2019 — management decision was due July 24, 2019.
FAC accepted this audit on October 19, 2017 — management decision was due April 19, 2018.
FAC accepted this audit on October 24, 2016 — management decision was due April 24, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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