FAC Explorer

Audit 403083

FY End
2025-12-31
Total Expended
$3.60M
Findings
9
Programs
3
Organization: Independent Housing I, Inc. - Independence House 023-Eh-020 (MA)
Year: 2025 Accepted: 2026-06-04
Auditor: BURKHART PIZZANELLI PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1216610 2025-001 Material Weakness Yes N
1216611 2025-002 Material Weakness Yes E
1216612 2025-003 Material Weakness Yes C
1216613 2025-001 Material Weakness Yes N
1216614 2025-002 Material Weakness Yes E
1216615 2025-003 Material Weakness Yes C
1216616 2025-001 Material Weakness Yes N
1216617 2025-002 Material Weakness Yes E
1216618 2025-003 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.000 FLEXIBLE SUBSIDY ASSISTANCE LOAN $2.39M Yes 3
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS $340,715 Yes 3
14.191 MULTIFAMILY HOUSING SERVICE COORDINATOR INCOME $37,406 Yes 0

Contacts

Name Title Type
EKE5FF28QQR7 Christine Thibodeau Auditee
4135254321 Julie Quink Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of Independent Housing I, Inc., HUD Project No. 023-SH-008-Seniority House, and is presented on the accrual basis of accounting. 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 Independent Housing I, Inc., HUD Project No. 023-SH-008-Seniority House, it is not intended to and does not present the financial position, change in net assets, or cash flows of Independent Housing I, Inc., HUD Project No. 023-SH-008-Seniority House.
The schedule of expenditures of federal awards is prepared 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. The Project has elected not to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project did not pass-through any federal funds to a subrecipient in 2025.
The Flexible Subsidy Assistance Loan is presented as of January 1, 2025. The Flexible Subsidy Assistance Loan balance as of December 31, 2025 was $2,392,748.

Finding Details

Finding 2025-001
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2025-001: Major Programs: Flexible Subsidy Assistance Loan and Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION One tenant file, out of thirteen files reviewed, had given the tenant a less than 30-day notice of tenant rent increase. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to give tenants a 30-day written notice of a rent increase. EFFECT OF CONDITION The tenant was given a 28-day written notice of rent increase. CONTEXT During audit fieldwork, thirteen tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the thirteen tenant files examined, the file for one tenant did not contain the written notice of rent increase within the 30-day requirement. CAUSE OF CONDITION Management was unable to provide a 30-day written notice of rent increase due to waiting for tenant paperwork to complete the recertification process. RECOMMENDATION The auditor recommends ensuring recertification paperwork is received timely to ensure a 30-day written notice of rent increase is provided to tenants. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be monitoring the recertification process to ensure a 30-day written notice of rent increase is provided to tenants.
Finding 2025-002
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding, 2025-002: Major Programs: Flexible Subsidy Assistance Loan and Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION One tenant file, out of thirteen files reviewed, was missing the tenant application. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to maintain the original application in the tenant files. EFFECT OF CONDITION The tenant application was not properly maintained in the tenant’s file. CONTEXT During audit fieldwork, thirteen tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the thirteen tenant files examined, the file for one tenant did not contain the application. CAUSE OF CONDITION Management archives the original documentation for long-term tenants and was not able to locate the folder at the time of inspection. RECOMMENDATION The auditor recommends the Project organize the archived tenant information and include original information in the active tenant files. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be organizing the archived tenant information and including the original information in the active tenant files. The Project will continue to train staff on the HUD Handbook requirements for the tenant files.
Finding 2025-003
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding, 2025-003: Major Programs: Flexible Subsidy Assistance Loan and Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION Payments on the Flexible Subsidy Assistance Loan are to be made from surplus cash. CRITERIA The Project’s Flexible Subsidy Assistance Loan requires payments of principal and interest to be made only from surplus cash. EFFECT OF CONDITION A loan payment with the Project’s surplus cash amount of $9,168 for the year ended December 31, 2024, was not made and was instead deposited into the Project’s residual receipts account. CONTEXT The Project’s surplus cash amount calculated for the year ended December 31, 2024, was required to be paid towards the Flexible Subsidy Assistance Loan. CAUSE OF CONDITION The required Flexible Subsidy Assistance Loan payment was not made with the surplus cash from the year ended December 31, 2024. The Project deposited the surplus cash of $9,168 into the residual receipts account due to a misunderstanding of the loan requirements. RECOMMENDATION The auditor recommends the Project contact HUD regarding the surplus cash that was deposited into the residual receipts account and not paid towards the loan. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be contacting HUD regarding the surplus cash that was deposited into the residual receipts account and not paid towards the loan.