Audit 403085

FY End

2025-12-31

Total Expended

$1.45M

Findings

2

Programs

1

Organization: Independent Housing I, Inc. - Independence House 023-Eh-020 (MA)

Year: 2025 Accepted: 2026-06-04

Auditor: BURKHART PIZZANELLI PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1216621	2025-001	Material Weakness	Yes	C
1216622	2025-002	Material Weakness	Yes	A

ALN	Program	Spent	Major	Findings
14.195	SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM	$1.45M	Yes	2

Contacts

Name	Title	Type
EKE5FF28QQR7	Christine Thibodeau	Auditee
4135254321	Julie Qunk	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-EH-020-Independence 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-EH-020-Independence 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-EH-020-Independence 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.

Finding Details

Finding 2025-001

FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION One tenant file, out of sixteen files reviewed, did not refund a security deposit within thirty days of the tenant moving out. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to refund the tenant’s security deposit within thirty days after the move out date. EFFECT OF CONDITION The tenant was not refunded their security deposit within thirty days of their move out. CONTEXT During audit fieldwork, sixteen tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria and HUD lease requirements. Of the sixteen tenant files examined, one tenant moved out during 2025. The tenant who moved out was not refunded their security deposit within thirty days of the move out date. CAUSE OF CONDITION Management mistakenly did not ensure that the security deposit was refunded within thirty days of the tenant moving out. RECOMMENDATION The auditor recommends implementing greater oversight over HUD tenant compliance and proper employee training on HUD move out procedures. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will monitor tenant move outs to ensure security deposits are refunded within the thirty day period specified by HUD and review the HUD move out procedures with their employees.

Finding 2025-002

FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-002: Major Program: Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION Management fees were overcharged by $4. CRITERIA HUD Handbook 4381.5 Revision 2 for HUD Subsidized Multifamily Housing Programs specifies the types of income that may be treated as income when determining the management fee allowed. EFFECT OF CONDITION Income was incorrectly included in the calculation of management fees causing the management fee to be overcharged for 2025. CONTEXT During audit fieldwork, management fees were tested for compliance with allowable management fees from project funds criteria. Ineligible cash receipts per HUD were included in the cash receipts for the management fee calculation resulting in a higher calculated management fee. CAUSE OF CONDITION Management mistakenly included income in the calculation that is not allowed per the HUD Handbook. RECOMMENDATION The auditor recommends management review the HUD Handbook on determining income included in the management fee calculation. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS Management will review the HUD Handbook on allowable income included in the management fee calculation and ensure monthly calculations be reviewed for out of the ordinary income sources.