DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NHHI - Mankato Barrier Free Housing Corporation respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd., 1000 Shelard Parkway, Suite 110, Minneapolis, MN 55426. Audit Period: September 30, 2023. The findings from the September 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project's security deposit liability account was underfunded at September 30, 2023. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Action Taken: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liability balance on a monthly basis. The finding was corrected in October 2023. If the Department of Housing and Urban Development has questions regarding this plan, please call JoAnn Rademacher at 651-639-9799.