FEDERAL AWARDS FINDING CORRECTIVE ACTION PLAN Year ended December 31, 2022 Finding 2022-003 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Special tests and provisions Questioned Costs: None Name of Contact Person and Title: Susie Kirker, Board Chair Criteria: Edgewater Estates did not maintain the replacement reserve funds in interest-bearing accounts in 2022. Condition and Context: The Project did not establish interest-bearing accounts for the replacement reserve funds as required by RD. Effect: RD projects are required to maintain interest bearing accounts for replacement reserve funds. Cause: The Project is not in compliance with RD regulations and procedures. Management Response: Management plans on establishing interest-bearing replacement reserve accounts in 2023. Status: In progress Anticipated Completion Date: Estimated 2023