EAGLE COURT APARTMENTS HUD PROJECT NO. 092-EE062 CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Eagle Court Apartments respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2022 The findings from the September 30, 2022 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 2022-001: SECTION 202, Assistance Listing Number 14.157 The Project's security deposit liability account was underfunded at September 30, 2022. 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 liabilty balance on a monthly basis. The finding was corrected in December 2022. If the Department of Housing and Urban Development has questions regarding this plan, please call Craig Ritter at 320-584-2423.