THE SENIOR HOUSING CORPARTION OF EAST HADDAM, INC. CORRECTIVE ACTION PLAN March 4, 2023 Federal Audit Clearinghouse 1201 East 10th Street Jefferson, Indiana 47132 Acadia Housing, Inc. d/b/a Riverside Village (the Project) respectfully submits the following Corrective Action Plan for the year ended October 31, 2022. Hoyt, Filippetti & Malaghan, LLC 1041 Poquonnock Road Groton, Connecticut 06340 Audit Period: Year ended October 31, 2022 The findings from the October 31, 2022 Schedule of Federal Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2022-001 BOARD MEETINGS Criteria: Board of directors should convene to fulfil their fiduciary duties and provide governance to the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors are not providing oversight of the management company and financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management?s Views and Corrective Action Plan: The board has agreed to a minimum of two board meetings each year and any additional meetings on an as needed basis. 2022-002 RESERVE ACCOUNT FUNDING Grantor: U.S. Department of Agriculture Award Name: Rural Rental Housing Loans Award Year: 2022 Award Numbers: Various CFDA Number: 10.415 Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account If you have any questions regarding this plan, please contact Matthew Scibek at 860-398-5425, or matt@westfordmgt.com.