August 26, 2022 D?Ambra CPA 531 Harris Avenue Woonsocket, RI 02895 RE: Corrective Action Plan: HPPL Finding 2022-001: Federal program - Section 811: Criteria - HUD regulations require residual receipt escrow funds in excess of $250 per unit to be remitted to HUD upon expiration of the subsidy contract; Condition - the property's residual receipts liability for the prior year totaling $14,181 was not paid; Cause - management oversight; Recommendation - management remit to HUD the prior year residual receipts amount as required. In addition, the current year additional excess totaling $23,624 should also be remitted. Response: Management will remit to HUD the prior year's and current year's residual receipts amount. Finding 2022-002: Federal program - Section 811: Criteria - HUD regulations requires surplus cash be deposited within 90 days of year end; Condition - management deposited the prior year's surplus cash 28 days late; Cause - management oversight; Recommendation - management should deposit the surplus cash within the 90 day time period Response: Management will deposit future surplus cash in a timely manner. Corrective Action Plan: Management has adopted the attached internal control workflow to ensure that program requirements are more strictly adhered to. We have also expanded our finance department by 2 FTE?s in the past two years (including a new position of Financial Analyst/Asset Manager in July 2022) to ensure that we have proper staffing to monitor properties financial performance and compliance with program requirements. Responsible party: Frank Shea