August 26, 2022 D?Ambra CPA 531 Harris Avenue Woonsocket, RI 02895 RE: Corrective Action Plan: Russo Apartments Finding 2022-001: Federal program - Section 811: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - one month's deposit totaling $683 was not made during the year; Cause - the property is experiencing a cash flow problem and was unable to make the required deposit; Recommendation management should make every effort to deposit the monthly required amount to the reserve account. Response: Subsequent to year end management received a rent increase and will be able to deposit the shortfall amount to the reserve account. 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