CORRECTIVE ACTION PLAN
Breakthrough Phase III, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023.
Purkey, Carter, Compton, Swann, & Carter, PLLC
PO. Box 727
Morristown, Tennessee 37815
Audit period: July 1, 2022 —June 30, 2023
The findings from the 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 AUDITS
FINDING NO. 2023-001: Late REAC submission for Section 811 Supportive Housing for Persons with Disabilities, ALN #14.181
Criteria: The Project is required to submit audited financial statements with the REAC system within 90 days after year end.
Cause of Condition: The Project did not have systems in place to submit the audited financial statements within the required 90 days.
Recommendation: Auditor recommends management implement systems to ensure audited financial statements are submitted to REAC as required by the U.S. Department of Housing and Urban Development
within 90 days after the fiscal year end.
Action Taken: Personnel at Breakthrough Corporation have contracted with an outside accounting firm to handle the bookkeeping and will ensure that the year end financial reports will be provided to necessary
third parties as soon as possible after the end of the fiscal year.