Corrective Action Plan August 2, 2022 Hicks & Associates CPAs 1795 Alysheba Way, Ste 6206 Lexington, KY 40509 U.S. Department of Housing and Urban Development (HUD): Main Street Baptist Manor, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. The finding from the March 31, 2022 Schedule of Findings and Questioned Costs is discussed below: FINDING ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001 Reserve for Replacements Withdrawal Recommendation: The Project has not had any prior compliance issues with the Reserve for Replacements. However, we recommend that the Project monitor their spending of Reserve for Replacements disbursements closely and only use the funds for the HUD approved purposes. Action Taken: Management acknowledges and agrees with the finding and the Project paid back the unapproved monies withdrawn from the Reserve for Replacements on August 2, 2022. Management concludes that corrective action is not necessary and does not expect this situation to arise again in the future If HUD has questions regarding this plan, please call Jean Peyton at (859)255-3334. Sincerely, ________________________________________________ Jean Peyton, Regional Property Manager Main Street Baptist Manor, Inc.