U.S. Department of Housing and Urban Development (HUD) Onslow County Hospital Authority respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit period: October 01, 2021 through September 30, 2022 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. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development (HUD) 2022-001 Federal Housing Administration - Mortgage Insurance Hospitals -Assistance Listing No. 14.128 Recommendation: We recommend that management review funding requirements at the end of the year to ensure that the requirement to have a required balance of the Mortgage Reserve Fund is met by the Authority. Explanation of disagreement with audit finding: While we don't disagree with the finding, this was solely a function of market volatility in 2022. The balance was properly funded however negative market returns caused the fund to dip below the required balance as of yearend. In order to correct this, management made an additional contribution to increase the balance to the necessary amount. Action taken in response to finding: Management made an additional contribution to increase the balance to the necessary amount. Name(s) of the contact person(s) responsible for corrective action: Carl Biber, CFO Planned completion date for corrective action plan: December 31, 2022 Planned completion date for corrective action plan: December 31, 2022 If U.S. Department of Housing and Urban Development (HUD) has questions regarding this plan, please call Carl Biber at 910-577-2969.