North Wing, Inc. 053-EE205

Statement of Condition: Surplus cash as of June 30, 2020 was not deposited into the Project's residual receipts account within 90 days after year end. Criteria: The Regulatory Agreement requires that the surplus cash be deposited into the Project's residual receipts account within 90 days of year end. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to verify that the surplus cash as of June 30, 2019 was deposited into the residual receipts account within 90 days of year end was performed. The deposit was made on January 27, 2020. Questioned Costs: N/A. Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. View's of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will provide additional oversight to ensure that the residual receipts deposit is made per regulatory guidelines.

North Wing, Inc. East 5th Street Winston-Salem, North Carolina 27101 CORRECTIVE ACTION PLAN September 28, 2020 U. S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303-2806 North Wing, Inc. respectfully submits the following Corrective Action Plan for the year ended June 30, 2020. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended June 30, 2020 The finding from the June 30, 2020 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Programs Audits Finding No. 2020-001: Supportive Housing for the Elderly (Section 202), CFDA #14.157 Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. Management's Response: Management acknowledges that the June 30, 2019 surplus cash was not deposited into the residual receipts account within 90 days of year-end. We will provide additional oversight to ensure that the residual receipts deposit is made per regulatory guidelines. If HUD has questions regarding this plan, please call Mr. John Nichols at (336) 765-3906. Sincerely yours, John Nichols Managing Agent North Carolina Housing Services and Management