THE MEN'S CENTER, INCORPORATEDNon-Profit

Finding #2020-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Housing and Urban Development Passed through Harris County, Assistance Listing #14.228 Community Development Block Grant/State?s Program and Non-Entitlement Grants in Hawaii ? Disaster Recovery Program Grantor number: P2012-0028 Criteria: Special Tests and Provisions ? Recenter shall include in its construction contracts subject to the Davis-Bacon Act, a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the Department of Labor wage rate requirements. This includes a requirement for the contractor or subcontractor to submit weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Additionally, contractors or subcontractors with contracts greater than $100,000 are required to submit monthly section 3 utilization plans. Condition and context: In our testing of 6 contracts and 17 weekly pay periods, we noted that 3 contractors had submitted weekly certified payroll reports after the due date. In total this resulted in 10 late filings of weekly payroll reports. Additionally, 2 of 4 contractors with contracts greater than $100,000 did not submit their section 3 utilization plan for the month tested. There does not appear to be a formal process in place to ensure that these reports are being submitted on a timely basis. Cause: Policies and procedures are not sufficient to ensure that contractors are filing the necessary payroll reports and section 3 utilization plans in a timely manner. Repeat of finding #2019-001. Effect: Failure to file certified payroll reports or section 3 utilization plans in a timely manner could result in those costs being deemed unallowable by the grantor. Questioned costs: Unknown Recommendation: Implement a system to verify that contractors are submitting certified payroll reports and section 3 utilization plans in a timely manner. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2020-002 ? Other Noncompliance Applicable federal program: All federal programs Criteria: Special Tests and Provisions ? Pursuant to Subpart F of the Uniform Guidance, guidelines require recipients to submit the Single Audit reporting package no more than 30 days after the auditor submits its report or nine months after the final day of the audit period, whichever comes first. Condition and context: Recenter failed to file the 2020 Single Audit reporting package by the required due date. Cause: There was an issue related to finalization of the construction project, which resulted in the delayed completion of the current year audit. Effect: Recenter could experience a potential interruption of funding due to untimely reporting. Recommendation: Implement policies and procedures to facilitate timely completion of the audit and submission of all required reports. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2019-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Housing and Urban Development Passed through Harris County, CFDA #14.228 Community Development Block Grant/State?s Program and Non-Entitlement Grants in Hawaii ? Disaster Recovery Program Grantor number: P2012-0028 Criteria: Other Compliance ? Recenter shall include in their construction contracts subject to the Davis-Bacon Act, a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the Department of Labor wage rate requirements. This includes a requirement for the contractor or subcontractor to submit weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Effective internal controls include monitoring of contractors and subcontractors to ensure that they are filing weekly certified payroll reports in a timely manner. Management is responsible for having an internal control system in place to ensure that certified payroll reports are filed in accordance with program requirements. Condition and context: In our testing of 16 contracts, we noted that 11 contractors had submitted certified payroll reports after the due date. In total this resulted in 66 late filings. There does not appear to be a formal process in place to ensure that these reports are being submitted on a timely basis. Cause: Policies and procedures are not sufficient to ensure that contractors are filing the necessary reports in a timely manner. Effect: Failure to file certified payroll reports in a timely manner could result in those costs being deemed unallowable by the grantor. Questioned costs: Unknown Recommendation: Implement a system to verify that contractors are submitting certified payroll reports in a timely manner. Views of responsible officials and planned corrective actions: The construction project manager, The Mathis Group, was responsible for reviewing weekly submissions and ensuring that the contractors met this requirement. Each late filing was noted and multiple requests were made each time a late filing occurred. In order to encourage compliance, payments to the contractor were not released until all required certified payrolls associated with that payment request had been submitted and approved by the sub-grantors. However, the contractor consistently argued that it was impossible to comply with the deadlines of this requirement. Due to the nature of the construction project, it was not possible to switch contractors. The project reached substantial completion in August of 2020.