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CBOC 0903 Summary of Report * Performance Audit Timing - This past summer we reviewed the District Measure F Construction Bond Program Implementation Plan and Procedures. We will perform Proposition 39 performance audit testing in October, 2003 and anticipate delivery of our performance audit report in November, 2003. * District Construction Program Procedures - The District Construction Bond Program procedures are not ready for use. Procedure areas that should be given immediate focus and attention include reporting (to the CBOC and the District Board of Trustees), professional service contract pricing and change order controls. More specifics on the information that will be provided in program reports is suggested (summaries by school, cost impact of change orders, contingency budgets and use, etc.). In the negotiation of professional service contracts, the steps that will be taken to negotiate these contracts should be specified. A description of actions to be taken in the review of change order submissions should be indicated (assessment of responsibility for the changes, validation of quantities and amounts charged etc.). I would add our voice to comments that have come from the CBOC Policies and Procedures Subcom-mittee. A consistent format that provides narrative descriptions and identifies roles and responsibilities for specific actions should be used. While the flow charts can be helpful in supporting the narratives, specific actions should be delineated. Non-procedural documents should be removed (example contracts etc.). Our suggestion is that the District's use what it has already pulled together and focus on completing a few key areas. The District should work collaboratively with the Subcommittee to develop an accepted format. The District should complete the procedures for these key areas and work collaboratively with the Subcommittee to get their support for draft procedures as they are completed. * Implementation Plan - I agree with the comments that were expressed in the meeting. Any new information that surfaces over the next month should be included in the plan. My additional comment is that soft cost amounts should be clearly identified by project, school and for the program as a whole. A summary that shows contingency, management fees and other relevant soft costs would be very helpful in assessing the overall program cost estimates. From an overall financial and budgetary management perspective, this information is of specific value. * Program Staffing and Delivery Model - We plan to look at Program staffing in the context of the methods used to deliver the District Construction Bond Program. Appropriate Program staffing is needed for deployment of efficient, effective and compliant Program controls. We have seen various models used in the deployment of construction program staffing. Contractors, in-house personnel, or a combination of contactors and in-house personnel have been used to effectively staff construction programs. At this point, we have not reached any definitive conclusions regarding this important matter. Our Construction Program Performance Audit Report will address this area. |