Created : January 02, 2013 at 02:05 PM
July 24, 2012
Status:
Open Agenda
Receive Internal Audit Report - Review of the Palmview Elementary School Project #1131-23-01/P000207 New Food Service Multipurpose Building, Renovations and Site Improvements - April 2012.
This audit was performed at the request of Superintendent Robert W. Runcie, to review the Change Order listed in the January 18, 2012 School Board meeting, Agenda item JJ-8, for Palmview Elementary School, Item #015, in the amount of $254,700 for a 283 day delay that is being requested by the Construction Manager, (Hewett-Kier Construction, Inc.). The audit of the Palmview Elementary Change Order consisted of reviewing the Agreement Between Owner and Construction Manager, Professional Services Agreement, Board Agendas, Construction Meeting Minutes, emails, Consultant Reports, Policies & Procedures, project file documentation, site visits, interviews with District staff, Project Consultant (Architects), Construction Manager and various other individuals involved with the project. The objectives of our audit were to determine if the Construction Manager was entitled to a delay claim (compensation for Extended General Conditions) for 283 days at a cost of $254,700; to analyze the Change Order to determine if the number of days is reasonable, or if the Construction Manager is entitled to a different number of days, or if additional days should be granted without monetary compensation, to complete the project; and to provide management with recommendations to improve operations, based on our review of the Palmview Elementary Project.
It is the opinion of the Chief Auditor that the Palmview Elementary Project was not properly managed by the Construction Manager, Project Consultant or Facilities and Construction Management (F&CM) staff. The Office of the Chief Auditor, based on our review, recommends that F&CM deny any payment for delay claims (compensation for Extended General Conditions) for 283 days at a cost of $254,700. Subsequently, the Construction Manager is seeking an additional $99,050. We also recommend that F&CM should allow the Construction Manager 283 non-compensable days to complete the Palmview Elementary Project. We provided other recommendations to improve operations, based on our review.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee's June 21, 2012 meeting.
The source of funds to perform the Internal Audit Report was the General Fund budget allocation for the Office of the Chief Auditor. There is no additional financial impact to the school district.
Requested Action
Receive Internal Audit Report - Review of the Palmview Elementary School Project #1131-23-01/P000207 New Food Service Multipurpose Building, Renovations and Site Improvements ? April 2012.
Summary
This audit was performed at the request of Superintendent Robert W. Runcie, to review the Change Order listed in the January 18, 2012 School Board meeting, Agenda item JJ-8, for Palmview Elementary School, Item #015 in the amount of $254,700 for a 283 day delay that is being requested by the Construction Manager, (Hewett-Kier Construction, Inc.). The audit of the Palmview Elementary Change Order consisted of reviewing the Agreement Between Owner and Construction Manager, Professional Services Agreement, Board Agendas, Construction Meeting Minutes, emails, Consultant Reports, Policies & Procedures, project file documentation, site visits, interviews with District staff, Project Consultant (Architects), Construction Manager and various other individuals involved with the project. The objectives of our audit were to determine if the Construction Manager was entitled to a delay claim (compensation for Extended General Conditions) for 283 days at a cost of $254,700; to analyze the Change Order to determine if the number of days is reasonable, or if the Construction Manager is entitled to a different number of days, or if additional days should be granted without monetary compensation, to complete the project; and to provide management with recommendations to improve operations, based on our review of the Palmview Elementary Project.
It is the opinion of the Chief Auditor that the Palmview Elementary Project was not properly managed by the Construction Manager, Project Consultant or Facilities and Construction Management (F&CM) staff. The Office of the Chief Auditor, based on our review, recommends that F&CM deny any payment for delay claims (compensation for Extended General Conditions) for 283 days at a cost of $254,700. Subsequently, the Construction Manager is seeking an additional $99,050. We also recommend that F&CM should allow the Construction Manager 283 non-compensable days to complete the Palmview Elementary Project. We provided other recommendations to improve operations, based on our review.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee's June 21, 2012 meeting.
School Board Goals
| Goal 3 - All operations of the school system will demonstrate best practices while supporting student achievement. | ||
| Goal 4 - All stakeholders will work together to build a better school system. |
Financial Impact
The source of funds to perform the Internal Audit Report was the General Fund budget allocation for the Office of the Chief Auditor. There is no additional financial impact to the school district.
Source of Additional Information
Patrick Reilly 754 321-2400
Associated File Attachments
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Palmview Audit (Files) | |
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ExecutedARF (Files) |