Created : January 02, 2013 at 02:05 PM
July 24, 2012
Status:
Open Agenda
Receive External Audit Report - Operational Review of Facilities and Construction Management - McGladrey LLP.
At the request of the Superintendent and in accordance with the Office of the Chief Auditor's (OCA) Audit Plan for the 2011-2012 fiscal year, McGladrey, LLP was hired to conduct an Operational Review of the Facilities and Construction Management Division (F&CM). This report included specific control and compliance, testing procedures for the Parkway Middle School and Walker Elementary School projects. The report identified nine sub-processes and areas, which revealed a general lack of consistency between the F&CM's current policies and best practices in the industry. They identified thirty-six observations related to best practices and seven compliance observations. The severity of each type of observation and the potential impact on the operations were rated. Items were rated as High, Moderate or Low risk. In addition, they identified potential cost avoidance practices, provided exhibits to assist F&CM's implementation of best practice recommendations to help reduce the gap between industry best practices and current policy. In conjunction with McGladrey's compliance and best practice procedures, they reviewed various reports issued by the OCA and noted that the OCA had previously documented various observations similar to those identified in this report. It was also recommended that F&CM utilize its internal resources. Specifically, F&CM can improve the effectiveness of communications and increased cost savings measures by involving the Design Services and Contracts/Cost Estimating Departments more frequently.
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 this Operational Review was the General Fund budget allocation for the Office of the Chief Auditor. The Audit fee charged by McGladrey, LLC for performing the audit was $99,950.
Requested Action
Receive External Audit Report - Operational Review of Facilities and Construction Management - McGladrey LLP.
Summary
At the request of the Superintendent and in accordance with the Office of the Chief Auditor's (OCA) Audit Plan for the 2011-2012 fiscal year, McGladrey, LLP was hired to conduct an Operational Review of the Facilities and Construction Management Division (F&CM). This report included specific control and compliance, testing procedures for the Parkway Middle School and Walker Elementary School projects. The report identified nine sub-processes and areas, which revealed a general lack of consistency between the F&CM?s current policies and best practices in the industry. They identified thirty-six observations related to best practices and seven compliance observations. The severity of each type of observation and the potential impact on the operations were rated. Items were rated as High, Moderate or Low risk. In addition, they identified potential cost avoidance practices, provided exhibits to assist F&CM's implementation of best practice recommendations to help reduce the gap between industry best practices and current policy. In conjunction with McGladrey's compliance and best practice procedures, they reviewed various reports issued by the OCA and noted that the OCA had previously documented various observations similar to those identified in this report. It was also recommended that F&CM utilize its internal resources. Specifically, F&CM can improve the effectiveness of communications and increased cost savings measures by involving the Design Services and Contracts/Cost Estimating Departments more frequently.
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 Four: Innovation (2008-2011) | ||
| Goal Three: Safety (2008-2011) |
Financial Impact
The source of funds to perform this Operational Review was the General Fund budget allocation for the Office of the Chief Auditor. The Audit fee charged by McGladrey, LLC for performing the audit was $99,950.
Source of Additional Information
Patrick Reilly 754 321-2400
Associated File Attachments
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McGladrey Oper Rev (Files) | |
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ExecutedARF (Files) |