Created : November 03, 2013 at 08:47 PM
November 05, 2013
Status:
Open Agenda
Receive Internal Audit Report ? Current Status Update of the Review of the Palmview Elementary School Project #1131-23-01/P000207 New Food Service Multipurpose Building, Renovations and Site Improvements.
This Current Status Update of the Review of the Palmview Elementary School Project No. 1131-23-01/P000207 New Food Service Building, Renovations and Site Improvements issued in June 2012, was performed in accordance with the 2013-2014 Audit Plan. The report consisted of a review of the Current Status responses from management and analysis of the supporting documentation associated with their reported actions to date.
The Current Status contains updates from the OF&C on our recommendations from the original audit. Of the original four (4) findings, it is the opinion of the Office of the Chief Auditor (OCA) that two findings are open, (#1 and #4), Finding #2 is incomplete, and Finding #3 is implemented, but not in use.
In Finding #1 in the original Audit Report, OCA recommended that OF&C should deny the Construction Manager, Hewett-Kier any payment for delay claims (compensation for Extended General Conditions). In this Current Status, we documented that OF&C has prepared a proposed Construction Change Order-Item # 027 which is intended to seek School Board approval to pay the Construction Manager, Hewett-Kier $298,495.00 as compensation for 285 days of extended General Conditions. OCA disagrees with these payments for reasons documented in the original Audit Report and the Current Status Matrix. As OF&C is intent on paying the Construction Manager and OCA maintains that no payment for delay claims should be made, it was the opinion of OCA that the resolution and disposition of this issue needed to be made by the Office of the General Counsel.
Subsequent to the completion of this Current Status Report, the Office of the General Counsel was requested to provide a legal opinion regarding the Construction Manager?s delay claims and associated compensation. On September 27, 2013 the OCA received the Office of the General Counsel's Legal Opinion Memorandum that affirmed the OCA's recommendation to deny the Construction Manager's delay claims and associated compensation.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee?s October 10, 2013 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 - Current Status Update of the Review of the Palmview Elementary School Project #1131-23-01/P000207 New Food Service Multipurpose Building, Renovations and Site Improvements.
Summary
This Current Status Update of the Review of the Palmview Elementary School Project No. 1131-23-01/P000207 New Food Service Building, Renovations and Site Improvements issued in June 2012, was performed in accordance with the 2013-2014 Audit Plan. The report consisted of a review of the Current Status responses from management and analysis of the supporting documentation associated with their reported actions to date.
The Current Status contains updates from the OF&C on our recommendations from the original audit. Of the original four (4) findings, it is the opinion of the Office of the Chief Auditor (OCA) that two findings are open, (#1 and #4), Finding #2 is incomplete, and Finding #3 is implemented, but not in use.
In Finding #1 in the original Audit Report, OCA recommended that OF&C should deny the Construction Manager, Hewett-Kier any payment for delay claims (compensation for Extended General Conditions). In this Current Status, we documented that OF&C has prepared a proposed Construction Change Order-Item # 027 which is intended to seek School Board approval to pay the Construction Manager, Hewett-Kier $298,495.00 as compensation for 285 days of extended General Conditions. OCA disagrees with these payments for reasons documented in the original Audit Report and the Current Status Matrix. As OF&C is intent on paying the Construction Manager and OCA maintains that no payment for delay claims should be made, it was the opinion of OCA that the resolution and disposition of this issue needed to be made by the Office of the General Counsel.
Subsequent to the completion of this Current Status Report, the Office of the General Counsel was requested to provide a legal opinion regarding the Construction Manager?s delay claims and associated compensation. On September 27, 2013 the OCA received the Office of the General Counsel's Legal Opinion Memorandum that affirmed the OCA's recommendation to deny the Construction Manager's delay claims and associated compensation.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee?s October 10, 2013 meeting.
School Board Goals
| Goal 3: Effective Communication | ||
| Goal 2: Continuous Improvement |
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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CS Palmview Audit (Files) |