School Construction Project Closure and Audit Procedures
What records should be maintained for the audit of a school construction project?
Refer to FORM SCG-3075 Audit Requirements Bulletin for a complete list of documents. The following list provides a summary of some of the documents required:
- General Ledger
- Invoices/Final Invoices for all contractors for the project
- Bid documents
- Bid tabulation sheets
- Code sheets showing “Building Area for Grant Calculation”
- Schedule of project costs
- Enrollment projections
- All change orders
- All change order summary sheets
- Contracts for all contractors involved in the project
- Building committee meeting minutes
How long does the audit process take?
Answer: The length of the audit process varies from one project to another. However, the process could be delayed if the requested documents are not provided in a timely manner.
What happens if the requested documentation cannot be provided?
Answer: The documentation requested by the auditor is meant to aid the auditor in the determination of whether the construction project was performed in compliance with the relevant state laws and regulations. Lack of supportive documents may cause the related costs to be considered ineligible for grant reimbursement, and therefore resulting in an audit finding.
What happens if the negative grant effects of ineligible costs found during an audit exceeds the remaining grant payment?
Answer: Audit findings could likely change the calculated grant amount. Once the audit findings have been factored into the grant calculation it is possible that the result could be a negative balance. If that is the case, the Local Education Agency (LEA) would be responsible for repayment to the State.