Board Report: 2022-FMIC-B-002 February 2, 2022
The Board is planning and managing major renovations of all four buildings it owns. We have identified the Board's management of its physical infrastructure as a major management challenge since 2014. We conducted this audit to review the Board's contract modification process related to its renovation projects to ensure compliance with its relevant process, policy, and guidance.
The Board complied with its change order process by using contractors to mitigate schedule delays and financial risks associated with renovation projects. It also complied with policy requirements and generally complied with guidance related to its review process for renovation contract modifications. In 5 of the 48 instances we examined, the Board issued modifications without completing the proper forms or obtaining appropriate approvals. However, during our audit it created an electronic approval process to ensure the forms were created and routed to the correct approvers, and it designated a reviewer to confirm that each form was properly signed and approved before requesting a modification.
