RSM audit tells Marion schools to tighten construction procurement and asset data

RSM’s public follow-up audit, presented at the Marion County School Board’s Dec. 18 work session, flagged four moderate observations in the district’s planning, design and construction processes and recommended steps to reduce risk and improve oversight.

Claire Ewing, managing director with RSM, opened the briefing by framing the firm’s risk ratings and follow-up scope. RSM said it closed four stimulus-related observations during this round but found remaining issues in timekeeping and construction procurement. RSM then turned to a planning, design and construction audit that sampled recent projects and closeouts.

“The first one is related to contract cost support documentation,” RSM’s presenter said, reporting that district construction contracts sometimes lack a clear connection between negotiated rates and the supporting documentation for actual costs. RSM offered two remediation strategies: continue requiring construction managers to support billed costs and validate them through audits at the end of projects, or amend contracts to state negotiated rates clearly so billing is plainly auditable. RSM said district management intends a hybrid approach — periodic audits at closeout plus clearer amendments going forward.

RSM also recommended replacing manual spreadsheets and paper-based tracking with construction project-management or program-management software that would centralize vendor uploads, document review workflows and allow retrospective data mining on change orders and trends. “At the click of a button, you could say what are all the change orders that have been processed in the last 90 days?” RSM said.

On asset maintenance, RSM urged the district to supplement informal conversations with data-driven reporting from its maintenance management system so replacement-versus-repair decisions are based on cost, frequency and remaining useful life. Finally, RSM noted the current decentralized construction procurement practice — with facilities, purchasing and legal all involved — would benefit from clearer task assignments and the contract-manager position the district is creating that would sit in procurement but have a direct line to facilities.

Board members welcomed the recommendations and praised the partnership. Board Member Thoreau said the audit helps the community show how projects are monitored, and the board agreed to a follow-up internal audit focused on the half-cent sales-tax implementation this spring. RSM said it will present another update around May.