Southtowns Record

Town of West Seneca - Capital Project Management (2019M-195)

Government
Town of West Seneca
Posted by publisher
Mar 6, 2020
Kind
State audit
Topics
Budget and taxes, Audits and oversight, Parks and recreation

Publisher's summary

The Board did not properly plan and manage the capital project and clearly inform taxpayers when the estimated cost and scope of the project changed. In addition, the Board was not fully transparent on the anticipated project costs. As a result, original estimates were $9.8 million and increased by more than $3.6 million after competitive bids were received. When inaccurate costs are included in project estimates, there is an increased risk that the Board may issue more debt than necessary to finance the project because funding is available to pay for costs that were not within the original project scope. Finally, Town officials did not ensure an itemized project budget outlining revenues and expenditures was maintained in the accounting records and periodically updated.

Original document

Text · page 2 of 14

Contents

Report Highlights .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1

Capital Project Management .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2

  How Should a Board Plan, Authorize and Monitor a Capital Project?.  . 2

  The Board Was Not Fully Transparent About the Project Scope
  and Budget. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2

  What Do We Recommend? . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7

Appendix A – Response From Town Officials .  .  .  .  .  .  .  .  .  .  .  .  .  . 8

Appendix B – Audit Methodology and Standards .  .  .  .  .  .  .  .  .  .  .  10

Appendix C – Resources and Services.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  11