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Capital Project Management How Should a Board Plan, Authorize and Monitor a Capital Project? A governing board is responsible for the oversight and management of capital projects, including ensuring that projects are properly planned and managed, funding is authorized and costs are kept within the approved budget. The board and town officials should monitor progress and implement necessary changes to ensure the project is completed in the most cost-effective manner.1 Proper planning of a capital project requires that the board have a thorough understanding of the project’s overall scope and estimated cost before authorizing the project. Initial estimated costs must be realistic so a board can plan financing and keep the taxpayers informed. When financing a project with debt, a board must adopt a bond resolution at the project’s inception that includes, among other things, a statement of specific objects or purposes or class of objects or purposes for which the obligations to be authorized by the resolution are to be issued and a statement of the estimated maximum cost and a plan of financing of the total cost. In lieu of this statement, the resolution may specify that such information has been set forth in a capital budget or in an appropriation for such specific or class of objects or purposes or in a previously adopted bond resolution. After adoption of a capital budget, the supervisor is responsible for properly recording the project budget and subsequent financial activities. The board should ensure that any changes to the project plan are within the project scope or premise of the initial proposal and update the corresponding budget. The board should ensure that all its actions and proceedings are documented in official records to ensure transparency to taxpayers. The board should monitor the status of the project by reviewing monthly financial reports that compare actual revenues and expenditures to the related budget. The Board Was Not Fully Transparent About the Project Scope and Budget The Board began planning a repair and maintenance project for the library in 2012, which expanded to a plan to construct a community center. According to the September 24, 2012 Board minutes, the Board requested the Town engineer2 to prepare architectural drawings and plans for the library as part of the overall concept plans for the site. In July 2014, the Board and engineer presented a plan to renovate the existing library and include a 10,000 square foot addition. The Board minutes indicated 1 Refer to our publication Capital Projects Fund available at www.osc.state.ny.us/localgov/pubs/lgmg/capital- projects-fund.pdf 2 The Town hired an outside engineer to serve as Town engineer. 2 Of f ic e of t he New York State Comptroller