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Home > Data Center > Audit > School Construction Audits
Updated 8/24/12...pg

School Construction Audits

Link to Department of Education Rules Chapter 61

(Major Capital School Construction Projects)

School Construction Audits

  1. When is a school construction project considered completed and ready to be audited?

    • A project is considered completed when:

      • all invoices have been paid;
      • all existing litigation/arbitration issues have been resolved;
      • all applicable arbitrage computations have been prepared by bond counsel, the school administrative unit auditor, or other authorized person; and,
      • no further financial transactions are anticipated.
      • Also, where required, certificates of occupancy shall have been obtained.
  2. How should the Department be notified that a project is ready to be audited?

    • Once a project is considered complete (see list above), the school administrative unit should contact Heather Neal for the forms and information to begin the final audit process.

  3. What should be done to prepare for the audit?

    • All records pertaining to the project should be made available for the Department auditor including:

      1. Paid vendor invoices and corresponding warrants
      2. Bank and investment statements
      3. Canceled checks
      4. General ledger & general journal
      5. Approved original “Moveable Equipment List”
      6. Approved “Additional Moveable Equipment List”
      7. Cost statement(s) of temporary borrowing
      8. Applicable Internal Revenue Service (IRS) tax forms for arbitrage computation(s) - Form 8038-T – Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate or a letter from the party preparing the computation that states no arbitrage rebate is due the IRS.
  4. The audit is complete but there are unspent bond proceeds.   Can the remaining funds be spent on the project?

    5. No further purchases from the construction account are allowed once the final audit is conducted.   Refer to the Department of Education Rules Chapter 61 "Rules for Major Capital School Construction Projects", Section 11(7) regarding disposition of unexpended bond proceeds.

  5. What happens to the interest that was earned on the investment of temporary borrowing and bond proceeds?

    School Administrative Units are required to return the State’s share of net interest income earned from investment of project funds to the Department.   Refer to Section 11 (6) of the Rules for Major Capital School Construction Projects regarding interest earned on investments.

 

Please direct any questions to:

Heather Neal or Stephanie Wright

Department of Education
23 State House Station, Augusta, Maine 04333
Phone: (207) 624-6863 or (207) 624-6865
Fax: (207) 624-6791