Memorandum

City of Lawrence

City Auditor

TO:	Mayor Amyx and members of the City Commission
FROM:	Michael Eglinski, City Auditor
DATE:	March 19, 2015
RE:	Revised McDonald & Associates audit report on infrastructure at Rock Chalk Park

McDonald & Associates revised their audit report on the infrastructure at Rock Chalk Park. They revised their report based on additional information the City provided, including additional information on expenditures related to the recreation center and concrete batch tickets.

McDonald & Associates’ report addresses two objectives:

• Whether the infrastructure construction work was delivered in accordance with the development agreement; and
• Whether the City’s expenditures for infrastructure (hard and soft costs) were in compliance with the development agreement.

Based on the additional information and additional audit work, McDonald & Associates changed their calculation of the amount of final payment from the City to $1,092,971.

McDonald & Associates did not revise any of the recommendations they made in their February 26, 2015, report. The recommendations remain:

1. Execute the Final Acceptance document as described in the agreement
2. Consider obtaining as-built drawings
3. Consider paying an amount up to the total described in the development agreement plus additive change orders
4. To improve transparency and accountability, require job cost accounting on future projects
5. Add specific audit language to construction contracts and examine all records providing cost and installed quantities
6. Take steps to assure contracts are fully understood and that task assignment is addressed
7. On future projects, gain assurance that all work is contracted