Client strengthens its management of capital projects through construction audit

Our client’s need

An urban research university with a sprawling campus in a major metropolitan area was undertaking a multi-year project to renovate and expand its real estate. Construction consisted of multiple large-capital projects, as the campus encompasses numerous residence halls, multiple apartment buildings, and commercial real estate. The university asked Baker Tilly to audit its construction practices and provide recommendations to strengthen its management of capital projects.

Baker Tilly solution

Baker Tilly audited the university’s construction business practices surrounding larger capital projects as part of the scope of our internal audit activities. We reviewed four projects in various stages of construction to test whether payment applications and change orders were correctly calculated, supported, and invoiced, and complied with contract requirements. We also reviewed vendor invoices and contracts, insurance requirements, and the university’s bidding process for capital projects.

Results achieved

Through our testing and interviews with construction personnel, we were able to identify strengths and provide recommendations to enhance the university’s construction processes and controls.