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School Construction Final Compliance Review

Link to Major Capital School Construction

State Board of Education Chapter 61, Rules for Major Capital School Construction Projects

School Construction Final Compliance Review

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

    • 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.
      • Finally, when the SAU has received the project completion letter from the School Facilities Team.
  2. When will the final compliance review be scheduled?
    • Once a project is considered complete, the Fiscal Review and Compliance Team Supervisor, Heather Neal, will contact the SAU to schedule the final compliance review.

  3. What should be done to prepare for the final compliance review?
    • All records pertaining to the project should be made available for the Department Fiscal Review and Compliance Team including:

      1. Paid vendor invoices and corresponding warrants
      2. Bank and investment statements
      3. Canceled checks
      4. General ledger & general journal
      5. Cost statement(s) of temporary borrowing
      6. 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.
      7. Receipt of additional project funds, i.e. Maine Efficiency Grants (a.k.a MPUC Grants).
  4. The review is complete but there are unspent bond proceeds.   Can the remaining funds be spent on the project?
  5. No further expenditures from the construction account(s) are allowed once the SAU recieves the project completion letter. 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.

  6. 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.

4/14/14


Please direct any questions to:

DOE.Audit@maine.gov

Department of Education
23 State House Station, Augusta, Maine 04333
Phone: (207) 624-6790
Fax: (207) 624-6791