Finding Text
U.S. Department of Homeland Security Pass-through the Mississippi Emergency Management Agency Program Name: Disaster Grants – Public assistance (presidentially declared disaster) Program Assistance Listing Number: 97.036 Compliance Requirement: Procurement CRITERIA: Construction contracts utilizing the services of an architect require an Application and Certificate for Payment, as certified by the architect, prior to any payment by the school district for the cost of completed construction for the period covered specified in the Application and Certificate for Payment. The certification by the architect states that “the work covered by this Application and Certification for Payment has been completed in accordance with the contract documents…and that the current amount shown herein is now due.” This certification implies that the current payment request is correct and accurate. CONDITION: The school district received the Application and Certificate for Payment (Hunt School Project – Number 3) from the architect, which was dated September 28, 2023, for $395,773.62 and was subsequently properly paid by the school district to the construction company. The school district received the Application and Certificate for Payment (Hunt School Project – Number 4) from the architect dated October 25, 2023, for $794,583.62. Application Number 4 included, in error, the Application Number 3 amount of $395,773.62 which was previously paid by the school district. The school district subsequently made payment to the construction company for the total amount of Application Number 4 for $794,583.62. The Mississippi Emergency Management Agency (MEMA) detected the error and requested proper reimbursements be made by the school district to MEMA. Thus, the school district reimbursed MEMA their requested amount ($296,830.22) and the construction company properly reimbursed the school district its appropriate amount ($395,773.62). CAUSE OF CONDITION: This condition was an error by the architect in completing the Application and Certificate for Payment and the school district management for its failure to detect the error. EFFECT OF CONDITION: The effect of this condition resulted in the overpayment to the construction contractor and excess reimbursement to the school district by MEMA. QUESTIONED COST: None. REPEAT FINDING: Not a repeat finding. RECOMMENDATION: It is recommended that school district management remind the architect of his duties and responsibilities to remit correct and accurate Applications and Certificates for Payment. Furthermore, it is recommended that the school district management review the architect’s Application and Certificates for Payment and the accompanying schedule of values, to the extent practicable, to determine the accuracy of the documentation. VIEWS OF RESPONSIBLE OFFICIAL(S): In agreement. See the school district response in the Corrective Action Plan in this report.