Our client’s need
A county agency engaged Baker Tilly to perform a review of the project controls related to a facility upgrade. The facility services more than 35,000 residences and businesses, and operates 24-hours a day, 365 days a year. The Design/Build contract had unique requirements, such as shared savings and direct material procurement, and was one of the largest projects in the history of the agency.
Baker Tilly solution
Our review included analyzing payment applications, reviewing the shared savings calculation, performing a contract risk assessment, and assessing project controls. Additionally, we interviewed agency personnel, personnel from the prime contractor, and the subcontractor who created the share savings model.
Our review identified gaps within the accounting responsibilities and provided recommendations to strengthen the project controls, namely monitoring contract compliance, for the remaining duration of the project. We also identified potential activities within the shared savings calculation that warranted additional negotiation with the prime contractor.