What Are Some Common Problems With Bond Spending?
There are several problems related to bond spending that can be categorized as follows:
Poor identification of bond projects that are reflected in the voter-approved Bond Measure.
- Projects are not included in the bond measure language.
- Projects identified are non-capital, that is, repairs or minor facilities upgrades.
Lack of resources to properly manage a bond project.
- No or limited facilities management personnel employed by the school district or community college in place. Facilities management personnel include project managers, construction and financial management.
- District organizational structure does not clearly define the duties, roles and responsibilities to execute a bond program effectively.
- Internal resources may not possess the skill set to define requirements for major construction projects adequately.
- Internal resources may not be knowledgeable of all statutory, regulatory, and contractual requirements, including requirements for performing annual financial and performance audits.
Poor internal processes and procedures to manage major bond programs.
- Procurement processes are not properly documented or followed.
- The district does not have an integrated system of processes and procedures to manage major capital and bond programs.
- Program management processes may not have been institutionalized within the district.
- Fiscal controls for bond management may not be comprehensive which can put the district at risk for overspending on bond projects.
- No risk management process in place.
