A recent audit report has revealed significant shortcomings in the oversight of school construction projects by the Utah State Board of Education (USBE), raising concerns about the adherence to building codes and safety standards across the state’s school districts.
State auditors found that these issues stem from a lack of resources, insufficient staffing, and inadequate document management systems within the USBE.
The report, presented to the Legislative Audit Subcommittee, follows a previous internal audit conducted in November 2022, which flagged similar problems.
Utah Senate Minority Leader Luz Escamilla, D-Salt Lake City, articulated the seriousness of the findings, emphasizing the hours spent discussing building code requirements in the Legislature.
To investigate the compliance of school construction projects with building codes, the Legislative Auditor General engaged Building Code Solutions to review five moderately recent Utah school building projects.
The results were concerning: compliance with building codes proved inconsistent, with numerous safety issues and violations discovered by inspectors.
The report criticized USBE’s oversight as a mere “rubber stamp,” indicating that many construction projects were authorized without proper verification.
According to statutory requirements, schools need to submit a preconstruction checklist for USBE review before commencing construction.
However, the audit revealed that 87% of construction projects between 2017 and 2024 commenced without receiving a permit, and some projects did not obtain a permit at all.
School officials reported that USBE had not processed their preconstruction checklists in a timely manner and had largely failed to enforce compliance regarding these submissions.
Furthermore, auditors found that USBE could not verify whether required building inspections were taking place; it solely relied on the assurances provided by building officials.
Currently, USBE has only one school construction specialist responsible for overseeing all state projects, a role deemed inadequate given the extensive oversight needed.
The audit indicates that this single position is insufficient to meet statewide requirements, which underscores the limitations of USBE’s oversight capabilities.
There were also inconsistencies noted in the submission of monthly building inspection reports, which were often incomplete or not sent to USBE at all.
Despite conditions that should prompt enforcement actions, USBE has yet to assert these penalties to promote compliance.
Additionally, USBE failed to meet its legal obligation of providing annual training for Utah school building officials.
Instead, this responsibility was outsourced to the Utah Facilities Operation and Maintenance Association (UFOMA), primarily funded by private vendors and governed by school district facilities officials.
Auditors pointed out that USBE did not track how many officials attended UFOMA conferences, which raises questions about the effectiveness of this training.
The report also noted that financial reporting practices regarding school construction are inconsistent and unreliable, hindering the accurate determination of actual construction costs.
USBE reports annually on construction cost data, but auditors discovered that the reported figures rely on preconstruction estimates rather than actual expenditures, undermining their credibility.
Upon reviewing payment applications from the state’s 41 school districts for new builds since 2019, auditors collected around $2.1 billion reported across 54 construction projects.
However, the variability in how schools classify construction costs prevented the auditors from producing reliable metrics, such as cost per square foot.
The audit emphasized the necessity for a standardized reporting system to enhance transparency and accountability.
Moreover, independent inspectors documented various building code violations in newly constructed school buildings, including missing firewalls and hazards related to mechanical, plumbing, and electrical systems.
The report highlighted these code violations as serious safety concerns for both staff and students, stipulating that adherence to building codes is vital for adequately mitigating risks to safety and property.
Alarmingly, many school building officials appear to lack the necessary qualifications, with some improperly waiving building code requirements.
Out of the 41 school district building officials in the state, only five held recognized building code certification, reinforcing the audit’s concerns about inadequate oversight.
In reviewing procurement practices, the report flagged one unnamed school district for using “questionable” processes that suggested possible impropriety.
Utah law requires that all construction projects exceeding $80,000 undergo a competitive bidding process and be awarded to the lowest satisfactory bidder.
However, the unidentified district consistently collaborated with the same contractor across 18 projects since 2014, only issuing two bid solicitations in that time frame.
Compounding these concerns, the district reportedly bundled numerous projects together, a practice that is atypical for large construction undertakings.
Based on available documentation, auditors noted that the contractor seemed to offer their services at lower rates compared to other bidders; however, they were unable to validate this assertion fully due to incomplete records.
In one instance, the final project cost exceeded initial bids considerably, prompting concerns even though external factors like inflation often affect construction expenses.
Despite being unable to establish any illegal or biased procurement practices, the auditors found that the district violated state document retention policies on several projects due to what officials described as administrative errors.
To address these issues, auditors proposed several recommendations for improving USBE’s oversight role, including the possibility of assigning regulatory responsibility to a different agency altogether.
If USBE retains its oversight duties, suggested improvements included enforcing existing statutes related to building codes and clarifying expectations for schools.
In May, State Superintendent Sydnee Dickson acknowledged USBE’s awareness of the risks associated with school construction oversight following the internal audit conducted in 2022.
She indicated that the board had contemplated the subsequent report and its recommendations, promising to discuss the findings with board leadership by August 31.
Following this discussion, USBE plans to develop a timeline for implementing necessary changes.
Dickson emphasized that the proposed actions do not signify any objection to the recommendations but reflect the collaborative approach of USBE and the governing body in policy-making.
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