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Construction risk management
Higher education internal audit back-to-basics video series
Nov 08, 2024 · Authored by Bob Zellmer
Discover the essentials of construction risk management in higher education.
In this video, Baker Tilly’s construction project audit specialist provides an in-depth overview of key risks, planning approaches, testing and reporting strategies that guide successful capital projects for colleges and universities.
The video highlights the following:
- Importance of construction audits: Construction audits are critical to identify and mitigate financial and operational risks associated with large capital projects on campus. Effective audits ensure accountability, transparency and contract compliance, which are vital to safeguarding institutional funds.
- Capital project risks: Capital projects, particularly large-scale ones, come with inherent risks, such as cost overruns, scheduling delays and undelivered scope. The video underscores that these risks can stem from inadequate project controls, arithmetic and billing errors, lack of cost transparency and insufficient monitoring by project managers or contractors.
- Audit engagement planning: Successful audits require thorough planning, which includes a risk assessment, contract review and clear communication with stakeholders. This ensures the audit is well-structured, adaptable and focused on the highest-risk areas.
- Benefits of construction audits: Construction audits ultimately provide institutions with the tools to strengthen project controls, reduce costs, enhance contract provisions and increase oversight on high-risk projects. Regular audits help foster a more rigorous project management approach that aligns with institutional policies and protects resources.
- Continuous improvement: Through identifying common errors and areas for improvement, construction audits offer insights that can be used to refine contract terms, improve documentation practices and reinforce that future projects benefit from lessons learned.
Presenter and subject matter specialist:
- Bob Zellmer, CCA, M.S.A., Senior Manager, Development and Community Advisory
Watch this 20-minute video for answers to these questions:
- Why perform a construction audit?
- What are the key benefits of performing a construction audit?
- What are the primary risks associated with capital construction projects?
- What are key audit areas to focus on during construction projects?
- What are the steps for engagement planning?
- What should institutions look out for in a construction contract review?
- How should an institution approach reporting on construction audit findings?
- What overall impact does a construction audit have on future capital projects?
Baker Tilly can help
Is your higher education institution prepared to manage the risks involved in your current or future capital projects? Baker Tilly can support with your next construction audits to enhance oversight, manage costs and ensure compliance. Contact us today to learn more.
Higher education internal audit back-to-basics
Catch up on the previous six videos in the series for insights on procurement risks, student accounts and financial aid, gifts and advancement, data analytics, HR and payroll compliance and cybersecurity.
Cybersecurity and IT risks
The sixth episode of our higher education internal audit video series discusses key IT risks and challenges and cybersecurity frameworks.
Data analytics: questions, challenges and the analysis process
The fourth episode of our internal audit back-to-basics video series examines higher education data analytics in internal audit.
Gifts and advancement
Third episode of our internal audit back-to-basics video series discusses higher education donations and the gift management lifecycle, highlighting key risks and best practices.
Navigating human resources and payroll compliance
Fifth episode of our internal audit series reviews key HR in higher education functions, highlighting risks and compliance challenges.
Procurement risks and controls
First video in Baker Tilly's internal audit series defines internal control and higher education procurement risks, while highlighting key components of the procurement cycle.
Student accounts and financial aid
The second episode of our higher education video series focuses on student accounts, highlighting key risks associated with financial aid and audit approach.