Module 8 – Completing the Project

Steps to Project Closeout and Final Payment


As the project nears completion, and the contractor is finishing the punchlist and demobilizing the site, the District should begin the process that will result in the MSBA making the final payment to the District.  Once a project reaches substantial completion, the MSBA will send the District an email describing the closeout process and a Closeout Questionnaire for the District to complete to help us better understand the status of the project; the email will also include an Index of Final Closeout Audit Material required for the closeout of the specific project. The required closeout forms (see below) differ slightly based on the type of project (new construction, Accelerated Repair Program, Science Lab Initiative, etc.) but the closeout process shares most of the same steps.

The following issues are an integral part of the process of project closeout:
  • Confirm that all executed Project Funding Agreement (PFA) amendments have been entered in Pro-Pay system
  • Confirm that the Project Budget in the Pro-Pay system matches the approved budget in the MSBA Agreement (Attachment A) 
  • Confirm that copies of all contract amendments (OPM, Designer, General Contractor) have been forwarded to the MSBA.
  • Submit final change orders, Budget Revision Requests (BRRs) for all soft and hard costs and reconcile the use of Guaranteed Maximum Price (GMP) contingency (if applicable to the project) with the MSBA 
  • Confirm that the submittals to achieve CHPS/LEED certification are in process (if applicable to the project) and will be completed by the due date for district submittal of final costs and audit checklist
  • Confirm that the 10 month Commissioning site visit (if applicable to the project) will be completed and the Commissioning Certificate signed by the due date for district submittal of final costs and audit checklist.
Once all of the project costs have been paid by the District, the District should submit its Final Request for Payment Reimbursement via the Pro-Pay system.  After the District has submitted its Final Request for Payment Reimbursement and all the items identified on the Index of Final Closeout (see below), the MSBA can initiate the Draft Audit Report and send it to the District for its consideration.  The MSBA performs the final audit to determine final total grant amounts and make the final payment.
 
To properly prepare for Final Closeout Audit, the MSBA has set deadlines for receipt of all required closeout documentation and completion of all required closeout activities.  For consideration of final audit at an upcoming Board meeting, all submissions must be received by the MSBA, by the deadlines noted in the table below.  Incomplete submissions will be returned to the District, and will not initiate the Final Closeout Audit process.  Please note that final audits may take time and require additional materials and reconciliation of costs between the district and the MSBA.  Submission by the deadline does not guarantee a district that its final audit will be presented at that board meeting.

Target Board Data Table

The MSBA will make the final 5% grant payment after the District has accepted the Draft Audit Report; the District has completed and submitted the required closeout documents; and the MSBA Board has approved the final Total Facilities Grant for the project.  
 

Closeout Audit Forms*

A checklist of documents and activities required before the MSBA can commence the Final Closeout Audit process can be found here: Checklist of Final Closeout Audit Required Documents & Activities.  This index is sent to the district when its project reaches substantial completion.  The MSBA may require additional project-specific documentation beyond that listed in the checklist.  To properly prepare for Final Closeout Audit, the MSBA has set deadlines for receipt of all require Closeout activities.  Incomplete submissions will be returned to the District, and will not initiate the Final Closeout Audit process.   


The MSBA forms may be accessed via the links below.  These forms are designed to be filled in electronically, printed, signed and submitted to the MSBA as email attachments or via the US Mail.

*Additional forms may be sent to the District for completion of the Closeout Audit Process.

Process for Accepting the Draft Audit Report


Upon receipt of a Draft Audit Report, a District has 10 business days from the date the MSBA sends the MSBA Draft Audit Report by email to accept or not accept the Draft Audit Report by completing the Acceptance/Non-Acceptance Form.

If a District accepts the Draft Audit Report, the district must submit the Acceptance Form within 10 business days from the date the MSBA sent the Draft Audit Report.  The Draft Audit Report will then be submitted to the MSBA Board of Directors for its consideration and approval.  Upon approval by the Board, the audit results will be considered final, and the MSBA will make the final grant payment, if any, to the District.  Failure to submit an Acceptance Form within the 10 business day deadline will likely result in payment delays.

If the District chooses NOT to accept the Draft Audit Report, the District must submit a signed Non-Acceptance Form within 10 business days from the date the MSBA sent the Draft Audit Report.  In addition, a District must submit in writing, to Tamia Buckingham, Director of Audit, new documentation and a summary of the disputed issues/costs within 20 business days from the date the MSBA sent the Draft Audit Report.  The MSBA will review this additional information only if these deadlines are met. Each District that submits a timely Non-Acceptance Form and supporting documentation may have the opportunity to meet with certain staff members of the MSBA before the audit results are submitted to the MSBA Board for its consideration.  Once the Board has voted on the audit results, the results will be considered final, and the MSBA will make the final grant payment, if any, to the District.

If the MSBA does not receive the required Non-Acceptance Form and related materials within the above-specified time frame, the Draft Audit Report will be submitted to the MSBA Board for its consideration and approval.  Once the Board has voted on the audit results, the results will be considered final, and the MSBA will make the final grant payment, if any, to the District.

 

Checklist of Final Closeout Audit Required Documents & Activities

 Name of District :
 Name of School :
 Project # :

The following lists all of the actions and/or documents necessary for the final closeout audit of the referenced project. The MSBA forms can be found on the MSBA website by clicking here.  The MSBA may require additional project specific documentation that is not on this list.  To properly prepare for Final Closeout Audit the MSBA has set deadlines for receipt of all required Closeout documentation and completion of all required Closeout activities.  These deadlines can be found here.  Please note that final payment cannot be made until the MSBA receives these documents.

 

 
Required Final Audit Closeout Documentation
 
  PFA Bid Budget Entered in Progress Payment Application
  Payment of 100% of project costs and submission of the final request for reimbursement via Pro-Pay
  MSBA Pre-Closeout Questionnaire
  MSBA form for Final Request and Certificate for Reimbursement
  MSBA form for Commissioning Certificate of Completion-for projects having a 10 month re-inspection
  MSBA Certification of Sustainable School Achievement (for Non-Repairs or Add/Reno projects)
  MSBA Milestone Schedule
  OPM’s  Contract and Amendments (if not already on file)
  Designer’s Contract and Amendments (if not already on file)
  Certificate of Substantial Completion
  Construction Contract and Final Change Orders/MSBA GMP Contingency Expenditure Log (if not already on file)
  All MSBA Budget Revision Requests
  100% DCAMM Notification from the District
  Permanent Certificate of Occupancy
  MSBA Audit Report Acceptance/Non-Acceptance Form (will be sent under separate cover with the Final Audit)
  MSBA Sources and Uses Form (will be sent under separate cover with the Final Audit)
  Other (as deemed necessary)


2016 – 2017 Schedule*
                    Deadlines for District Submission for consideration of final audit at MSBA Board meetings

 
To properly prepare for Final Closeout Audit, the MSBA has set deadlines set forth in this table for receipt of all required Closeout documentation and completion of all required Closeout activities.  A checklist of the required documentation and activities can be found here: Checklist of Final Closeout Audit Required Documents & Activities Submission by the deadline does not guarantee a district that its final audit will be presented at that board meeting.  Incomplete submissions will be returned to the District, and will not initiate the Final Closeout Audit process.
Target Board Date MSBA Due Date for District Submittal of Final Costs and Audit Checklist Documents MSBA Notification to District of Targeted Board Date
11/9/2016 8/22/2016 9/29/2016
2/15/2017 11/10/2016 12/30/2016
5/10/2017 2/17/2017 3/24/2017
6/28/2017 4/7/2017 5/12/2017
8/23/2017 6/2/2017 7/7/2017
10/25/2017 8/4/2017 9/8/2017
12/13/2017 9/20/2017 10/25/2017

 
*Dates are tentative and may be subject to change.  Please check back here for updated information throughout the year.