Capital program controls review and cost recovery audit for a confidential higher education institution

A confidential higher education institution operating a substantial annual capital program budget engaged the team to evaluate its capital program and project controls environment across a diverse portfolio of new construction, renovation, and maintenance projects. The institution required an independent assessment of whether its project delivery processes, controls, and compliance practices aligned with internal requirements and applicable state system control expectations. The engagement combined a capital program diagnostic with targeted cost recovery and compliance audit procedures across three sampled projects. The objective was to identify control improvement opportunities, assess compliance with established requirements, and quantify recoverable costs resulting from billing, contract, or project administration issues. The work provided leadership with both enterprise-level insight into program governance and project-level findings that supported measurable financial recovery opportunities. 

The team evaluated the institution’s capital program and project management processes, including governance, policy alignment, project controls, procurement practices, contract administration, invoice review, change management, reporting, documentation, and compliance with internal and state system control requirements. The assessment reviewed how projects were planned, approved, funded, executed, monitored, and closed out across the institution’s capital portfolio. In parallel, the team performed detailed cost recovery and compliance audit procedures on three sampled projects. Audit procedures included reviewing contracts, change orders, payment applications, supporting cost documentation, general conditions, allowances, markups, reimbursable costs, and project financial records. The team identified instances of non-compliance, quantified exceptions, and developed supported recovery analyses. Findings were organized to distinguish between project-specific recoverable amounts and broader opportunities to improve processes, controls, and governance  across the institution’s ongoing capital program. 

The engagement identified aggregate recoverable amounts exceeding US$600,000 across the three reviewed projects, providing the institution with immediate financial recovery opportunities and a stronger evidence base for addressing non-compliant project costs. Beyond the quantified recoveries, the review helped leadership understand where capital project controls, documentation, invoice review, contract compliance, and reporting practices could be strengthened. The findings supported enhanced oversight of contractor billings, improved alignment with internal and state system control requirements, and more consistent administration of capital project processes. The engagement also provided practical recommendations to improve governance, accountability, project-level documentation, and compliance monitoring across the institution’s capital program. By combining program-level diagnostics with targeted project audits, the institution obtained both strategic and tactical insights to improve financial stewardship, reduce future cost leakage, and strengthen capital program performance.