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Audit Objective

Determine whether the City of Binghamton (City) properly planned and monitored the Joint Sewage Treatment Facility Capital Project (Project).

Key Findings

City officials properly planned and monitored the Project by:

• Establishing a sound process for overseeing Project activities that included daily onsite inspections documenting:
  • Daily onsite personnel
  • Leak testing results for treatment lines
  • Concrete inspection and testing results, including core samples and composition
  • Work progress through photographic evidence
• Ensuring construction change orders were made only when warranted and after a thorough review.
• Avoiding $11.3 million in interest and financing costs over 30 years by obtaining a $15 million interest-free loan and securing grants to fund 27 percent of Project costs.
• Withholding payments to contractors to recover some of the $3.1 million in additional costs that were due to Project delays.

Key Recommendation

• Consult with legal counsel to determine whether some or all of the costs related to Project construction delays can be recovered.

City officials generally agreed with our findings and indicated they have begun to initiate corrective action.