Audit Objective 

Determine whether the Town of Lodi (Town) Board (Board) adequately managed the Town Hall Capital Project (Project).

Key Findings 

The Board did not adequately manage the Project. As a result: 

• The Board did not develop or formally establish a total estimated Project cost, or provide an itemized Project budget or detailed timeline, for the renovation of a church into the new Town Hall and food pantry.
• The Board did not oversee the competitive bidding process for the pantry portion of the Project.
• The Board and its contractors did not ensure that required permits were obtained and required inspections were performed throughout the Project.
• Work associated with six change orders totaling $65,537 was completed without the Board’s approval.
• The Board approved 17 payments totaling approximately $930,000 to construction contractors without adequate supporting documentation, such as a certification that the work was performed and completed according to contract terms.

Key Recommendations 

The audit report includes nine recommendations that, if implemented, will improve the Board’s oversight of capital projects.

Town officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix C includes our comment on an issue that was raised in the Town’s response letter.