A citizen-initiated petition audit of the Bismarck Public School District has been completed by the State Auditor. Under North Dakota law, the State Auditor’s Office may be called on to audit or review a political subdivision if enough qualified voters of that entity sign a petition request. The Bismarck Public School District petition request required 4,600 signatures, the petition had over 5,700 signatures.

The audit identified two areas of concern spanning the audit period of July 2022 - June 2023. These areas of concern were:

Incorrect Process for Hiring Construction Manager at Risk, and Missing Documentation (page 75)
Large building projects typically utilize a Construction Manager at Risk (CMAR). The CMAR works with the entity to oversee the construction project from start to finish. Before the beginning of the construction process, a selection committee is established to help with the project. The selection committee is required by law to include a registered architect, registered engineer, licensed contractor, and administrative individual. The audit found that two school constructions were not utilizing the CMAR process correctly. 

Request for Qualifications (RFQ) is a process where an entity requests quotes from suppliers for the purchase of products or services. An RFQ is important because it helps entities make informed decisions that review both costs and offerings from different vendors. The audit found that documentation was not being kept for the RFQ process. 

The opportunities for improvement were identified at:

                       Silver Ranch Elementary

• The selection committee did not include a registered architect or a licensed contractor.

• No documentation was found for the selection of the applicant to become the CMAR. Documenting the selection of the CMAR is important because of the large dollar value of the project, and it justifies the selection of the highest ranking.

                          Legacy High School

• The selection committee did not include a registered architect, licensed contractor, or registered engineer. 

• In the RFQ, the proposed budget limits were not listed. 

• No documentation was found for the selection of the applicant to become the CMAR. 

Procedures Not in Place for Conflict of Interest (page 77)
Bismarck Public Schools has a policy in place to avoid conflict of interest for all members of the staff and vendors, however they do not presently have procedures in place to obtain information if a potential conflict of interest arises. It’s important to have procedures to ensure that the school board avoids entering into contracts or using vendors that could pose a conflict of interest without awareness.

The board and staff of the Bismarck Public School District are presently working on addressing the concerns identified during the audit. 

The full audit report can be found at: https://bit.ly/BPS2024Petition